Dr. Reddy’s to Acquire Nicotinell and Related Portfolio in Significant Step Towards Building Global Consumer Healthcare Business
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Portfolio to be acquired consists of global NRT brand Nicotinell and its local market-leading brand names Nicabate, Habitrol and Thrive in markets outside of
the United States - Acquisition seen as ideal anchor to continue to build the company’s global consumer healthcare OTC business
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In recent years, Dr. Reddy’s has increased its presence in consumer healthcare (nutrition and OTC wellness) in markets around the world, including a recent joint venture with Nestlé
India

Dr. Reddy’s to acquire Nicotinell and related portfolio in significant step towards building global consumer healthcare business (Graphic: Business Wire)
Nicotinell is the second biggest brand globally (excluding
Dr. Reddy’s will acquire the share capital of Northstar Switzerland SARL for a total consideration of
Upon closing of the transaction, Dr. Reddy’s will acquire the NRT business in all countries outside of
Tobacco use causes eight million deaths every year from health consequences such as cardiovascular diseases, lung disorders, cancers, diabetes, and many other debilitating diseases. According to the World Health Organization (“WHO”), of the 1.3 billion tobacco users globally, as many as
NRT is recommended by the ‘World Health Organization Model List of Essential Medicines’ for nicotine use disorders4. NRT also played a key role in the WHO’s ‘Access Initiative for Quitting Tobacco’ launched in 2020 to help tobacco users quit to reduce the risk of severe outcomes from COVID-19 infection5.
In line with its stated strategic intention, Dr. Reddy’s continues to focus on its core business of generics, branded generics, Active Pharmaceutical Ingredients (API), over-the-counter (OTC) products, and biosimilars. Alongside this, the company has been investing in growth drivers of the future in three areas – access to novel molecules (NCEs, NBEs, CAR-T); digital therapeutics (wearables, apps); and consumer healthcare (including nutrition and OTC wellness products). As part of its consumer healthcare OTC business in
Erez Israeli, Chief Executive Officer of Dr. Reddy’s, said: “We see the acquisition of this global portfolio of consumer healthcare products led by the global brand Nicotinell as a logical extension of our efforts in consumer healthcare OTC in recent years, and of our purpose of ‘Good Health Can’t Wait’. We have been steadily building our OTC presence in various markets and investing in our capabilities. As a business, consumer healthcare is a growing and sustainable business with favourable long-term trends. The business to be acquired from Haleon has maintained steady sales and strong profitability over the years. The portfolio is attractive for its customer loyalty, its global nature, and the access it provides to key customers. We believe we can unlock more value, grow the portfolio further, and increase consumer access around the world to these global brands. Given these advantages, it is the ideal anchor around which to build a larger global OTC platform.”
About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in
About Haleon: Haleon (LSE /NYSE: HLN) is a global leader in consumer health, with a purpose to deliver better everyday health with humanity. Haleon’s product portfolio spans five major categories – Oral Health, Pain Relief, Respiratory Health, Digestive Health and Other, and Vitamins, Minerals and Supplements (VMS). Its long-standing brands – such as Advil, Sensodyne, Panadol, Voltaren, Theraflu, Otrivin, Polident, parodontax and Centrum – are built on trusted science, innovation and deep human understanding. For more information, please visit www.haleon.com.
Disclaimer: This press release may include statements of future expectations and other forward-looking statements that are based on the management’s current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates, interest rates, persistency levels and frequency / severity of insured loss events, (ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization, including related integration issues, and (vi) the susceptibility of our industry and the markets addressed by our, and our customers’, products and services to economic downturns as a result of natural disasters, epidemics, pandemics or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements" sections of our Annual Report on Form 20-F for the year ended March 31, 2024. The company assumes no obligation to update any information contained herein.
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1 Based on 2022 Retail Sales Value
2 Nicholas Hall DB6 database 2023 (definition of global brands – sold in at least 5 countries / 2 regions)
3 https://www.who.int/news/item/05-11-2021-two-new-tobacco-cessation-medicines-added-to-the-who-essential-medicines-list#:~:text=On%
4 WHO Model List of Essential Medicines 2023 - https://www.who.int/publications/i/item/WHO-MHP-HPS-EML-2023.02
5 https://www.who.int/news/item/10-07-2020-who-and-partners-to-help-more-than-1-billion-people-quit-tobacco-to-reduce-risk-of-covid-19#:~:text=The%20project%20gives%20people%20free,personalized%20plan%20to%20quit%20tobacco.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240626898799/en/
INVESTOR RELATIONS
RICHA PERIWAL
richaperiwal@drreddys.com
MEDIA RELATIONS
USHA IYER
USHAIYER@DRREDDYS.COM
Source: Dr. Reddy’s Laboratories Ltd.