June 26 (Reuters) - Haleon ( HLN ) will sell its

nicotine replacement therapy business outside the U.S. to a unit

of India's Dr. Reddy's for 500 million pounds ($632.55

million), the British consumer healthcare company said on

Wednesday.

The divestment is expected to dilute Haleon's ( HLN ) 2024 net

revenue and adjusted operating profit by about 0.5% and about

1%, respectively. The company kept the rest of the forecast

unchanged.

The business, which includes the Nicotinell brand of

nicotine gum, lozenges and patches, generated revenue of 217

million pounds last year.

Haleon ( HLN ), the maker of Sensodyne toothpaste, was created by a

merger of GSK and Pfizer's ( PFE ) consumer healthcare

businesses in 2019 and spun off from GSK in 2022.

Earlier this year, Haleon ( HLN ) also disposed off its popular

ChapStick brand.

The latest divestment, expected to close in the fourth

quarter, will allow Haleon ( HLN ) to lower debt and focus on its growth

areas such as non-prescription drugs, vitamins and oral care

products.

Dr. Reddy's, one of India's largest generic drugmakers,

draws a significant share of revenue from North America and

Europe.

The company, in May, noted that the consumer health sector

would be one of its key focus areas for future investments as it

looks to diversify its business operations.

Dr. Reddy's said in April it would form a joint venture with

Nestle India to make products such as supplements and

nutraceuticals.

Haleon's ( HLN ) shares were nearly flat in early afternoon trading

.

($1 = 0.7905 pounds)