HYDERABAD: Dr. Reddy’s will buy UK company’s nicotine gum business for Rs 5,000 crore

HYDERABAD : Hyderabad Pharma major Dr Reddy’s Laboratories British Pharma major Dr Reddy’s Laboratories is buying the entire nicotine replacement therapy (NRT) business of British consumer healthcare player Helion Plc outside the United States market for 500 million pounds. As part of the deal, Dr Reddy’s arm Dr Reddy’s Laboratories SA will acquire 100% stake in recently incorporated Helion Group company Northstar Switzerland SARL and has signed a definitive agreement for the same, the company said in a regulatory filing.

The portfolio being acquired by the Hyderabad-based company includes Nicotinelle, which is said to be the second-largest brand in the NRT space globally, with a presence in 31 countries across Europe, Latin America and Asia, including countries like Japan.

Nicotinell is also known as Nicobet in Australia, Thrive in Canada and Habitrol in New Zealand and Canada. The deal includes an upfront payment of 458 million pounds and performance-based contingent payments of up to 42 million pounds, payable in 2025 and 2026. Dr Reddy’s said the deal, which is expected to be completed in the fourth quarter of 2024 and is subject to satisfactory completion of customary conditions including regulatory approvals, will provide it access to a global OTC anchor brand that will be a potential vehicle for the company to build its global consumer healthcare OTC business.

Dr Reddy’s said, “The proposed acquisition will include all formats such as lozenge, patch, gum as well as pipeline products in all applicable global markets outside the US.” The total revenue of the portfolio being acquired was projected to be approximately £217 million in net revenue in 2023. The company is expanding its presence in consumer healthcare markets globally, acquiring multiple brands such as Habitrol in the NRT space, pain relief brand Don, women’s health products such as Premma for fertility and parenthood and the Menolabs portfolio for menopause. “The intellectual property, commercial contracts, dossiers and other assets relating to the portfolio being acquired will remain in NorthStar Switzerland and its wholly-owned step-down subsidiaries North Star Opco Ltd and North Star Sweden AB, which will be incorporated in England & Wales and Sweden, respectively,”