Bayer Completes Acquisition of Dihon Pharmaceutical Group Co., Ltd. in China

Leverkusen, November 3, 2014 — Bayer has completed the acquisition of 100 percent of the shares of Dihon Pharmaceutical Group Co., Ltd., Kunming, Yunnan, China, a privately held pharmaceutical company specializing primarily in over-the-counter (OTC) dermatology products and herbal traditional Chinese medicine (TCM) products for various women’s health indications. Bayer paid a purchase price of CNY 3.6 billion (approximately EUR 460 million).

“This acquisition is further evidence of our aim to strengthen our Life Sciences portfolio with strategic bolt-on acquisitions,” said Dr. Marijn Dekkers, CEO of Bayer AG. “In conjunction with the recently completed acquisition of Merck Consumer Care, this acquisition moves us into the leading position 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.”

“Dihon’s management team, shareholders and employees have built a strong business in China with a track record of success,” said Dr. Olivier Brandicourt, CEO of Bayer HealthCare AG. “We are delighted to bring Dihon’s outstanding brands into our growing OTC portfolio and to leverage the knowledge and expertise of our new employee base to further grow and develop these self-care solutions to the benefit of consumers across China and other parts of the world.”

Dihon generated sales of EUR 123 million in 2013. The company employs approximately 2,400 people in R&D, manufacturing, sales and marketing. In addition to operations in China, Dihon brands are sold in other countries such as Nigeria, Vietnam, Myanmar and Cambodia. Dihon’s headquarters is located in Kunming, China. The company also has several manufacturing sites throughout China.

About Bayer HealthCare

The Bayer Group is a global enterprise with core competencies in the fields of health care, agriculture and high-tech materials. Bayer HealthCare, a subgroup of Bayer AG with annual sales of EUR 18.9 billion (2013), is one of the world’s leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany. The company combines the global activities of the Animal Health, Consumer Care, Medical Care and Pharmaceuticals divisions. Bayer HealthCare’s aim is to discover, develop, manufacture and market products that will improve human and animal health worldwide. Bayer HealthCare has a global workforce of 56,000 employees (Dec 31, 2013) and is represented in more than 100 countries. More information is available atwww.healthcare.bayer.com.

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