Kampala- Indian pharmaceutical company Cipla Limited yesterday announced acquisition of an additional 14.5 per cent stake in Quality Chemical Industries Ltd (QCIL) Uganda, bringing its majority shareholding to 51.05 per cent.
The shares were acquired by its wholly-owned step down subsidiary, Meditab Holdings Ltd, at a reported consideration of Shs37 billion ($15m).
QCIL’ chief executive Emmanuel Katongole said the company was excited about the prospect and would enable employment of more scientists to produce more types of quality drugs, locally at more affordable prices.
“We had dreams of expanding into manufacture of other medicines,” he said. “With more involvement from Cipla, this will be realised sooner than ever imagined possible.”
QCIL was formed in 2005 to sustainably meet the high demand for quality, affordable ARVs and antimalarial drugs through local production. This was premised on the fact that Africa is home to 80 per cent and 63 per cent of the world’s malaria and HIV/Aids cases respectively, yet the continent produces less than one per cent of the required medicines.
Cipla managing director Subhanu Saxena said they are pleased to have increased its stake in QCIL as this granted it the opportunity to increase its manufacturing base and supply more affordable medicines.
This is Cipla’s second majority stake buy in Africa after it completed acquisition of South Africa’s Cipla Medpro in July.