Germany-based pharmaceutical giant Bayer has acquired all stocks of Dihon Pharmaceutical Group on Feb 26 and signed an equity transfer agreement. Insiders said that the acquisition would finish in the second half of the year, while Dihon’s operation framework wouldn’t experience changes in the short term.

Dihon was a Chinese-American venture jointly established in 1997 specializing in traditional herbal Chinese medicine. It was controlled by the Chinese side. At present, the company has evolved into a leader in Yunnan’s pharmaceutical industry as well as a famous drug company nationwide.

The marriage with Bayer was a result of its achievements in OTC and TCM fields that grabbed Bayer’s attention, according to Dihon.

Bayer hopes to join forces with Dihon and take advantage of Dihon’s experience and achievements in OTC and TCM through an acquisition plan to provide consumers with better quality and trustworthy drugs.

Going global is inevitable for Yunnan’s bio-industry

After the acquisition agreement was signed, the management committee of the Kunming National Hi-Tech Industries Development Zone said that the acquisition would not only help Dihon make inroads into the overseas market, but also boost the development of the national bio-industry in the zone.

The high-tech zone is a central part of the Kunming bio-industry that focuses on biodiversity and sustainable utilization. It’s the only national bio-industry facility in Yunnan and engages in the development of biological medicine, agriculture and resources.