By Martin Luther Okech and Ashita Chopra
After a rough ride over the last two years, Cipla investors have reason to be optimistic.
The new line of medicine and the planned launch of new export markets are expected to boost the company’s financial strength.
Cipla Quality Chemicals (Ciplaxi), which is having trouble with its share price on the Uganda Securities Exchange (USE), is expected to suffer losses for the year ending March 31, 2020 as procurement was delayed by the Zambian government.
The company’s gross margin was largely affected by changes in product mix in orders from international donor agencies.
Siplaxi traded at Shs101 on May 5 and Shs102 per share on May 6. This is lower than its initial public offering price of Shs256.5 per share in September 2017.
Ciplaxi shareholders reported a loss in the share price of Shs154.5 last year due to a reduction in the company’s profits without paying any dividends to them.
In an interview yesterday, Mr Nevin Bradford, chief executive officer of Ciplaxi, said the company’s financial position would benefit in the coming years.
“We have started the preparation of chloroquine and covid-19 treatment, and we hope that our profit will improve significantly in the coming days,” he said.
Its share profit fell to Shs6.685 billion from Shs44.627 billion in 2018, its executives said in the first half of 2019 financial results, indicating a shift in revenue structure following a global fund cut on anti-malaria drugs, along with delays paid by the Zambian government. This is likely to impact profitability by 2019.
Crested Capital’s Chief Executive Officer, Mr. Robert Robert H Baldwy told the Daily Monitor yesterday that the company’s own statement said that Cipla’s challenges revolved mainly around Zambia and allowed for non-payment.
. (Tagto Translate) Cipla Quality Chemical Industries (T) Ciplaxi (T) Uganda Securities Exchange (T) USE