Cinpharm laboratories starting-up, raise social capital by 1.2 billion

Compagnie industrielle pharmaceutique (Cinpharm SA) plans to increase its social capital by 1.278 billion FCFA. This was announced in a press release on January 12, 2015 by its CEO, Célestin Tawamba.

To do this, Mr. Tawamba explained that a capital subscription period for the pharmaceuticals and medical consumables company will run from January 20-27, 2015.

Cinpharm’s fundraising effort should enable the company to address its needs using working capital estimated at 3 billion FCFA, as indicated in an October 2013 edition of Jeune Afrique. Indeed, the financial difficulties the company has been encountering, the company that rose-up out of Rhône-Poulenc’s ashes in 2010, obliged its leadership to cease all activity in May 2013.

The false start was due to errors combined with the defection of Cinpharm’s technical partner, the Indian company, Cipla, one of the world leaders in the production of generic pharmaceuticals.

The two companies are currently in court. “From the start, we opened a letter of credit of 1 billion FCFA [1.5 million euros] to Cipla. On arrival, 80% of the stock was unusable,” laments Célestin Tawamba in the October 2013 edition of Jeune Afrique.