LONDON (ShareCast) - (Sharecast News) - Haleon said on Wednesday that it has agreed to sell its nicotine replacement therapy (NRT) business outside of the US to Dr Reddy's Laboratories for £500m.

The portfolio consists of brands including Nicotinell, Nicabate, Habitrol and Thrive available in gum, lozenge and patch forms across over 30 markets.

Haleon said use of the net cash proceeds will be determined in line with capital allocation priorities, including reducing leverage.

The deal, which is expected to complete early in the fourth quarter, will allow the company to exit the NRT category outside of the US and will reduce complexity across the business "allowing increased focus on strategic growth areas," it said.

Chief executive Brian McNamara said: "The divestment of Haleon's NRT business outside of the US is a further example of Haleon being proactive in managing its portfolio and is consistent with our strategy as we implement change to become 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."

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