Bayer to acquire Topsun's OTC business at RMB 1 bln

Bayer Healthcare, a subsidiary of German-based industry giant Bayer, has received the approval from the Ministry of Commerce to purchase over-the-counter (OTC) cough and cold medicine business of Topsun Science and Technology<600771> at more than RMB 1 billion, thereby being the largest acquisition in China's pharmaceutical industry.

According to the acquisition agreement signed last year, Topsun will be transferring its manufacturing facilities, distribution networks, personnel and assets for OTC cough and cold medicines, including Xiaobai, Xinli and leading cold medicine Black & White, to Bayer Healthcare. The German company will pay another RMB 192 million, if the transfer meets the expected performance criteria.

With the assistance of Topsun's extensive distribution network and leading brand portfolio in the OTC market, Bayer could strengthen its OTC business and reinforce its presence in China, one of the fastest growing OTC market in the world

Topsun Science and Technology is a subsidiary of Topsun Group, one of China's largest private pharmaceutical companies. The acquisition will help the company to repay its debts and enable Topsun to focus on high-end medicines.