Tag: Fidson Healthcare Plc

  • Fidson, pharmaceutical company to boost local drug production

    Fidson, pharmaceutical company to boost local drug production

    Fidson Healthcare Plc has deepened its strategic alliance with Japan’s Ohara Pharmaceutical Company at the Ninth Tokyo International Conference on African Development (TICAD9), a platform that fosters stronger partnerships between Japan and Africa.

    Fidson’s delegation, led by Managing Director, Mr. Abiola Adebayo, with Finance Director, Imokha Ayebae, and Business Development and Marketing Director, Oshoke Ayebae, unveiled details of the partnership. Ohara will support Fidson’s capital raise while offering strategic guidance from Japan’s pharmaceutical expertise. The collaboration will enhance Fidson’s capacity to produce more specialised drugs for diverse diseases.

    Adebayo described the development as a milestone in Fidson’s journey, noting that the partnership reflects confidence in the company and underscores a shared commitment to advancing healthcare in Africa: “Putting this alliance on a world stage emphasises the fact that Fidson-Ohara collaboration has come to stay.” he said.

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    The foundation of Fidson-Ohara partnership was laid in July, 2019, following Fidson’s rights issue. The core of this collaboration was transfer of expertise, and innovation from Ohara, a company specialising in medicines for critical therapeutic areas, particularly pediatric oncology and generic medicines. The partnership was a direct response to Nigeria’s over-reliance on imported medicines. Adebayo said:

    “By leveraging Ohara’s technical know-how and experience, the partnership has strengthened local production capacity, improved quality and affordability of medicines, and ultimately reduced the country’s dependence on foreign supplies.”

    This deeper commitment by Ohara will accelerate transfer of more advanced production processes and research capabilities, enabling Fidson to produce a wider range of high-quality, local medicines, including specialised drugs. This, combined with access to Ohara’s portfolio of innovative drugs, will position Fidson to meet demand for life-saving medicines in Africa. “This intention by Ohara is a welcome idea to scale up Fidson’s operations. It will enable Fidson to expand into areas critical to Africa’s healthcare needs like API production, and other innovations pioneered by Ohara.” Adebayo said.

    The announcement at TICAD9 underscores the unwavering commitment of both companies to this strategic partnership. For Ohara, it provides significant expansion across the dynamic African market, while for Fidson, it reinforces its position as the leader in Nigeria’s pharmaceutical industry, and a force to reckon with In Africa. In his statement, the President and CEO of Ohara Pharmaceutical Co., Ltd., Dr. Seiji Ohara said: “Since the beginning of our collaboration, Ohara and Fidson have built a sincere and trusting relationship through numerous meetings and visits. We at Ohara are delighted to have now signed a Memorandum of Understanding based on this trust, allowing us to explore ways to further strengthen our relationship with Fidson. Going forward, we hope to contribute to the realization of two key values— the growth of Fidson’s business and the mission of saving more lives— by maintaining our excellent partnership and connecting them with the latest innovations and technologies.”

  • Fidson launches N30b expansion plan to grow market share

    Fidson launches N30b expansion plan to grow market share

    Fidson Healthcare Plc has unveiled plans to raise N30 billion in fresh capital as part of a bold strategy to expand its operations, strengthen its market position, and deepen its impact in Nigeria’s pharmaceutical industry. The fundraise, which will be executed through a rights issue or other equity-based methods, was approved by shareholders at the company’s 26th Annual General Meeting (AGM) held last Thursday.

    According to the company, the capital injection will be deployed to increase production capacity, support research and development, and introduce new innovative products that address critical healthcare needs across the country. The move is also expected to drive Fidson’s expansion into other African markets. Speaking at the AGM, Fidson’s Director of Finance, Mr. Imokha Ayabae, said the approval marked a significant milestone for the company. “This N30 billion mandate is pivotal for our future. It provides us with the financial agility to pursue strategic initiatives, including capacity expansion, product innovation and market penetration, which will solidify our leadership position in the healthcare sector,” Ayabae explained.

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    He added that the company is poised to leverage the funds to improve operational efficiency and enhance its footprint across Nigeria and beyond. “We are focused on long-term value creation, and this new capital will help us meet the evolving needs of consumers while delivering strong returns to our shareholders,” he said.

    In addition to the capital raise, the AGM also marked a significant leadership transition for the company. Fidson’s founder and Managing Director, Dr. Fidelis Ayebae, formally stepped down after over three decades of visionary leadership. His successor, Mr. Abiola Adetunji Adebayo, who has been part of the company’s leadership team, will assume the role of Managing Director/CEO effective August 1, 2025. To reward shareholders, the board approved a dividend of N1.00 per 50 kobo ordinary share, amounting to a total of N2.295 billion. This dividend was declared from the company’s earnings per share of N2.52 for the financial year ended December 31, 2024.

  • Revamped PHCs reducing burden on tertiary hospitals – Fidson boss

    Revamped PHCs reducing burden on tertiary hospitals – Fidson boss

    The incoming managing director of Fidson Healthcare Plc, Mr. Biola Adebayo, has said the ongoing revitalisation of Primary Healthcare Centres (PHCs) across the country is already yielding significant results, reducing pressure on secondary and tertiary health facilities and improving access to affordable medicine for millions of Nigerians.

    In an exclusive interview with The Nation, Adebayo commended the federal government for its increased funding of PHCs and applauded the role of state governments, particularly in the north, for stepping up healthcare investments.

    “Healthcare is on the concurrent legislative list, yet many people think it’s solely the federal government’s responsibility. Thankfully, states are now taking ownership. Fourteen northern states now have functional Drug Management Agencies (DMAs) that procure medicines directly from manufacturers, cutting out middlemen. That guarantees affordability, quality, and a reliable supply chain,” he said.

    Adebayo noted that this transformation is driving local demand and enabling domestic pharmaceutical manufacturers, like Fidson, to now supply nearly 50 per cent of Nigeria’s medicines, up from 30 per cent just a few years ago.

    “Access to basic treatment at the primary level means fewer people are clogging general and teaching hospitals for illnesses like malaria, which accounts for over 60 per cent of cases in most facilities,” he added.

    He cited Lagos State as a model, saying it had led efforts to optimise PHCs, with other states like Osun also following suit by reviving previously abandoned centres. 

    According to him, government partnerships with DMAs and pharmaceutical companies are creating a healthier and more productive population.

    He also praised former Health Minister, Prof. Isaac Adewole, for piloting a model that ceded PHCs to private doctors, though he believes the current model, where states directly employ doctors, is more sustainable.

    “The revitalisation of PHCs is no longer a dream, it is already happening. States are signing direct supply agreements with manufacturers, backed by legislation. These structures are helping ensure the success of drug-revolving funds and limiting interference,” he said.

    Adebayo also highlighted the role of the World Bank-supported Universal Health Coverage (UHC) programmes, which provide counterpart funding to states that meet specific criteria like stocking PHCs with essential medicines.

    “This government inherited huge gaps in the health sector, but the progress is visible. Citizens are beginning to feel the impact of governance where it matters, health, roads, and education,” he said.

    On the quality of pharmacy education, Adebayo decried the growing trend of “alternative to practicals” in universities, where students only observe demonstrations due to lack of equipment.

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    “Today’s pharmacy and science graduates often lack hands-on training. When they get to the industry, we essentially start from scratch. We spend the first 12 to 18 months retraining them,” he said.

    He lamented that, unlike in his time as a student, access to operational equipment is now rare. “We have bright young Nigerians, but they are under-equipped. It’s not just pharmacists, engineers come out not knowing how to use basic tools like spanners.”

    According to him, Fidson has had to invest heavily in internal training systems to fill this gap. “We used to need nine experts for a particular machine. Today, with our internal capacity, two are enough to run the system and train others. Our teams now operate 24/7, with some becoming industry experts in their own right.”

    He called on both government and the private sector to prioritise technical education and workforce development. “It’s not enough to build classrooms. We must equip them and train lecturers too. The future of healthcare and manufacturing depends on it.”

    Adebayo expressed optimism that, with continued collaboration between government and industry stakeholders, Nigeria’s health sector can become self-sustaining and a major employer of labour.

  • Fidson records N16.23b turnover

    Fidson Healthcare Plc has recorded 15 per cent growth in sales in 2018 as the company continues to grow its business.

    The company’s audited financial report showed that turnover rose from N14.06 billion in 2017 to N16.23 billion in 2018.

    Managing Director, Fidson Healthcare Plc, Fidelis Ayebae, said the increase in revenue was as a result of volume growth from expanded production at the company’s new World Health Organisation (WHO)-compliant factory.

    He said the plant, which was commissioned in 2016, is a key driver of the company’s growth strategy and local sourcing initiatives, noting that the new factory is one of the most sophisticated manufacturing facilities in Africa and is well positioned to meet the rising demand for medicines in Nigeria and the broader West-African region.

    He noted that the growth in revenue was achieved in spite of a challenging year for the pharmaceutical industry, which saw some therapeutic substances being banned by the government and costs increasing on key production inputs.

    According to him, these challenges made the company’s cost of sales to go up by over 40 per cent from N6.90 billion in 2017 to N9.91 billion in 2018. Other factors that affected its cost of sales include increased logistics cost for imported materials due to congestion at the seaports, which drove up the cost of transporting goods from the ports by 1000 per cent.

  • Fidson holds community outreach against malaria

    TO commemorate the World Malaria Day and as part of the effort to join the global community to ‘Beat Malaria’, Fidson Healthcare Plc has called on Nigerians to embark on nationwide preventive actions against malaria threat.

    This call was made by Fidson Healthcare Plc Marketing Manager, Mr Friday Enaholo at the Community Health Outreach at Odonla Primary Healthcare Centre, Ikorodu, Lagos State, as part of the company’s activities to increase awareness and promote advocacy against malaria in Nigeria, to commemorate the World Malaria Day

    Speaking at the event, Mr Enaholo advised Nigerians to fight malaria by preventing infection through the use of insecticide-treated mosquito nets (ITNs) and indoor residual spraying (IRS). He also identified improved sanitation and avoidance of stagnant bodies of water as other veritable means of controlling malaria.

    Mr Enaholo expressed concern over malaria scourge in Nigeria, citing the 2015 Nigeria Malaria Indicator Survey on statistics credited to the National Malaria Elimination Programme, the Federal Ministry of Health, which estimated that about 110 million clinically diagnosed cases of malaria and nearly 300,000 malaria-related childhood deaths occur each year.

    The report also indicated that in Nigeria, malaria is responsible for approximately 60 per cent of out-patient visits, 30 per cent of admissions, and also believed to contribute up to 11 per cent of maternal mortality, 25 per cent of infant mortality, and 30 per cent of under-5 mortality.

    He further explained that as a leading pharmaceutical company, Fidson is committed to the fight against malaria in Nigeria, primarily through the several enlightenment campaigns in communities as well as the provision and distribution of high-quality anti-malaria drugs at affordable prices. “We are aware that there is a direct link between poverty and incidence of malaria. Therefore, the cost of therapy must be affordable for patients to reduce the economic burden of malaria on them. This is one major role that we play as a company,” he said

    Fidson Product Manager, Anti-malarial,  Mr Adesoji Fasanya, said the World Health Organisation (WHO)’s report on Malaria in Nigeria is very alarming, as it showed that Nigeria has the largest volume of malaria cases recorded in any single country globally. Mr Fasanya further said a bigger concern is the fact that malaria is preventable, but most people, especially those living in rural or semi-urban areas of developing countries, don’t even know how to prevent it.

    “This is why as a responsible indigenous pharmaceutical company, we are actively participating in this global campaign by enlightening Nigerians, through all possible communication channels, on how they can prevent the spread of malaria”.

     

  • Fidson grows net profit by 22% in Q3

    Fidson Healthcare Plc grew net distributable profit by 22 per cent in the third quarter as the healthcare company optimized marginal sales growth with higher margins.

    Interim report and accounts of Fidson Healthcare for the third quarter ended September 30, 2014 showed that while turnover increased by about four per cent from N7.24 billion in third quarter 2013 to N7.5 billion in third quarter 2014, net profit rose by 22 per cent from N381.53 million to N466.36 million. Profit before tax had risen from N545.04 million to N685.83 million. Gross profit also rose by six per cent N4.1 billion, largely as a result of an improvement in the cost of sales, which dropped to 45.1 per cent as against 46.7 per cent as at half-year 2014.

    The management of the company said its growth trend evidenced its ability to maintain its products’ market share in key therapeutic areas.

    “This is driven by innovative products, strategic marketing approaches, robust distribution channels as well as relentless efforts in ensuring quality and various anti-counterfeiting initiatives,” Fidson stated at the weekend.

    The management reassured that the company is also well positioned for huge growth opportunities, following the projection of a significant improvement in sales upon the completion of its ultra-modern WHO Good Manufacturing Practice (GMP) compliant plant. The plant is proposed to begin operation in 2015.

     

  • Fidson grows sales by 28%

    Fidson grows sales by 28%

    Fidson Healthcare Plc grew its top-line by 28 per cent in 2013 as the healthcare company increased its market share.

    Key extracts of the audited report and accounts of Fidson for the year ended December 31, 2013 showed that total sales rose from N7.2 billion in 2012 to N9.2 billion in 2013. Gross profit also rose by 25 per cent from N4 billion in 202 to N5 billion in 2013.

    The increase in sales and better management of operational costs led to higher gross margins, which saw operating profit rising from N854 million to N1.3 billion

    However, profit before tax dropped considerably from N540 million in 2012 to N250 million in 2013. Profit after tax also followed the downtrend, dropping from N207 million to N155 million.

    Management of the company indicated that the decline in pre and post tax profits was due to impairment loss incurred on Fidson Products Limited, an associate company that was adversely affected by the ban on importation of diapers, the major product of the company.

    However, other comprehensive income majorly from actuarial gains at N42 million against a loss of N19 million the previous year moderated total comprehensive income for the year to N197 million, up from N188m in 2012.

    Fidson’s balance sheet grew by 15 per cent from N10.8 billion in 2012 to N12.4 billion, mainly resulting from the company’s investment in the Biotech plant.

    Management of the company said they expected better performance this year citing increase in pre-tax profit in the first quarter. Profit before tax for the first quarter stood at N283 million as against N269.6 million recorded in corresponding period of 2013.

    Fidson recently said it was rounding off pre-offer process to issue a N2 billion bond to partly refinance its new multi-billion Naira World Health Organisation (WHO)-standards manufacturing complex.

    Operations Director, Fidson Healthcare Plc, Mr. Biola Adebayo, said the company is concluding arrangements for the bond issue noting that the bond may hit the capital market next month.

    According to him, the net proceeds of the bond issue would be used to refinance some existing bank loans with a view to consolidate the bank loans into a more amenable medium term bond issue. This is part of the company’s financing mix strategy to ensure that the benefits of its expansion impact on shareholders’ returns.

     

     

    Adebayo said the company has spent N7 billion on the new manufacturing plant and all the equipment and machines are currently on site. The company has so far financed the new 7.5 acres-manufacturing plant with internally generated revenue and loans from banks.

    He said the new manufacturing plant, which will aggregate the existing manufacturing lines from other existing plant and add a new line for intravenous products, will likely be commissioned in the third quarter of 2014.

    He projected that the new business line of intravenous add between N3 billion and N4 billion to the company’s turnover in 2015.

    He said the new manufacturing plant is a game-changing investment that will further enhance Fidson’s leadership position in the healthcare industry and position it in good stead to compete for global healthcare funds and orders.

    He said the new plant would further enhance the local manufacturing capacity noting that the company’s current product profile of 60-40 importation/manufacturing ratio to 40-60, shifting the company’s operations towards local manufacturing.

    He added that the new manufacturing plant, which is being built to WHO standards and certification, will enable Fidson to engage in contract or tall manufacturing for many global pharmaceutical companies, which want to manufacture their products in Nigeria but do not want to establish full-fledged manufacturing plants.

    Adebayo noted that the prospects for the company’s growth is huge pointing out that there are no more than three companies manufacturing its new line of intravenous products and the volume needed by the country is so huge.

     

     

  • Playing in the big league

    Playing in the big league

    •Fidson aims for global honour

    With a state-of-the-art biotech plant, Fidson Healthcare Plc, an indigenous company, is set to obtain the World Health Organisation (WHO) prequalification to join the league of global pharmaceutical players in bulk supply. OYEYEMI GBENGA-MUSTAPHA writes.

    It aims to be a world leader in its field. Fidson Healthcare Plc has acquired 7.5 acres of land in Sango Otta, in Ogun State and a N7 billion bio-technology plant to realise its dream of playing in the big league in the pharmaceutical sector.

    The biotech project machine cost the company N800 million, land and building, N200 million.

    There are many reasons the company wants to ensure the success of the biotech plant. Majorly, it is to get the World Health Organisation (WHO) pre-qualification to take care of the needs of foreign pharmaceutical companies, which prefer to have their products made in Nigeria to enable them monitor the quality before distributing to other African countries.

    During a media tour of the biotech plant, Fidson’s Operations Director Biola Adebayo said it would drive down prices of certain pharmaceutical products, which are in high demand and are overpriced.

    But, this is not the first time Fidson has done that. The production of Virex Anti-retroviral for people living with HIV/AIDS, Adebayo said, was a huge success. “That feat made the company the first healthcare company in West Africa and in sub-Saharan Africa to produce an Anti-retroviral drug which has been certified effective and safe for use by the National Agency for Food and Drug Administration and Control (NAFDAC),” he said.

    He continued: “Virex is known to be the affordable anti-retroviral drug available in the Nigerian market. We drove the price down by more than 75 per cent because only one pharmaceutical company had the monopoly of supplying the antiretroviral drugs used by persons living with HIV/AIDS, until Fidson Healthcare commenced its manufacturing. Virex has the capacity to prevent transmission of HIV from mother to child as it comes in five variants for children and adults. “This breakthrough in the production of anti-retroviral drug is the inspiration behind our resolve to put our arsenal together to obtain the WHO-prequalification and with that the beginning of many good things to come from the company.”

    Part of the goals the biotech plant will achieve is to also beat down the cost of infusion Adebayo said: “We have conducted a research and found that upon admission, patients always would require infusion, otherwise called drip so as to prevent their system from shutting down. Currently such are being manufactured by a few companies.

    “About five per cent of the Nigerian population; representing those who are in the hospital, use the infusion. As such, the demand is very high and more than the supply. With our new biotech plant, we intend to break this monopoly by injecting standards into the production, as well as driving down the price to make it more affordable, just like with the antiretroviral. Our corner piece on production is based on meeting three basic needs of affordability, availability and accessibility.”

    “Another goal the biotech plant is set to meet is reversing the trend of importing 60 per cent of its products while the company produces the remaining 40 per cent locally. We intend to reverse this trend by 2015, by manufacturing 60 per cent of our drugs locally and sourcing the remainder through importation. Indirectly, we would be creating job opportunities. Next to agriculture, manufacturing is the second largest employer of labour; hence, by increasing local manufacturing, Fidson Healthcare will make more jobs available to Nigerians, while it will also be seen as being in tune with the transformation agenda of the government,” said Adebayo.

    Already the plant has started attracting some multinational interests, as leading multinational pharmaceutical companies that command global attention have started visiting it to inspect and discuss areas of interest and collaborations.

    Adebayo threw more light on this: “Some big global players in the pharmaceutical industry that once dominated Nigerian, West Africa and sub African markets, but left the nation’s shores have started contacting us. They are not interested in providing motorable roads, light and the likes for our company. Their sole interest is to see how we can manufacture their products for them bearing in mind the standard of quality of such products.

    “Sanofi from France sent a team to us. The head of the delegation was overwhelmed by what he saw here. The team recommended us and already the company has sent a list of some of their drugs, which we can help produce, to us. We at the stage of fine-tuning cost of pricing, packaging and delivery. So also is Glaxo among others. A lot of those companies are coming back to West Africa because of this Biotech plant,” he said.

    He continued: “They want to be spared the headache of setting up a manufacturing plant, tied with its running cost. They only want to produce. So this plant is okay for them. Samples have been taken from our array of products both in the pharmaceutical and fast moving household products as anti-infective, anti-arthritis, endocrinology, gastro-intestine, anti-retroviral, anti-malaria, cardiovascular, anti-depressant, pain relievers, haematinics, cough expectorants and consumer goods, for analyses by some of these multinationals and we got a pass mark, when their results were compared with ours.”

    Adebayo said though it had been a painstaking effort, based on interest, “since the time we visited WHO to indicate our interest in obtaining its prequalification, it gave us insight on how it works”. “That the organisation is run on donour fund and strictly work on what are budgeted for. So, when we invited it to come and inspect this plant, we were told there was no fund for such. NAFDAC stepped in and said it will pay for logistics. NAFDAC went ahead to task some other companies to ginger up for WHO pre-qualification. So that when the team visits, it would be able to inspect all of us at once.

    “The Consultants came and we passed all-documentation, production, but for facility. We are now under the radar of WHO. And that is why we are intensifying effort to get the facility completed and functional to international standard. Facility carries about 20 per cent of the mark. The others are based on processes, documentation and system, areas which we are,” he said.

    He added: “We are now putting this structure, which WHO prescribed. We are now number three on the radar watch of WHO in Nigeria. Our production lines are: infusion; tablets, injectables and intravenous fluids lines. Most of these lines are automatic, no human involvement, to eliminate contamination. Fidson wants to make Nigeria proud because it has paid its dues to all these international donour agencies. Yet Nigeria economy hardly benefits from such. By obtaining this prequalification, Nigeria would reap its reward, economically, in foreign exchange (Forex), because every year, billions of US dollars worth of medicines are purchased by international procurement agencies for distribution in resource-limited countries.”

    Prequalification, he said: is intended to give these agencies the choice of a wide range of quality medicines for bulk purchase. “So, should an indigenous company obtain such qualification the country would be far better for it,” he said.

    The Lead Consultant, of the plant, Mr More Rangnath said WHO prequalification of medicines is a service provided by WHO to assess the quality, safety and efficacy of medicinal products. “I had been involved in setting up most of the plants that obtain that prequalification and this is no exemption in term of standard,” he said.