Grapevine

Quality Chemical to set up $50m TB, cancer drugs plant

Quality Chemical Industries, formerly Cipla Quality Chemical, is in negotiations to open a new manufacturing plant to produce new medications.

The plant, if realised, will produce medications for infectious and non-communicable diseases, to add to its HIV and anti-malarial drugs.

Mr Emmanuel Katongole, the Quality Chemical chairman, confirmed on Friday in Kampala, noting that the new plant will be used partially for Tuberculosis (TB) and cancer drug development. “Banks have given their terms, including Standard Chartered. Organisations like Usaid have said it will fund us, and the Italian government has also come on board. We are taking the best bet on the options available to us. This will be an investment of about $50m,” he said.

This is an important step forward that the company has taken since it was taken over by Africa Capitalworks in November 2023.

Africa Capitalworks paid $25m to acquire Cipla India’s 51.18 percent stake, giving Quality Chemical a new direction in which it renegotiated its Technology License Agreement to continue accessing the technology needed to protect its current contracts and business dealings, Manufacture and Supply Agreement to continue providing members of the Cipla Group with a predetermined volume of products and the Transitional Services Agreement, which granted it access to specific technology and databases to manage its business and establish its own name.