On 30 September 2024, Dr Reddy’s Laboratories announced that its subsidiary, Dr Reddy’s Laboratories SA, had entered into a definitive agreement with Haleon plc and its associate companies.
The agreement involves acquiring the global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy (NRT) category, excluding the United States.
As part of this acquisition, the company will purchase shares of Northstar Switzerland SARL, a Haleon group entity.
Following the acquisition, Northstar Switzerland, along with its wholly-owned subsidiaries-North Star OpCo Limited (UK) and North Star Sweden AB (Sweden)-became wholly-owned step-down subsidiaries of Dr Reddy’s Laboratories as of 30 September 2024.
Dr Reddy’s will acquire the share capital of Northstar Switzerland SARL for a total consideration of GBP 500 million (m), which includes an upfront cash payment of GBP 458 million and performance-based contingent payments of up to GBP 42 m, payable in 2025 and 2026.
The acquired portfolio features Nicotinell, a leading global brand in the NRT space, with a presence in over 30 countries across Europe, Asia, and Latin America.
The portfolio includes a variety of formats, such as lozenges, patches, and gum, along with pipeline products in all relevant global markets, excluding the US.
# China’s Suspension of Atomoxetine Capsules
hina’s National Medical Products Administration (NMPA) has suspended the import, sale, and use of Dr Reddy’s Laboratories’ Atomoxetine Hydrochloride capsules, effective 30 August 2024.
This decision follows a remote inspection of the company’s formulations manufacturing facility (FTO-3) in Bachupally, Hyderabad, by NMPA, which found that the production quality management of the capsules did not meet China’s Good Manufacturing Practice for Drugs.
As a result of the NMPA’s action, the National Drug Joint Procurement Office (NDJPO) of China has revoked Dr. Reddy’s “won” status for Atomoxetine Hydrochloride capsules and placed the company on the “violation list.” This suspension prohibits the company from participating in national centralised drug procurement activities from 30 August 2024, to 28 February 2026.
Atomoxetine Hydrochloride capsules are used to treat attention deficit hyperactivity disorder (ADHD). Dr Reddy’s is currently assessing the financial impact of this order.
# HIV Treatment Licensing Agreement
Hyderabad-based Hetero and Dr Reddy’s Laboratories on 2 October signed a non-exclusive, royalty-free voluntary licensing agreement with Gilead Sciences Ireland UC to manufacture and distribute lenacapavir, a breakthrough HIV treatment drug, in 120 primarily low- and lower-middle-income countries (LMICs), including India.
Lenacapavir is a United States Food and Drug Administration (USFDA)-approved drug indicated for the treatment of human immunodeficiency virus type 1 (HIV-1) infection in heavily treatment-experienced adults with multidrug-resistant HIV-1 infection, failing their current antiretroviral regimen due to resistance, intolerance, or safety considerations.
Additionally, lenacapavir is currently under investigation for the prevention of HIV (PrEP), which is yet to be approved globally.
Gilead Sciences first launched lenacapavir under the brand name Sunlenca in the United States and European markets in 2022. It is a first-in-class HIV-1 capsid inhibitor