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Haleon 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 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.

The divestment, expected to close in the fourth quarter, will allow Haleon to increase focus on its strategic growth areas.

Shares in Haleon were about flat in early afternoon trading.

($1 = 0.7905 pounds)