In the latest example of consolidation in the fragmented OTC pharmaceutical market, Bayer is to acquire Merck & Co.’s consumer healthcare business for US$14.2 B, which equates to a 2013 pro forma EBIDTA multiple of 21 times. The deal will give Bayer second position in the global OTC market, behind the joint venture to be formed by Novartis and GlaxoSmithKline. Merck has also agreed to co-develop and co-commercialise Bayer’s portfolio of soluble guanylate cyclase modulators, including Adempas® (riociguat) which is approved for the treatment of certain forms of pulmonary hypertension.