UPDATE 1-Bayer Healthcare aims for China growth above 20 pct

SHANGHAI, July 8 (Reuters) - Bayer AG's BAYG.DE healthcare unit is aiming for sales growth in China of more than 20 percent a year over the next five years to maintain its lead over larger global rivals in the country, a senior executive said on Tuesday.

Bayer HealthCare, which competes with Pfizer Inc (PFE.N) and other big drugmakers globally, is intensifying its focus on China, where rapid urbanisation and changing lifestyles are boosting sales of medicines for diabetes, hypertension and cancer. "Most market predictions say that China's healthcare market will grow about 20 percent per year in the foreseeable future, and our goal is to grow above the market," Liam Condon, managing director of Bayer's China healthcare unit, told Reuters.

The Bayer healthcare unit, which consists mainly of pharmaceutical operations and generates about one-third of the group's overall sales in China, is expected to reach about 4.5 billion yuan ($656 million) in sales in the country in 2008, Condon said.

China is the only market worldwide where the Bayer healthcare unit leads multinational rivals AstraZeneca Plc (AZN.L) and Pfizer in terms of annual sales, the Irish executive said, adding that he wanted to maintain that edge.

"We are number one today. And if we can continue to grow above market average, we can stay number one. That is the goal," he said.

EYES ACQUISITIONS

Bayer HealthCare, which started investing in China nearly 20 years ago, now operates four manufacturing facilities in the country.

It is scheduled to complete a 25 million euro ($39 million) expansion of a plant in Beijing making aspirin, diabetes drugs and other medicines later this year, and will continue to expand other plants incrementally in response to market demand, he added.

Bayer HealthCare last week completed the acquisition of the over-the-counter cough and cold portfolio of China's Topsun Science and Technology Qidong Gaitianli Pharmaceutical Co for more than 1 billion yuan, marking its first local acquisition in the country.

Condon said that, while focusing on organic growth, he will continue to look for potential acquisition targets in China.

"Whether it is buying a company or buying a product, if it is a suitable opportunity, our company will always be interested." ($1=6.860 Yuan; $1=.6367 Euro) (Editing by Edmund Klamann)