Bayer acquires OTC drug firm Dihon for $586 million
Updated: 2014-11-18 09:27
By Wang Hongyi in Shanghai and Li Yingqing in Kunming(China Daily)
|
|||||||||||
Germany-based drugmaker Bayer AG said it has completed the acquisition of privately held Dihon Pharmaceutical Group Co Ltd in Kunming, capital of Yunnan province, for 3.6 billion yuan ($586 million), which will help it become the world's largest non-prescription medicine group.
Bayer will hold 100 percent of Dihon, which specializes in over-the-counter skin products and herbal traditional Chinese medicine products for women.
"This acquisition ... is further evidence of our aim to strengthen our life sciences portfolio with strategic bolt-on acquisitions," said Marijn Dekkers, chief executive officer of Bayer.
"This acquisition moves us into the leading position in the OTC industry in China. It also brings a portfolio of well-known consumer brands, which will allow us to provide consumers with an even broader range of self-care options."
China's healthcare expenditures are forecast to nearly triple to $1 trillion by 2020, consultancy McKinsey & Co Inc has forecast.
More Chinese consumers are turning to health supplements and OTC health treatments, which will support the health and wellness market in the country. The Boston Consulting Group has forecast that China's consumer health and wellness market will approach $70 billion by 2020.
"By bringing Dihon into the Bayer family, we will greatly enhance our ability to provide consumers with a very broad range of self-care options," said Erica L. Mann, president of Bayer's consumer care division.
She said that Bayer will continue to invest in the Dihon business and its locations in Yunnan and the rest parts of China.
Mann said: "I have been told that Yunnan has more than 6,500 herbal medicine species. The vast resources, coupled with Yunnan's commitment to the pharmaceutical industry, make this province the perfect place for new drug and TCM development."
Dihon employs about 2,400 people in research and development, manufacturing, sales and marketing. Its brands are also sold in Nigeria, Vietnam, Myanmar and Cambodia.
|
|
Bayer hopes to cure what ails Chinese farms | PBOC urges unified clearing of OTC financial derivatives |
Related Stories
Bayer hopes to cure what ails Chinese farms 2014-10-08 07:57
Yhd sees healthy future in online OTC sales 2014-08-21 07:12
China to expand OTC market 2013-12-14 16:01
PBOC urges unified clearing of OTC financial derivatives 2014-02-21 09:50
Today's Top News
Deal set to boost food cooperation
Russia in upgraded war of words with NATO
Recovery MH17 wreckage to be completed in five days
Suspicious package prompts partial evacuation of British parliament
V4 countries decide to offer Ukraine help
Oil reserves to be published regularly
China stocks rise with Shanghai-HK stock connect launch
Chinese weapons winning battle for int'l market
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Blue skies ready to greet APEC |
Growth pangs |
Sea change |
'Old newcomers' |
General aviation hub reaches for the sky |
Endangered species threatens livelihoods |