Quality Chemical Industries Limited

Last updated
Quality Chemical Industries Limited
Company typePublic
USE: QCIL
Industry Pharmaceutical Industry
FoundedJuly 10, 2005;18 years ago (2005-07-10)
Headquarters Luzira, Kampala, Uganda
Key people
 Emmanuel Katongole
Executive Chairman
Ajay Kumar Pal
Chief Executive Officer & Managing Director
John Collins Kamili
Chief Pharmacist & Executive Director
Services Pharmaceuticals
RevenueIncrease2.svg:Aftertax:USh31.7 billion (US$8.449 million) (March 2024) [1]
Total assets USh231.984 billion (US$61.834 million) (March 2024) [2]
Number of employees
350 (2012) [3]
Website ciplaqcil.co.ug

Quality Chemical Industries Limited (QCIL), formerly Cipla Quality Chemical Industries Limited (CiplaQCIL) is a pharmaceutical manufacturing company in Uganda. According to a 2007 published report, it was the only company in Africa that manufactured triple-combination antiretroviral (ARV) drugs. [4] QCIL also manufactures the antimalarial drug Lumartem, containing artemisinin and lumefantrine, [5] and the Hepatitis B generic medicines Texavir and Zentair. [6] [7]

Contents

Location

QCIL's pharmaceutical manufacturing plant is located in Luzira, a neighborhood in Nakawa Division in south-eastern Kampala. The plant is approximately 9 kilometres (6 mi), by road, south-east of Kampala's central business district. [8] The coordinates of the plant are 0°18'17.0"N, 32°38'22.0"E (Latitude:0.304723; Longitude:32.639436). [9]

Overview

As of 31 March 2024, the company's total assets were valued at USh231.984 billion (US$61.834 million), with shareholders' equity of USh188.199 billion (US$50.163 million). [2]

History

In 2004, Quality Chemicals Limited (QCL) convinced Indian drug maker Cipla to go into a joint venture with QCL and the government of Uganda to establish a pharmaceutical plant in Uganda. Ground was broken in 2005 and the factory was commissioned in 2007, [10] with capacity of 6 million pills daily. [11]

In 2009, TLG Capital, a London-based private equity company, [12] invested an undisclosed amount of money in the plant. [13] Later, CapitalWorks Investment Partners, a private equity firm based in South Africa, also became a shareholder in the plant. [14] In February 2010, the government of Uganda divested from the plant by selling its shares "at cost" to CiplaQCIL. The transaction was valued at US$5 million. [15]

In February 2011, the owners of the plant announced a US$40 million expansion of the production line to include increased production of antiretroviral and antimalarial medication. In April 2012, British media reported that CiplaQCIL was in the process of expanding its manufacturing capacity fourfold. The plant had received approval of its processes and products from the World Health Organization. The products were expected to be initially marketed in Burundi, the Democratic Republic of the Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. [15]

According to a 2012 published report, a second plant is being planned to be built next to the first plant, which would raise manufacturing capacity to 18 million pills daily. [16]

As of April 2016, the company's products were marketed in Cameroon, Comoros, Kenya, Namibia, Tanzania, Uganda, and Zambia. [17]

In February 2020, the factory passed the first of three stages, in qualification to supply medication to South Africa. At that time, the following countries were accepting shipments from the factory: (1) Tanzania (2) Namibia (3) Sierra Leone (4) Angola (5) Mozambique (6) Zambia (7) Rwanda and (8) Myanmar. [18] In March 2020 the company shipped 300,000 ARV does to South Africa. This was followed by another 150,000 doses in April 2020, to be followed by 150,000 doses every month thereafter. Rwanda, Ghana, Zimbabwe and Zambia are receiving regular shipments from the factory. [19]

The company began shipment of antiretroviral drugs to Botswana in June 2020. During the second quarter of 2020, pharmaceutical sales totaled US$10million (USh37 billion). Of that Uganda accounted for US$1 million (10 percent) and Botswana purchased drugs worth US$4 million (40 percent). Other African countries bought the remaining US$5 million (50 percent), worth of pharmaceuticals during the quarter. [20]

In April 2021 the Daily Monitor Newspaper reported that the company had been authorized to ship antimalarials and HIV/AIDS medication to 30 new African countries in West Africa and Southern Africa. This is in addition to the eleven African markets it has been shipping to since inception. This gave CiplaQCIL access to an estimated 74 percent of the African continental market. [21]

Market segmentation

The table below illustrates the market segmentation of CiplaQCIL products for the 12 months ended 30 June 2021, valued at USh127 billion (approx. US$36.1 million). [22]

Market Segmentation of CiplaQCIL Products, 1 July 2020 to 30 June 2021 (Gross Sales: USh127 Billion, Approx. US$36.1 Million).
RankCustomer ClassSales in US DollarsPercentageNotes
1 Government of Uganda 15.17 million48.0 [22]
2 United States Presidential Malaria Initiative 6.86 million19.0 [22]
3 The Global Fund to Fight AIDS, Tuberculosis and Malaria 4.33 million12.0 [22]
4Sovereign Customers2.89 million8.0 [22]
5Private Customers2.53 million7.0 [22]
6Others2.17 million6.0 [22]
Total36.10 million100.00

Note: Totals are slightly off due to rounding.

Ownership before November 2023

As of April 2017, the shareholding in the pharmaceutical plant was as depicted in the table below: [23] In 2017, the company began to implement plans to list some of its shares on the Uganda Securities Exchange. [24] After the listing it is expected that the shareholding in the company stock will be as reflected in the table below. [23] [25] [26] [27]

Shareholding In CiplaQCIL Pharmaceutical Factory
RankName of Owner % Ownership Pre-IPO % Ownership Post-IPO
1 Meditab Holdings Limited [28] 51.05 [29] 51.05 [29]
2 Cipla European Union [29] 11.25 [29] 0.00 [29]
3CapitalWorks Investment Partners14.40 [30] 11.11 [29]
4TLG Capital (Amistad)12.50 [31] 11.50 [29]
5 Emmanuel Katongole 3.60 [23] 2.78 [29]
5 Frederick Mutebi Kitaka 3.60 [23] 2.78 [29]
6 George Baguma 3.60 [23] 2.78 [29]
7Other investors via USE 0.00 [23] 18.00 [29]
Total100.00100.00

Ownership after November 2023

In November 2023, after a six-months wait, authorization was obtained from COMESA, for Cipla Limited to dispose of its 51.18 percent ownership in CiplaQCIL. The buyer is Africa Capitalworks, an equity fund, based in Mauritius, which now becomes the majority shareholder. The deal closed on 14 November 2023. It is expected that the company will rebrand to Quality Chemical Industries Limited (QCIL), to reflect current shareholding. As of 23 November 2023, after the exit of Cipla, the shareholding in the business was as depicted below. [34]

Quality Chemical Industries Limited (QCIL) Shareholding
RankShareholderDomicileOwnership (%)Notes
1Africa Capitalworks Mauritius
51.18
 [34]
2TLG Capital (Amistad) United Kingdom
11.51
 [34]
3SCB Mauritius a/c Capitalworks SSAMauritius
11.15
 [34]
4Government Employees Pension Fund Uganda
8.54
 [34]
5 NSSF Uganda Uganda
7.38
 [34]
6 Emmanuel Katongole Uganda
2.79
 [34]
7 Fredrick Mutebi Kitaka Uganda
2.79
 [34]
8 George William Baguma Uganda
2.79
 [34]
9Joseph YigaUganda
0.11
 [34]
10UAP Insurance Life FundUganda
0.07
 [34]
3OthersInternational via USE
1.69
 [34]
Total
100.00

On 15 February 2024, the company re-branded to Quality Chemical Industries Limited. [35]

Governance

The executive chairman of the board of directors of QCIL is Emmanuel Katongole, who was formerly the managing director of QCIL. He replaced Francis Kitaka, the first person in East Africa to train as a biochemist. [36] [37] The managing director of QCIL is Ajay Kumar Pal. He replaced Nevin Bradford who retired in 2021, after eight years with the company. John Collins Kamili is the Company Pharmacist and Executive Director at CiplaQCIL. [38]

Valuation

In September 2018, CQCIL offloaded 18 percent shareholding to institutional and individual investors. The IPO raised US$43.8 million. This puts the valuation of shareholders equity in the company at US$243.3 million. [39]

See also

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References

  1. ↑ Kabona Esiara (20 May 2024). "Uganda Drug Maker Dividend Up 120 Percent". The EastAfrican . Nairobi, Kenya. Retrieved 20 May 2024.
  2. 1 2 Quality Chemical Industries Limited (9 May 2024). "Quality Chemical Industries Limited: Audited Financial Statements For The Twelve Months Ended 31 March 2024" (PDF). Uganda Securities Exchange . Kampala, Uganda. Retrieved 20 May 2024.
  3. ↑ BBC (9 April 2012). "Making drugs into profit in Uganda". London: British Broadcasting Company (BBC). Retrieved 10 November 2018.
  4. ↑ Wendo, Charles (6 October 2007). "ARVs Production Starts Monday". New Vision . Kampala. Retrieved 23 June 2014.
  5. ↑ Key, Data (2011). "Quality Chemical Industries, Uganda". Pharmaceutical Technology. Retrieved 23 June 2014.
  6. ↑ CiplaQCi (2015). "Timeline & Milestones". Ciplaqcil.co.ug. Retrieved 10 April 2016.
  7. ↑ CiplaQCi (December 2015). "Komboa Newsletter" (PDF). Ciplaqcil.co.ug. p. 4. Retrieved 10 April 2016.
  8. ↑ Google (1 October 2021). "Distance between Post Office Building, Kampala Road, Kampala, Central Region, Uganda and Cipla Quality Chemicals Industries Limited, Port Bell Road, Kampala, Central Region, Uganda" (Map). Google Maps . Google. Retrieved 1 October 2021.
  9. ↑ Google (11 July 2016). "Location of Cipla Quality Chemical Industries Limited Pharmaceutical Factory, Luzira, Nakawa Division, Kampala, Uganda" (Map). Google Maps . Google. Retrieved 11 July 2016.
  10. ↑ Elvis Basudde, and Robert Kasozi (31 October 2007). "Kitaka, The Brain Behind Africa's First ARVs Factory". New Vision . Kampala. Retrieved 11 July 2016.
  11. ↑ Anderson, Tatum (22 November 2007). "Trip into the unknown". Nature. 450 (7169): 471. doi: 10.1038/450471a . PMID   18033269.
  12. ↑ TLG Capital (25 June 2018). "About TLG Capital". London: TLG Capital. Retrieved 25 June 2018.
  13. ↑ Investment International (9 September 2009). "Ugandan Project Attracts Investors". InvestmentInternational.com. Retrieved 23 June 2014.
  14. ↑ CIPLAQCIL. "Investment Partners in Cipla Quality Chemical Industries Limited". Kampala: Cipla Quality Chemical Industries Limited (CIPLAQCIL).
  15. 1 2 BBC (9 April 2012). "Making Drugs Into Profit In Uganda". BBC News . London. Retrieved 11 July 2016.
  16. ↑ Raymond Baguma (18 May 2012). "Quality Chemicals Giving Ugandans Fighting Chance". New Vision . Retrieved 23 June 2014.
  17. ↑ Emmanuel Ainebyoona (9 April 2016). "Uganda exports 70 tonnes of ARVs". Daily Monitor . Kampala, Uganda. Retrieved 11 July 2016.
  18. ↑ Dorothy Nakaweesi (14 February 2020). "Cipla starts move to export drugs to South Africa". Daily Monitor . Kampala. Retrieved 15 February 2020.
  19. ↑ Dorothy Nakaweesi (4 May 2020). "Cipla Starts ARV Export To South Africa". Daily Monitor . Kampala. Retrieved 4 May 2020.
  20. ↑ Dorothy Nakaweesi (9 July 2020). "Cipla Exports Drugs Worth Shs33.3 Billion In Three Months". Daily Monitor . Kampala. Retrieved 9 July 2020.
  21. ↑ Dorothy Nakaweesi (23 April 2021). "Cipla gets go-ahead to export drugs to 30 African countries". Daily Monitor . Kampala. Retrieved 23 April 2021.
  22. 1 2 3 4 5 6 7 Martin Luther Oketch (30 September 2021). "Cipla banks on new markets to return to profitability". Daily Monitor . Kampala, Uganda. Retrieved 30 September 2021.
  23. 1 2 3 4 5 6 UBN (7 April 2017). "Cipla Quality Chemical Industries to list 31.1% stake in IPO". Uganda Business News (UBN). Kampala, Uganda. Retrieved 25 June 2018.
  24. ↑ Michael Wakabi (23 June 2018). "Drug maker CIPLA and telco MTN to list on Uganda bourse". The EastAfrican . Nairobi, Kenya. Retrieved 24 June 2018.
  25. ↑ P K Malinz (2 August 2018). "Uganda's CiplaQCi set for IPO with a valuation of US $12.5 Million". Digest Africa Technologies. Kampala. Retrieved 2 August 2018.
  26. ↑ CQCIL (July 2018). "Cipla Quality Chemical Industries Limited: Investment Prospectus for Initial Public Offering, July 2018". Kampala, Uganda: Cipla Quality Chemical Industries Limited (CQCIL). Retrieved 4 August 2018.
  27. ↑ Charles Mpagi (18 August 2018). "Cipla Listing On Uganda Bourse A Key Milestone". The EastAfrican . Nairobi, Kenya. Retrieved 21 August 2018.
  28. ↑ Musisi, Frederic (22 November 2013). "Indian firm buys more shares in Quality Chemicals Limited". Daily Monitor . Kampala. Retrieved 28 October 2016.
  29. 1 2 3 4 5 6 7 8 9 10 11 CQCIL (July 2018). "Cipla Quality Chemical Industries Limited: Investment Prospectus for Initial Public Offering, July 2018". Luzira, Kampala: Cipla Quality Chemical Industries Limited (CQCIL). Retrieved 4 August 2018.
  30. ↑ Press Release (16 July 2014). "Quality Chemical Industries Limited rebrands following Cipla's increased shareholding" (PDF). Kampala: Cipla Quality Chemical Industries Limited (QCIL). Archived from the original (PDF) on 28 October 2016. Retrieved 10 November 2018.
  31. ↑ VCCircle.com (11 July 2011). "TLG Capital ups stake in Cipla's Africa JV". Reuters India . Retrieved 28 October 2016.
  32. 1 2 Verma, Anuradha (22 May 2015). "Cipla To Acquire 51% Stake In Ugandan Firm Quality Chemicals for $30 Million". Delhi: VCCirle.com. Retrieved 4 August 2018.
  33. ↑ Busuulwa, Bernard (7 April 2017). "Drug Firm CiplaQCIL Plans To Sell 31 Percent Stake In IPO On Uganda Bourse". The EastAfrican . Nairobi. Retrieved 4 August 2018.
  34. 1 2 3 4 5 6 7 8 9 10 11 12 Deogratius Wamala (23 November 2023). "Delayed Cipla exit plan costs Quality Chemical Shs20b". Daily Monitor . Kampala, Uganda. Retrieved 26 November 2023.
  35. ↑ Deogratius Wamala (26 February 2024). "Quality Chemical drops Cipla name". Daily Monitor . Kampala, Uganda. Retrieved 27 February 2024.
  36. ↑ Senyonyi, Taddewo (4 January 2014). "Francis X. Kitaka: The Unsung Hero of Uganda's Health And Agricultural Sectors". Kampala: The CEO Magazine. Retrieved 9 April 2016.
  37. ↑ Daily Monitor (18 October 2013). "Emmanuel Katongole: The Founder of Quality Chemicals". Daily Monitor . Kampala, Uganda. Retrieved 17 March 2015.
  38. ↑ Taddewo William Senyonyi (6 August 2021). "Cipla Quality Chemical Industries Appoints Ajay Kumar As New CEO". Business Focus Uganda. Kampala, Uganda. Retrieved 1 October 2021.
  39. ↑ "Ugandan unit of Indian drugs firm Cipla raises $43.8 million in IPO - Renaissance Capital". New York City: Nasdaq Quoting Reuters. Reuters. 17 September 2018. Retrieved 10 November 2018.

00°18′17″N32°38′22″E / 0.30472°N 32.63944°E / 0.30472; 32.63944

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