Dr Reddy’s Laboratories (DRL) is believed to be in talks to buy Nicotinell brand of nicotine gum, from Haleon, the world’s biggest standalone consumer health business. Haleon was spun out of GlaxoSmithKline two years ago, according to a Sky News report.
DRL has emerged as the frontrunner to acquire the brand, the report said, while describing the talks between the two sides as “ongoing” and cautioned that there was no guarantee that a deal would be reached.
Nicotinell, which is sold in patch, gum and lozenge form, is said to be the second-largest nicotine replacement therapy product globally. Its prospective sale comes as the UK government prepares to phase out the sale of cigarettes.
It was unclear how much DRL might pay for the brand, but earlier media reports had said Nicotinell could be worth about $800 million in sale. Haleon declined to comment, while Dr Reddy’s has been contacted for comment, Sky News said.
If DRL does proceed with a deal, it would mark the latest in a string of acquisitions for the Indian and US-listed company. Its most recent purchase came earlier this month when it announced that it was buying MenoLabs, a portfolio of women’s health and dietary supplements.
A number of private equity firms, including Inflexion, had also explored offers for Nicotinell, although it was unclear which other suitors remained in contention should the DRL deal fall through.
DRL had earlier launched over-the-counter Nicotine Polacrilex Lozenges in the US market. These lozenges are used for cessation of smoking. In Britain, the company has had a presence since 2002, and includes commercial offices and a research and development centre in Cambridge.
It also operates an active pharmaceutical ingredient manufacturing site in Mirfield, west Yorkshire. Haleon owns a number of the most recognisable over-the-counter healthcare manufacturers in Britain, together with the multivitamin complement Centrum, Panadol ache reduction tablets and Sensodyne toothpaste.
