According to MM Warburg the Bayer agreement with Dihon will close in the second half of 2014 and is estimated to cost the German company $ 680 million,.
Bayer announced the purchase at a time when the German laboratory aims to become the largest pharmaceutical group in the world.
It is expected that earnings for Chinese medicine will triple, reaching $ 1 billion in 2020, from 357 thousand million dollars in 2011.
“What’s growing the most within Chinese healthcare is traditional medicine. It’s a strong part of their culture”, said Lilian Montero, industry analyst at Swiss bank Julius Baer.
Bayer reports that Dihon 2000 has approximately 400 employees and in 2013 generated sales of $ 168 million.
Although traditional Chinese medicine is gaining acceptance in the West, Bayer said it is too early to say whether the products Dihon will be exported to Germany or Europe.