Cipla Limited’s wholly owned subsidiary in the UK, Cipla (EU) Limited’s recent purchase of a 51% stake in Quality Chemicals Limited, a pharmaceutical importer and distributor of human health, animal health and public health products in Uganda is a forward looking strategy, officials have noted.
Nevin Bradford, the Chief Executive Officer of Cipla Quality ChemicalIndustries Limited (CQCIL) says that the deal will provide a liquidity solution to longstanding Ugandan partners as well as enhance the productivity of the company.
“Quality Chemicals Limited is one of the leading distribution companies for pharmaceutical and consumer 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.”
It will further help in widening the investment opportunities and growing the business. This acquisition is positive and for the long term,” he explained.
The purchase valued at approx. $26m will boost Quality Chemicals Limited’s operations, a 22.05% shareholder in the company’s subsidiary in Uganda. CQCIL.
With the agreement, Cipla Limited’seffective stake in CQCIL has increased to 62.3% from 51%. CQCILmanufactures therapies for HIV, Malaria and Hepatitis.
According to Bradford, the deal has also enabled Cipla gain access to an attractive business platform and further consolidate its position in CQCIL while providing a springboard for further investment.
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.