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Home » Bayer to acquire Dihon Pharmaceutical in China

Bayer to acquire Dihon Pharmaceutical in China

February 27, 2014
CenterWatch Staff

Bayer plans to acquire Dihon Pharmaceutical Group, a privately held pharmaceutical company based in Kunming Yunnan, China, specializing primarily in over-the-counter (OTC) and herbal traditional Chinese medicine (TCM) products.

Dihon is a provider of products such as Kang Wang, for the treatment of dandruff and other scalp disorders, and Pi Kang Wang, an antifungal cream, as well as TCM product Dan E Fu Kang for the treatment of various women’s health indications. Financial details have not been disclosed. The transaction is subject to fulfillment of certain conditions, including merger control clearance, and is expected to close in the second half of 2014.

“Adding the strong OTC brands from Dihon to our portfolio will significantly advance our business in China and positions us well for future growth,” said Olivier Brandicourt, CEO of Bayer HealthCare. “Equally important is the foothold we will gain in TCM, which makes up about half of the OTC segment in China and is a well-accepted and sought after line of natural science-based alternative therapies for consumers looking for trusted solutions for their health care needs. We think we can leverage our recent acquisition of Steigerwald in combination with Dihon’s herbal TCM expertise and pipeline to benefit both these areas, which have a different but related heritage.”

“Self-care is a critically important component of healthcare in China and internationally, and OTCs are an important tool to help people live happier, healthier and longer,” said Zhenyu Guo, chairman and CEO of Dihon Pharmaceutical Group. “This acquisition will further strengthen the Yunnan pharmaceutical industry and offers the potential to further expand TCM to other parts of the world.”

Dihon generated sales of $168 million in 2013. The company employs approximately 2,400 in R&D, manufacturing, sales and marketing. In addition to operations in China, Dihon brands are sold in Nigeria, Vietnam, Myanmar and Cambodia.

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