Dr Reddy's Funnels USD 620 Million in Switzerland subsidiary

Drug manufacturer Dr Reddy's Laboratories Ltd has invested $620 million into its wholly-owned branch, Dr Reddy’s Laboratories SA, Switzerland (DRL SA). This investment is consistent with the company's previous board-approved decision to invest up to ?500 million ($640 million) to purchase the Nicotinell brand and its associated assets from the Haleon Group.

DRL SA has released 6.2 million non-convertible preference shares, with a value of $100 each, to Dr Reddy’s Laboratories. DRL SA plans to use the funds raised to purchase Northstar Switzerland SARL, the owner of the Nicotinell brand.

Investing in DRL SA is considered a related party transaction because it is fully owned by Dr Reddy's. Nevertheless, the investment was carried out relying on an appraisal report from an impartial valuer. The deal is carried out at an independent level, without any further involvement from the promoter or promoter group in DRL SA.

This year, on June 26, the top pharmaceutical company entered into a final agreement with Haleon lc, a consumer healthcare firm, to acquire shares of its subsidiary Northstar Switzerland SARL. DRL aims to purchase an international collection of consumer healthcare brands for £500 million, excluding those in the United States.

DRL is set to purchase Nicotinell, the nicotine replacement therapy (NRT) sector, and associated brands from Haleon Plc. The acquired portfolio's revenue totals £217 million in 2023, £200 million in 2022, and £201 million in 2021.