Bayer to buy Chinese OTC/TCM drugmaker Dihon Pharma

Germany’s leading pharma firm Bayer (BAYN: DE) says it plans to acquire 100% of Dihon Pharmaceutical, a privately held pharmaceutical Chinese company specializing primarily in over-the-counter (OTC) and herbal traditional Chinese medicine (TCM) products.

Financial details of the transaction have not been disclosed. The deal is subject to fulfillment of certain conditions, including merger control clearance, and is expected to close in the second half of 2014, said Bayer.

Commenting on the news, Bayer chief executive Marijn Dekkers said:“We aim to strengthen our Life Sciences portfolio with strategic bolt-on acquisitions globally. We are very pleased to have identified a consumer health care company in China with such a strong track record of success built by its dedicated employee base. This acquisition moves us into a leading position amongst multinationals 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.”