Cipla partnership plans $50 million expansion in Uganda

A partnership between Quality Chemical Industries and Cipla is preparing to expand a manufacturing operation in Luzira, Uganda, where it makes HIV drugs.

The plant was recently approved by the World Health Organization, reports AllAfrica. The current plant employs about 250, and makes about 6 million tablets a day. It is preparing to ship a $13 million order of drugs to Kenya. With WHO approval and a growing market, the two are preparing to invest $50 million to expand the facility and triple production.

Africa holds potential for growth for global drug manufacturers but there are tremendous challenges and most are targeting the most developed areas like South Africa or proceeding very carefully with small projects and partnerships.

While the Quality Chemical plant is a modern facility, reports AllAfrica, the local market can't supply everything that is needed. It reports that while 60% of raw materials are available in Africa, a plant product like Artemisia must first be exported to India for processing. A third phase of the project envisions an API plant that can process some of those raw materials onsite.

- read the AllAfrica story

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