Quality Chemical Industries Limited

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Quality Chemical Industries Limited
Type Private
Industry Pharmaceutical Industry
Founded 2005
Headquarters Luzira, Kampala, Uganda
Key people Francis X Kitaka
Chairman
Emmanuel Katongole
Managing Director & CEO
Services Pharmaceutical manufacturing
Total assets US$120 million (2012)[1]
Employees 350 (2012)
Website Homepage

Quality Chemical Industries Limited (QCIL), is a pharmaceutical manufacturing company in Uganda. It is the only company in Sub-Saharan Africa that manufactures triple-combination antiretroviral (ARV) drugs.[2]

Location[edit]

The pharmaceutical manufacturing plant is located in the southeastern suburb of Kampala, known as Luzira, in Nakawa Division, approximately 11.5 kilometres (7.1 mi), by road, southeast of the central business district.[3]

The factory sits on 12 acres (4.9 ha), of well-mainicured lawns. The first plant was commissioned in 2007, with a capacity of 6 million tablets (pills) per day. A second plant is being planned on the premises, which will raise the manufacturing capacity to 18 million tablets (pills) daily.[4]

The coordinates of the QCIL pharmaceutical plant are:0° 18' 18.00"N, 32° 38' 24.00"E (Latitude:0.3050N; 32.6400E).

Quality Chemicals Limited[edit]

The company, known as Quality Chemicals Limited (QCL), was formed in 1997 by six investors:

Initially QCL focused on the importation of generic drugs from India. In 2004, QCL convinced the Indian drug maker, Cipla, to go into a joint venture with QCL and set up a pharmaceutical plant in Uganda. Ground was broken in 2005 and the factory was commissioned in 2007.[5]

New Manufacturing Plant[edit]

In 2007, the company commissioned a new pharmaceutical manufacturing plant in Luzira, a suburb of Kampala, Uganda's capital and largest city. The factory is a joint venture between QCIL, the Government of Uganda and the Indian pharmaceutical company Cipla. In 2009, TLG Capital invested an undisclosed amount of money in the project.[6] Subsequently Capitalworks Investment Partners, a private equity firm based in South Africa also became a shareholder in the pharmaceutical plant.

Besides manufacturing the triple-combination ARVs, the new factory will manufacture the new antimalarial drug Lumartem, containing artemisinin and lumefantrin. Lumartem has less drug resistance than some of the commoner antimalarials like Chloroquine. The new plant is estimated to cost about US$38 million.[7] In February 2010, the Government of Uganda divested from the new pharmaceutical plant by selling its shares, "at cost" to Quality Chemical Industries Limited. The transaction was valued at approximately US$5 million.[8]

In February 2011, the owners of the pharmaceutical factory announced an US$80 million expansion to the production line, to include increased production of antiretroviral and antimalarial medication.[9] In April 2012, British media reported that QCIL was in the process of expanding its manufacturing capacity fourfold. The factory has received a stamp of approval of its processes and products from the World Health Organization. The products will be initially marketed to the Eastern African countries of Burundi, Democratic Republic of the Congo, Kenya, Rwanda, Southern Sudan, Tanzania and Uganda.[10]

Ownership of Pharmaceutical Plant[edit]

As of February 2011, the shareholding in the pharmaceutical plant is as depicted in the table below:[11]

Shareholding In QCIL Pharmaceutical Plant
Rank Name of Owner Percentage Ownership
1 Cipla of India 41.80
2 Quality Chemicals Limited of Uganda 41.80
3 Capitalworks Investment Partners of South Africa 08.20
4 TLG Capital of the United Kingdom 08.20
Total 100.00

Governance[edit]

The Chairman of the Board of Directors of QCIL is Francis X. Kitaka, the first person in East Africa to train as a biochemist.[12] The Managing Director of QCIL is Emmanuel Katongole.[13][14]

See also[edit]

References[edit]

External links[edit]

Coordinates: 00°18′18″N 32°38′24″E / 0.30500°N 32.64000°E / 0.30500; 32.64000