Bayer and Dihon Pharmaceutical Group Co., Ltd announced on their official websites recently that Bayer has completed the acquisition of Dihon Pharmaceutical Group Co., Ltd., a privately held pharmaceutical company which based on Yunnan, China. Bayer paid a purchase price of CNY 3.6 billion (approximately EUR 460 million).
Bayer pointed out that acquiring Dihon would strengthen its Consumer Care business and move Bayer HealthCare a leading OTC (over the counter) position in key growth country. “This acquisition is further evidence of our aim to strengthen our Life Sciences portfolio with strategic bolt-on acquisitions,” said Bayer’s chief executive officer Dr. Marijn Dekkers
The general secretary of China Nonprescription Medicines Association (CNMA), Mr. Wang Ao indicated that for many foreign pharmaceutical companies, Chinese OTC market is very attractive and worthwhile larger investments. Apart from Bayer, Sanofi-Aventis, Swiss pharmaceutical manufacturers Novartis and other large foreign pharmaceutical companies once have purchase behavior or investment willingness to Chinese local pharmaceutical industry.
Dihon is one of the leading consumer health care companies in China, mainly providing innovative and effective chemical medicines and traditional Chinese medicines. Dihon brands are sold in China as well as other countries such as Nigeria, Vietnam, Myanmar and Cambodia. It generated sales of EUR 123 million in 2013.
The Bayer Group is a global enterprise with core competencies in the fields of health care, agriculture and high-tech materials. Bayer HealthCare, a subgroup of Bayer AG with annual sales of EUR 18.9 billion (2013), is one of the world’s leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany.