Skip to content

This Site is Intended for Healthcare Professionals Only

Search AI Powered

Latest Stories

Haleon sells nicotine replacement business for £500 Million to reduce debt

Haleon sells nicotine replacement business for £500 Million to reduce debt

Nicotinell, the second-largest nicotine replacement brand globally (excluding the US), was part of the divested portfolio 

Haleon, the FTSE 100 consumer healthcare group, has agreed to sell its nicotine replacement therapy business for £500 million to Dr. Reddy’s Laboratories, an Indian multinational specializing in generic drugs.

The sale is part of the company’s broader strategy to streamline its portfolio and reduce debts, The Times reported.


Following its separation from GSK almost two years ago, Haleon has been loaded with dept, which increased significantly after the issue of bonds to pay about £10 billion of dividends to GSK and its joint venture partner, Pfizer.

Since then, Haleon has been offloading non-core brands to manage its debt.

Brian McNamara, Haleon’s CEO, stated that the sale aims to make the company more "agile and competitive," noting that while the nicotine portfolio has "great brands," they are not core for the company.

Haleon has previously sold the lip balm brand ChapStick to Suave Brands, owned by American private equity firm Yellow Wood Partners, in a deal exceeding $500 million. Last July, it sold the antifungal treatment Lamisil to Karo Healthcare for £235 million.

The company has been considering the sale of its nicotine business, which also includes brands like Nicabate, Habitrol, and Thrive, for at least a year, with an initial asking price of $800 million.

The nicotine portfolio, which includes gums, lozenges, and patches across about 30 markets, forms part of Haleon’s digestive health and other division. The business generated £217 million in revenue last year, accounting for approximately two per cent of Haleon's total sales.

Haleon’s shares were slightly down by 0.3 per cent, trading at 331½p on the London Stock Exchange, close to its post-GSK separation trading price of 330p.

Nicotinell, the second-largest nicotine replacement brand globally (excluding the US), was part of the divested portfolio.

Analysts at Bernstein has anticipated that the sale would reduce Haleon’s debt ratio by 0.2 times this year, down from 2.8 times, which includes the company’s currently targeted £500 million share buyback target.

Bernstein also noted that by offloading low-growth assets and investing in new growth areas, Haleon can sustain a five per cent organic growth rate.

More For You

Community Pharmacy England (CPE) chief executive Janet Morrison was one of the signatories of the statement

Community Pharmacy England (CPE) chief executive Janet Morrison was one of the signatories of the statement

Primary care leaders join forces in effort to 'transform investment into primary care'

Community Pharmacy England (CPE) has teamed up with other national primary care bodies to urge the government to allocate more funds towards the sector.

In a joint statement released on the back of the government’s spending review, last week, the organisations welcomed the government’s continued determination to ‘shift care from hospitals to community and from sickness to prevention’ but warned that this would not be possible ‘without further investment in primary care’.

Keep ReadingShow less
Cancer patients warned against using weight-loss jabs

Macmillan Cancer Support said there is not enough evidence on how the weight-loss jabs might affect anti-cancer treatments.

iStock

Cancer patients warned against using weight-loss jabs

Cancer patients have been advised to consult their doctor before taking any weight-loss jabs.

Macmillan Cancer Support has issued this advisory following a surge in calls by cancer patients asking whether they can take fat loss jabs such as Wegovy and Mounjaro.

Keep ReadingShow less
Kamson Pharmacy to deliver more clinical services after installing hub and spoke technology

The FLOWRx auto hub in the new Kamson warehouse in Uckfield.

Kamson Pharmacy to deliver more clinical services after installing hub and spoke technology


Kamsons Pharmacy has announced that it has implemented a state-of-the-art hub and spoke dispensing model with the aim of freeing up more time to deliver clinical services.

Keep ReadingShow less
RPS group aims to tackle barriers holding back black pharmacy students

Work is underway to improve inclusivity in teaching

Pic credit: iStock

RPS group aims to tackle barriers holding back black pharmacy students

A cross-sector group aimed at tackling barriers that block the progression of black students and trainee pharmacists held its first meeting this week.

The Royal Pharmaceutical Society (RPS) has created the Differential Attainment Oversight Group to address issues that black or black British African student pharmacists and foundation trainees face such as limited access to work experience, financial support and visible role models in education and training.

Keep ReadingShow less
Older adult organizing medicine bottles in a cool, dry storage area during warm weather.

People are being advised to keep medicine below 25° C

Pic credit: iStock

Pharmacies advise patients on storing medicines safely during heatwave

Patients are being given important advice and guidance on the impact heat can have on their medicine and where to keep different medicines as the UK goes through a heatwave.

People are being advised to keep medicine below 25° C if they are able to, unless storage instructions state it needs to be kept at an alternative temperature, such as drugs that need to be refrigerated.

Keep ReadingShow less