Kampala, Uganda | THE INDEPENDENT | Drugs maker Cipla Quality Chemicals Limited (CiplaQCi) has announced that it has paid 4.7 billion Shillings to acquire what they described as the Human Care Business assets of Quality Chemicals Limited.
According to Nevin Bradford, the executive director of Cipla Quality Chemicals Limited, the human care business imports, markets and sells medicines manufactured by Cipla in India, to the private (non-government) pharmaceutical market. ”These include respiratory medicines, anti-infective, antifungals, gastroenterology, cardiovascular amongst others, he said.
Cipla, an Indian drugs manufacturer, first acquired 51 per cent of Quality Chemicals Limited in 2017 leading to the change of name to add the pre-fix Cipla. The other portion of Quality Chemicals Limited was still owned by six other individuals.
However, the Human Care Business arm of Quality Chemicals Limited was not part of the deal at the time. In a note to shareholders on Monday, Cipla says it had acquired these assets, including the takeover of the sales staff overseeing this arm.
In June 2020, Cipla Quality Chemicals Limited announced it had made a 36 billion Shillings loss for the year ended March 31. This was a drop from a 7 billion Shillings profit for the year ended March 2019.
The company said the loss was a failure to secure payment from the government of Zambia and had put aside more money to cover for the loss.
It said its assets had also dropped to 248 billion shillings for the year up to March 2020 Shs287 billion in March 2019.
Cipla Quality Chemicals Limited was mainly doing businesses with governments but the acquisition of an arm that does business with private health care providers is expected to boost sales and revenues for the company.
Since listing on the Uganda Securities Exchange in 2018, Cipla Quality Chemicals Limited has lost much of its value with investors unimpressed with its performance. Its share price has dropped from the initial offering price of 256.5 shillings apiece to 95 shillings per share at the moment.