Hungary's leading pharmaceutical producer Gedeon Richter Plc has reached agreements with owners of Rxmidas Pharmaceuticals Co. Ltd. to improve business presence in China's pharmaceutical market.

Richter announced that it will be having an initial 51% majority stake in a joint venture it has formed with Rxmidas, its marketing partner. Both companies agreed to make upfront payment together with milestone payments associated with any further rise in Richter's stake in the venture in the future.

Under the newly formed venture, Richter will execute the promotion and lifecycle management of its existing Rx products and licensed-in 3^rd party Rx products, establishing direct presence in the Chinese market with 7 regional offices and over 200 employees.

Richer said in a statement that the move is a further strategic step to diversity its global presence by improving its position in the Asian country, which it considers as one of the rapid growing pharmaceutical markets.