Cipla Quality Chemical Industries has changed its name to Quality Chemical Industries to reflect the exit last year of its former majority shareholder, India’s Cipla Limited, according to a statement signed by chairman and co-founder Emmanuel Katongole.
The drugmaker has, in effect, reverted to its original name, which it used before before entering into a joint venture with the Indian pharmaceutical giant in 2005. In 2013, Cipla acquired a majority stake in the then drug importer and distributor, which was later reduced from 62.3 per cent to 51.18 per cent in 2018, when it was listed on the Uganda Securities Exchange.
Cipla sold its stake in the drugmaker in November last year to Africa Capitalworks SSA 3, a Mauritius-based investment vehicle ultimately controlled by South African private equity fund Capitalworks Group, for $25mn (Shs94.2bn).
The main business of Quality Chemical Industries is the manufacture and sale of pharmaceuticals, such as antiretroviral drugs, artemisinin-based combination therapies for malaria, and hepatitis B drugs. The company exports to 13 African countries and two Southeast Asian countries, and also distributes medical products. It has licences to operate in 32 countries in sub-Saharan Africa and is looking to strengthen its regional presence.
Despite Cipla’s divestment, Quality Chemical Industries retained the critical technology required to manufacture drugs and maintain its core business from its previous owner. It also negotiated access to key technology and databases necessary to maintain its operations while it works to register its own assets. In addition, it will continue to supply Cipla group companies for at least the next three years.
Quality Chemical Industries was founded in 1997 by four Ugandans and two foreign partners. Three of the Ugandan founders, including Mr Katongole, together hold 8.4 per cent of the company’s shares. Africa Capitalworks holds an additional 4.5 per cent stake on their behalf, acquired when Cipla exited the company.
