- Financial results released on Sep.01 by the drug maker, Cipla Quality Chemicals Ltd reported more than 50% drop in annual losses.
- Losses dropped from Shs23.07bn for the year ended March 2020 to Shs 10.5bn for the year ended March 2021.
Financial results released on Sep.01 by the drug maker, Cipla Quality Chemicals Ltd, Uganda reported a more than 50% drop in annual losses. Losses dropped from Shs23.07bn for the year ended March 2020 to Shs 10.5bn for the year ended March 2021. The report stated that due to non-payments from the Zambian government for the drugs supplied, increase in general and administrative expenses as well increase in finance costs, the company will not be able to pay dividend to its shareholders for the second consecutive year.
According to a spokesman of the company, Cipla has a receivable from Zambia government worth Shs42.9billion that was fully impaired after recording an additional impairment allowance of Shs9.1 billion in the current period. Though the Zambian government continued to acknowledge this obligation to the company, payment has remained as outstanding.
The company also reported an overall increase in general and administrative expenses by 41% mainly attributed to increasing sales promotion efforts to support the aggressive expansion drives, enhancement of the staff medical scheme and normal salary adjustments. COVID-19 safety-related procedures also contributed to the escalation of the cost.
Cipla’s share price on the Uganda Securities Exchange has been trading at an average of Shs100 down from Shs 256.5 per share during the IPO in 2018. The primary focus of Cipla established in 2005, is on the production of quality World Health Organisation pre-qualified first-line treatments for HIV/AIDS and Malaria. Two first-line WHO-recommended therapies for Hepatitis B are also produced by the company. It has also got regulatory approval for the new first-line triple combination ARV therapy for males, tenofovir lamivudine dolutegravir from Uganda’s National Drug Authority (NDA).
