Chinese Firm Eyes Bayer's Diabetes Business

The company Sinocare reportedly is willing to pay $1 billion for Bayer's diabetes business.

Brian Buntz

China is in the midst of remaking its healthcare infrastructure and a growing number of firms there are teaming up with Western medical device companies. Last month, we reported that iPhone assembler Foxconn was hoping to obtain distribution rights to Palo Alto, CA-based Varian Medical Systems' radiation devices.

Now, China-based Sinocare is prepared to bid $1 billion for Bayer AG's diabetes device unit, according to a Bloomberg report.

Reports began to surface last year that Bayer had plans to sell its Contour business, which Bloomberg then estimated could be worth between $1.25 billion and $2.5 billion.

Panasonic appeared to be the only potential bidder. In February, that company and the buyout firm KKR & Co. had announced that they were close to striking a deal with Bayer.  

The Bloomberg report states that the deal was delayed owing to interest from other bidders.

Bayer has been undergoing a restructuring plan to divest less-profitable divisions to give more attention to more lucrative healthcare sectors.

Sinocare is likely interested in the acquisition to diversify its own line of diabetes products in a move to help meet increasing demand as diabetes rates soar in China.

Brian Buntz is the editor-in-chief of MPMN and Qmed. Follow him on Twitter at @brian_buntz.

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