Dr. Reddy’s invests $620 mn in Swiss arm to acquire Haleon’s Nicotinell portfolio 

Generic drugmaker Dr. Reddy’s Laboratories as part of its proposed acquisition of British firm Haleon’s global portfolio of consumer healthcare brands in the nicotine replacement therapy category outside of the U.S. has invested $620 million in a Swiss subsidiary.

Consequently, Dr. Reddy’s Laboratories SA, Switzerland, the subsidiary, allotted 62,00,000 non-convertible preference shares each with a nominal value of $100 on September 27. The funds infused into DRL SA will be used to acquire Nicotinell and related brands by way of acquisition of all of the quotas of Haleon Group firm Northstar Switzerland SARL incorporated in Switzerland, Dr. Reddy’s said in a filing on Friday.

The Hyderabad-based pharma major’s board, on July 27, had approved fund infusion of up to GBP 500 million ($640 million) in DRL SA towards the acquisition.

In June, announcing the signing of a definitive agreement, Dr. Reddy’s said the total consideration for the acquisition will consist of an upfront cash payment of GBP 458 million and performance-based contingent payments of up to GBP 42 million, payable in 2025 and 2026. It expected the transaction to close in early Q4 of calendar year 2024, subject to completion of customary conditions, including regulatory approvals.

The portfolio to be acquired consists of Nicotinell, a global leader in the NRT category with a footprint in over 30 countries spanning Europe, Asia, including Japan, and Latin America and local market-leading brand names of the product – Nicabate in Australia, Thrive in Canada, and Habitrol in New Zealand and Canada. The acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products, in all applicable global markets outside of the U.S., it had said.

Published - September 28, 2024 07:55 pm IST