{UAH} ARVs: Quality Chemicals considering relocating to Rwanda

ARVs: Quality Chemicals considering relocating to Rwanda

Written by URN

Last Updated: 02 July 2015

Staff of Quality Chemicals sorting drugs

Cipla Quality Chemical Industries Limited (CQCIL), a local drug manufacturing firm is considering relocating to Rwanda citing limited market for its drugs. Quality Chemicals produces generic anti-retroviral (ARVs) and anti-malarial drugs.

 The resolution by the company follows the failure by government to provide market for the drugs produced by the company. In December 2005, Quality Chemicals signed an agreement with government to construct a factory that would manufacture ARVs and anti-malarials to be sold cheaply on the local market.
 
For seven years, government would buy all ARVs and anti-malarial drugs from Quality Chemicals. However, Frederick Mutebi-Kitaka, CQCIL's Executive Director in charge of Finance told the HIV/Aids Committee of parliament that government has not kept its end of the bargain to give the company monopoly for all its public sector requirements.

Kitaka says the company currently competes with donors like Global Fund and the United States President's Emergency Plan for AIDS Relief (PEPPFAR), which outsource 80 percent of the drugs on the market.

He says with government failing to convince donors to purchase the drugs locally, Cipla, which has a 52 per cent stake may opt out of the market to countries like Rwanda that has expressed interest in having it set up there.  

Nevin Bradford, the company's Chief Executive Officer, says they haven't fully penetrated the Ugandan market due to the roadblocks in policy. He says Quality Chemicals has the capacity to supply adequate ARVs and antimalarial drugs to the whole continent.

However, Dr Medard Bitekyerezo, Mbarara MP questioned the pricing of the drugs. Bitekyerezo suspects that donors could be rejecting their bid due to the high prices charged on the drugs.

But Kitaka explained that the drugs imported by the donors are of lower quality, hence cheaper to purchase.

The committee is expected to meet with the Ministry of Health and National Drug Authority to clarify on the agreement signed between government and the company.
 

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