Uganda’s Public Accounts Committee (PAC) has questioned the government’s decision to inject more than UGX 723 billion into Dei BioPharma Ltd without first conducting a valuation, only to later discover the company was worth just UGX 2.05 billion.
The concern was raised by Butambala County MP Muwanga Kivumbi on September 9 while presenting PAC’s report on the Auditor General’s review of the Consolidated Financial Statements of Government and Treasury Operations for June 2024. “It defeats investment logic for the government to invest over UGX 723 billion in a company valued at only UGX 2 billion, and in return get just 9.4% minority shareholding. Nowhere in finance does that make sense,” Kivumbi said.
Parliament approved a UGX 1.1 trillion supplementary budget in April 2024, of which UGX 578.4 billion was earmarked to help Dei BioPharma clear debts and meet operational needs. Combined with earlier allocations, government’s total investment reached UGX 723.4 billion. Auditor General Edward Akol reported that no valuation or due diligence was conducted prior to the investment, and that his office was denied access to critical documents, including the shareholders’ agreement.
Civil society groups have condemned the lack of transparency. Timothy Chemonges, executive director of the Centre for Policy Analysis (CEPA), warned that secrecy undermines public trust and Parliament’s oversight role. PAC has recommended that the Secretary to the Treasury be held liable for flouting audit provisions and urged the Ministry of Finance to work with the Attorney General and Dei BioPharma to secure the purchase agreement and share certificates.
Despite the scrutiny, Dei BioPharma continues to make headlines with ambitious plans to manufacture cancer drugs in Uganda. Speaking on the sidelines of the 5th Uganda Conference on Cancer and Palliative Care, company founder Mathias Magoola said the company has signed agreements with the government to produce 25 drug products, including small molecules and biologics for lung, kidney, and other cancers.
Magoola said the company has secured patents from the U.S. Food and Drug Administration (FDA) for a vaccine targeting “cold” tumors, including certain types of breast, lung, and prostate cancers. He also said the company would develop monoclonal antibody therapies for cancer, citing a recent FDA waiver of clinical efficacy studies for biosimilars, which could reduce development costs by more than 90% and accelerate approvals.
Uganda Cancer Institute (UCI) Executive Director Dr. Jackson Orem confirmed that early discussions are underway to include Dei BioPharma’s products in clinical trials. “While Dei BioPharma is exploring early phase therapies, they will need specialized clinical trial units to move these innovations toward becoming standard care,” Orem said.
Magoola’s company has previously pledged to produce generic versions of HIV drug Lenacapavir locally at a fraction of the U.S. cost, and now hopes to make cancer treatment more affordable in Uganda.
PAC’s report, combined with Dei BioPharma’s high-profile drug development plans, has raised both scrutiny and optimism over government investments in local pharmaceutical capacity.
