Uganda: Cipla buys 51% in Uganda drugs firm
- Author:
- East African Business Week
“Quality Chemicals Limited is one of the leading distribution companies for pharmaceutical andconsumer products and this deal provides Cipla with a platform to expand its non-tender private market reach in Uganda, thereby extending the delivery of its therapies to a much broader set of patients,” Nevin Bradford, the Chief Executive Officer of Cipla Quality Chemical Industries Limited (CQCIL) said.
A centreprice of the deal is that CQCIL will provide a liquidity solution to longstanding Ugandan partners as well as improve the productivity of the company.
He said Cipla (EU) Limited’s 51% acquisition of stakes in Quality Chemicals Limited will help in widening the investment opportunities and grow the business further. “This acquisition is positive and for the long term,” Bradford explained.
According to Bradford, the deal has enabled Cipla gain access to an attractive business platform and further consolidate its position in CQCIL while providing a springboard for further investment.
The purchase valued at approximately $26 million, according to officials will boost Quality Chemicals Limited’s operations, a 22.05% shareholder in the company’s subsidiary in Uganda. CQCIL. With the agreement, Cipla Limited’s effective stake in CQCIL has increased to 62.3% from 51%. CQCIL manufactures therapies for HIV, Malaria and Hepatitis.
CQCIL recently unveiled the ‘One Pill a Day’ HIV/AIDS therapy, as well as the first Hepatitis B Drug to be manufactured in Africa. These developments will go a long way in providing much needed affordable healthcare across the continent officials say.
For more than 70 years, Cipla has emerged as one of the most respected pharmaceutical names in India as well as across more than 150 countries.
Cipla’s portfolio includes over 1500 products across a wide range of therapeutic categories with one quality standard globally.
According to the pharmaceutical giants whilst delivering a long-term sustainable business, Cipla recognises its duty to provide affordable medicines.
The company said Cipla’s emphasis on patients access to needed drugs was recognised globally for the pioneering role played in HIV/AIDS treatment.
It was the first pharmaceutical company to provide a triple combination anti-retroviral (ARV) in Africa at less than a dollar a day.
By Sharon Kyatusiimire
