Binex said Wednesday that it has signed an agreement to establish a joint-venture company with Chongqing Zein pharmaceutical in Chongqing, China.

Zein, which is rapidly growing under the active support of the Chongqing municipal government, is the world's largest producer of Orlistat, the main ingredient of Roche's obesity treatment Xenical, and is responsible for all aspects of product development, clinical, licensing and sales in China.

The company has also licensed an over-the-counter drug with the same ingredient as Xenical, an ethical drug that has shown it can change the Orlistat market in China through online and retail sales such as Alibaba Health.

Zein and Binex have also concluded a contract development and manufacturing organization (CDMO) agreement, as a follow-up accord of their previous technology transfer contract of antibody biosimilar, on Oct. 31 last year.

Binex has started working on process development and sample production.

To produce visible results of the joint venture quickly, the two companies have decided to use Zein's licensing capability to prioritize the sale of Binex's representative products, such as formaldehyde and eye drops, in China.

Considering that Orlistat, which is mainly sold online through Zein, became the top seller in the first year of its launch, the two sides expect that formaldehyde and eye drops will also have substantial sales potentials in China.

“Binex has secured joint management rights of the newly established company with a minimum investment in cooperation with Zein and obtained optional rights that guarantee up to 49 percent of all the business profits made it,” the company said.