Haleon To Offload Non-Core Nicotine Therapy Business To Dr. Reddy's For Over $600M
Portfolio Pulse from Vandana Singh
Haleon plc (NYSE:HLN) has agreed to sell its nicotine replacement therapy business outside of the U.S. to Dr. Reddy's Laboratories SA, a subsidiary of Dr. Reddy's Laboratories Limited (NYSE:RDY), for approximately $632 million. The transaction is expected to be completed in early Q4 2024 and will allow Haleon to focus on strategic growth areas. The divestment is expected to dilute Haleon's fiscal year 2024 net revenue and adjusted operating profit by around 0.5% and 1%, respectively.
June 26, 2024 | 3:52 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Haleon is selling its nicotine replacement therapy business outside the U.S. to Dr. Reddy's for $632 million. The transaction will allow Haleon to focus on strategic growth areas but is expected to dilute fiscal year 2024 net revenue and adjusted operating profit by around 0.5% and 1%, respectively.
The divestment will allow Haleon to focus on strategic growth areas, but the expected dilution in net revenue and adjusted operating profit for fiscal year 2024 may have a neutral short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Dr. Reddy's Laboratories is acquiring Haleon's nicotine replacement therapy business outside the U.S. for $632 million. This acquisition is expected to enhance Dr. Reddy's portfolio with established brands like Nicotinell, Nicabate, Habitrol, and Thrive.
The acquisition of established brands in the nicotine replacement therapy market is likely to positively impact Dr. Reddy's stock in the short term as it enhances their product portfolio.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100