Recently, Bayer AG spent 3.6 billion yuan on the buyout of Kunming Dihon Pharmaceutical Co., Ltd. (DIHON), one of the leading pharmaceutical companies in Yunnan, China processing a great deal of patents in regard of traditional Chinese medicine. The buyout includes DIHON’s four bases located in Kunming, Shanghai and Chengdu as well as one research and development center.

This is the second big movement for Bayer AG to acquire the traditional Chinese medicine enterprise, following its takeover of Compound Pseudoephedrine Hydrochloride Tablets which before belongs to Tung Shing Group, one of the most influential pharmaceutical enterprise in China. Unlike the previous acquisitions conducted by foreign pharmaceutical enterprises which mainly focus on the resource and distribution, Bayer AG acquired both the plant resources in Yunnan and the OTC channels from DIHON.

(Source: China IP Magazine)