Bayer HealthCare, part of German chemical and pharmaceutical group Bayer AG, has completed its acquisition of Chinese pharmaceutical company Dihon Pharmaceutical Group Co., Ltd.

The purchase price was approximately $590 million.

Bayer HealthCare said on Monday that this acquisition would strengthen its Consumer Care business and give the company a leading OTC position in a key growth country.

Dihon specializes primarily in over-the-counter (OTC) dermatology products and herbal traditional Chinese medicine products for various women's health indications. In addition to its business in China, Dihon brands are sold in other countries including Nigeria, Vietnam, Myanmar and Cambodia. The company generated sales of approximately $154 million in 2013.

"This acquisition is further evidence of our aim to strengthen our Life Sciences portfolio with strategic bolt-on acquisitions," commented 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."

Also on Monday, Bayer HealthCare announced that it will invest up to $25 million in Versant Ventures' newly formed "Versant Venture Capital V" fund to support the development of new therapies in areas of high unmet medical need.

Under the agreement, Bayer will lend its expertise in drug discovery and development. Versant's fund management team maintains full decision-making rights with regard to investments in portfolio companies.