Will Bayer AG Overtake AstraZeneca in China Drug Sales?

According to Reuters, Germany's Bayer AG (BYERF.PK) thinks it can become the biggest seller of prescription drugs in China this year, bypassing AstraZeneca (NYSE: AZN), which is currently the top dog.

Arthur J. Higgins, the head of Bayer Healthcare, said that revenues in China are growing at more than 40% annually. In 2008, they will top $500 million for the Germany-based pharma giant.

Worldwide, Higgins expects Bayer will do some small deals this year, probably in medical devices, diabetes care, animal health and regional opportunities in over-the-counter medicines, but would most likely not undertake a mega-transaction, even though it has the capacity to do so.

He also said that Bayer would not make a major purchase of a generic firm. It is currently doing quite well with its off-patent drugs in China, so a generic acquisition would not be helpful.

Disclosure: none.