Haleon sells nicotine replacement therapy business outside of US for £500m

Sensodyne and Panadol maker Haleon has agreed to sell its nicotine replacement brands outside of the US for £500 million, as part of ongoing efforts to trim down its consumer health portfolio.

The healthcare giant said it was selling its nicotine replacement therapy business to a division of Indian drugmaker Dr Reddy’s Laboratories.

It includes brands Nicotinell, Nicabate, Habitrol and Thrive which are sold as lozenges, patches and gum in different strengths and flavours.

The products, designed for people who want to quit smoking, are sold in 30 markets around the world.

The sale does not incorporate Haleon’s business in America.

Haleon – which was spun off from drug giant GSK in 2022 – said the nicotine replacement therapy business generated net revenues of £217 million over 2023.

Selling it will knock about 0.5% off total revenues and 1% off profits this year, it estimated.

Brian McNamara, the firm’s chief executive, said the sale is “a further example of Haleon being proactive in managing its portfolio” and aligns with plans to be “more agile and competitive”.

“Whilst this business has great brands, these are not core for us, but I’m sure they will continue to flourish given the focus and capability of Dr Reddy’s,” he added.

Haleon has taken steps in recent months to offload a number of brands as part of wider efforts to simplify the business.

Earlier this year, it agreed to sell its ChapStick lip balm brand in a deal worth around 510 million US dollars (£404 million), while it sold off athlete’s foot treatment Lamisil last year.

It has previously outlined plans to focus on a handful of “higher growth” brands and hopes to save about £300 million over the next two years.

The company continues to own well-known household brands such as Sensodyne toothpaste, Panadol and Advil pain relief medication, and Centrum vitamins.