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Bayer Increases Chinese Presence With Topsun Cough/Cold Buy

This article was originally published in The Tan Sheet

Executive Summary

Bayer expects its purchase of Topsun Science & Technology's nonprescription cough and cold portfolio to "substantially increase Bayer Consumer Care's presence in China, one of the fastest growing OTC markets in the world," the firm states Oct. 25

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Bayer closes its $157 million acquisition of part of Topsun Science & Technology Qidong Gaitianli Pharmaceutical Co.'s OTC assets, the firms say July 3. Bayer gained the Chinese firm compound pseudoephedrine hydrochloride tablets, which analysts expect to produce $48 million in sales this year. Bayer will also pay a $24 million bonus at the end of the year as part of the deal (1"The Tan Sheet" Oct. 30, 2006, p. 9)...

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Aleve pain reliever sales advanced 27.5% to $302.3 mil. (E1=$1.33) in 2006 (ended Dec. 31), Bayer announces March 15. One-A-Day achieved sales growth of 5.1% to $165.1 mil. and Alka-Seltzer revenues increased 6.3% to $101 mil. for the year, firm adds. The brands helped drive sales of Bayer's Consumer Health Consumer Care Division, which jumped 7.5% to $3.37 bil. for the year, the company reports, noting it doubled sales of its OTC pharmaceuticals franchise during the year. The Consumer Health segment had net sales of $5.66 bil., representing growth of 8.1%. The company is continuing expansion of the Consumer Health division abroad, particularly in China, with the recent purchase of OTC company Topsun's cough/cold portfolio (1"The Tan Sheet" Oct. 30, 2006, p. 9). The HealthCare group's net sales grew 46.6% to $15.62 bil., and earnings before interest, taxes, depreciation and amortization before special items soared 75.7% to $3.48 bil. Bayer is targeting underlying EBITDA margin growth of about 27% in HealthCare in 2009...

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