|Germany’s Bayer moves in on Kunming-based drug maker Dihon
German pharmaceuticals giant Bayer, maker of Aspirin, said it had signed an agreement to buy the privately-owned Chinese group Dihon Pharmaceutical for an undisclosed sum.
Dihon, founded in 1997, specialises in prescription-free or over-the-counter drugs and is one of China's leading groups in that segment, Bayer said in a statement. It also makes herbal traditional Chinese medicine products.
Dihon makes Chinese medicines in five areas: dermatitis, acne, recurrent oral ulcer, hyperosteogeny, and endometriosis.
The company employs 2,400 and generated annual sales of 123 million euros in 2013.
Its products include the anti-dandruff treatment Kang Wang and Pi Kang Wang, a cream against skin fungus.
The deal must be approved by anti-trust authorities. Bayer expects to complete it in the second half of this year.
“We want to strengthen our life-sciences portfolio via strategic acquisitions. With this deal, we will attain a leading position among the multi-nationals present in the Chinese OTC market,'' said chief executive Marijn Dekkers.
Dihon also sells its products in Nigeria, Vietnam, Myanmar and Cambodia and is headquartered in Kunming in south west China.—AFP/The Standard