The Nation Newspaper

Tag: Fidson Healthcare

  • Fidson Healthcare assures shareholders of sustained growth

    The board of Fidson Healthcare Plc has assured shareholders that ongoing expansion and business growth initiatives would continue to strengthen the performance of the healthcare company in the years ahead.

    Addressing shareholders at the Annual General Meeting (AGM) in Lagos, Chairman, Fidson Healthcare Plc, Mr. Segun Adebanji, said the company has continued to strengthen its operating facilities through expansion and retooling.

    According to him, old machines and equipment have been replaced with modern ones as the company repositions through business realignment and useful industry collaboration in order to take advantage of the growth opportunities in the market.

    “We are currently expanding our capacity utilization through increased production and contract manufacturing for other notable companies in the industry,’’ Adebanji said.

    He pointed out that the company has also continued to leverage on its World Health Organisation (WHO)-certifiable factory as it recently entered a partnership with GlaxoSmithKline (GSK) that will see it manufacture for GSK’s West African operations going forward.

    He added the strategic partnership and other market penetration strategy and cost optimization were some of many initiatives to sustain growth and return value to shareholders of the company.

    He noted that with the conclusion of the company’s rights issue earlier this year, the company has already taken steps to improve its financial structure in line with the purpose of the new capital raising, which was aimed at refinancing expensive debt and working capital funding in a bid to improve margins.

    At the meeting, shareholders approved payment of a dividend per share of 15 kobo. The company’s turnover rose by 15 per cent from N14.06 billion in 2017 to N16.23 billion in 2018. Profit before tax however dropped to N160.9 million in 2018 as against N1.6 billion in 2017. The decline was attributed to increased cost of sales margin from 49 per cent in 2017 to 61 per cent in 2018 and 92 per cent increase in finance cost.

     

  • Fidson Healthcare gets N2.3b equity from shareholders

    Fidson Healthcare Plc has successfully raised about N2.345 billion from its shareholders to recapitalise its operations. The healthcare company had set out to raise N3 billion through a rights issue to existing shareholders, but the offer was undersubscribed by N655 million.

    Fidson Healthcare had offered 750 million ordinary shares of 50 kobo each through a rights issue to existing shareholders at N4 per share. The rights issue was pre-allotted on the basis of one new ordinary share for every two ordinary shares held as at December 28, 2018.

    Regulatory filing however showed that shareholders subscribed to 586.36 million ordinary shares of 50 kobo each at N4, implying a subscription level of 78.18 per cent. The company has listed the additional shares at the Nigerian Stock Exchange (NSE), thus increasing its outstanding paid up shares from 1.5 billion ordinary shares of 50 kobo each to 2.086 billion ordinary shares of 50 kobo each.

    Fidson Healthcare had planned to raise N4.5 billion new equity funds through a rights issue of 900 million ordinary shares of 50 kobo each to existing shareholders at N5 per share. However, the company decided to reduce the offer size and offer price.

    Read Also: Ebola: Two health workers killed in DR Congo

    Chairman, Fidson Healthcare Plc, Mr. Segun Adebanji, said the net proceeds of the rights issue would be used to refinance some expensive debts, strengthen the working capital position of the business and fund some strategic capital expenditure.

    According to him, the capital injection from the rights issue would enable the board and management to reposition the business in order to take advantage of visible growth opportunities.

    He praised shareholders for their continued support, assuring that the company has a promising future.

    “Together we will continue to reap the bountiful rewards of our investment in the year ahead,” Adebanji said.

    Managing Director, Fidson Healthcare Plc, Mr Fidelis Ayebae, said the company would take advantage of the net proceeds from the rights issue to inject fresh working capital into the business in order to maximise the opportunities that exist in the market.

    According to him, a revenue growth of over 20 per cent is projected for 2019, with increased focus on growing its ethical product segments. The business development work being done in hospitals to enhance the patronage of Fidson brands is also expected to increase demand.

    He said about 20 new products will be introduced into the market in 2019 to take advantage of the available capacity at the new factory.

    He added that further cost savings will be generated by directly importing key raw materials, taking advantage of the Central Bank of Nigeria (CBN) window for manufacturers, and renegotiating with its suppliers.

    He said the company is also switching its energy source from diesel to gas, noting that Fidson expects that through its cost savings initiatives, to reduce production costs and increase gross margins significantly in 2019.

    “The prospects look good for Fidson in the near-term, enabling the company to cement its leadership position in the pharmaceutical industry,” Ayebae said.

  • Fidson Healthcare reduces offer size, price

    Fidson Healthcare Plc has reduced the size and price of its planned rights issue as the healthcare company considers the prevailing market situation.

    Fidson had planned to raise N4.5 billion new equity funds through a rights issue of 900 million ordinary shares of 50 kobo each to existing shareholders at N5 per share.  The rights issue had been pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5, 2018.

    Fidson has now secured approval of the Securities and Exchange Commission (SEC) to revise the offer size and price. Fidson will now be offering 750 million ordinary shares of 50 kobo each at N4 per share. The rights issue will now be pre-allotted on the basis of one new ordinary share for every two ordinary shares held as at December 28, 2018. Authorities at the Nigerian Stock Exchange (NSE) had earlier approved the rights issue.

    Shareholders of Fidson had indicated their willingness to support the company’s plan to raise new equity funds.

    Shareholders commended the performance of the company noting that recapitalisation would create better opportunities for the company.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu urged shareholders to pick up their rights so that the company could further expand its business.

    According to him, Fidson has shown that it is a business with a promising outlook.

    Former President, Nigerian Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan said the company’s turnover has increased tremendously.

    He noted that the reduction in finance cost enhanced the dividend payout, showing the prudence of the management and board of the company.

    Chairman, Fidson Healthcare Plc, Mr. Segun Adebanji, said the net proceeds of the rights issue would be used to refinance some expensive debts, strengthen the working capital position of the business and fund some strategic capital expenditure.

    According to him, the capital injection from the rights issue would enable the board and management to reposition the business in order to take advantage of visible growth opportunities.

    He commended shareholders for their continued support, assuring that the company has a promising future.

    “Together we will continue to reap the bountiful rewards of our investment in the year ahead,” Adebanji said.

  • Fidson Healthcare wins best practice award

    Fidson Healthcare Plc has been declared the winner of the 2018 Frost & Sullivan – Best Practice Award for Competitive Strategy Innovation and Leadership. The Frost & Sullivan Award is a global award that has been in existence for the past 15 years and it brings together top business leaders and innovators to celebrate their successes.

    The award, which was held recently in Cape Town, South Africa, recognised Fidson’s definitive competitive strategy, innovation and strong leadership in the area of pharmaceutical production and distribution in Nigeria.

    According to Frost & Sullivan, at the forefront of Fidson’s innovation and competitive strategy is the N7.5 billion state-of-the-art manufacturing plant in Sango Ota, Ogun State, the largest manufacturing facility in West Africa, designed to double the company’s production capacity, enabling it to grow sales volume and meet the rising demand for drugs in Nigeria and broader West African region.

    Beyond boosting the local economy and creating more than 300 jobs for skilled and unskilled Nigerians, the new Fidson plant is consolidating the company’s extensive manufacturing capabilities, increasing revenue growth, facilitating expansion into a new product category, and ultimately reinforcing the company’s firm position in the Nigerian pharmaceuticals market.

    Frost & Sullivan noted in its statement that the significant competitive advantage of the new Fidson’s factory is already evident after only one full calendar year in operation; when the company experienced revenue growth from N7.6 billion in 2016 to N14 billion in 2017.

    Chairman, Frost & Sullivan, David Frigstad noted that to achieve excellence in competitive strategy has never been an easy task, and it has been made even more difficult by today’s competitive intensity, customer volatility, and economic uncertainty.

    “Within this context, your (Fidson’s) receipt of this award signifies an even greater accomplishment,” Frigstad said.

    Receiving the award, Head, Business Development and Strategy, Mr Oshoke Ayebae commended Frost & Sullivan for recognizing Fidson’s contribution through its innovation and leadership in the Nigerian pharma industry.

    “Since inception in 1995, Fidson has relentlessly pursued its goal of becoming a leading player in the Nigerian pharmaceutical landscape and has built an innovative organizational framework that has helped gain dominance in the industry. We have built a structure of Innovation and Excellence around our system, process and people,” Ayebae said.

    He also noted that the award is a credible indication that the company is taking steps in the right direction assuring that the company will leave no stone unturned in ensuring that its operations are in compliance with the best practice globally

    “We, therefore, believe that this award will go a long way to boost our corporate reputation and also validate our commitment to deliver excellent quality healthcare solutions to Nigerians,” Ayebae said.

  • Stock Exchange approves Fidson Healthcare’s N4.5b rights issue

    Authorities at the Nigerian Stock Exchange (NSE) have approved the plan by Fidson Healthcare Plc to raise N4.5 billion new equity capital through rights issue to existing shareholders of the healthcare company.

    A regulatory filing at the Exchange at the weekend indicated that the Quotation Committee of the NSE approved the issuance of 900 million ordinary shares of 50 kobo each to existing shareholders of Fidson Healthcare at N5 per share.

    The rights issue will be pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5, 2018.

    Shareholders of Fidson Healthcare had in 2017 approved a plan by the company to raise N6 billion in new capital to boost its working capital and support its expansion plan. At the annual general meeting in 2017, shareholders had authorised the board of directors of Fidson Healthcare to “raise further capital of up to N6 billion through an offer whether by way of public offering, rights issue, private and special placement of shares”.

    The meeting also authorised the directors to absorb oversubscription and to convert existing loans due to any person from the company towards payment for any rights or shares subscribed for. Shareholders also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of additional 600 million shares of 50 kobo each.

    Chairman, Fidson Healthcare Plc, Mr. Felix Ohiwerei, said the new capital would be used to boost working capital that had been negatively impacted by the depreciation of Naira.

    He noted that the company’s new factory had come on stream at the tail end of 2016 and the company needs additional capital to realise the full potential and utilise the new factory to full capacity.

    Key extracts of the audited report and accounts of Fidson Healthcare for the year ended December 31, 2017 showed that turnover grew by 84 per cent N7.6 billion in 2016 to N14 billion in 2017. Cost of sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017. Pfelix-chairmanbefore tax rose from N443 million in 2016 to N1.57 billion in 2017. With this, earnings per share increased from 21 kobo in 2016 to 71 kobo in 2017.

    The financial reports showed a 53 per cent increase in total overhead including administrative and selling and distribution expenses, from N3.1 billion in 2016 to N4.7 billion in 2017, which was due to an increase in the marketing and distribution expenses.  Finance cost also increased by 45 per cent from N690 million in 2016 to N1 billion in 2017. The increase in finance cost was mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions. Despite the increase in total cost, the company recorded a 127 per cent increase in operating profit which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

    The board of directors of Fidson Healthcare however approved a 300 per cent increase in dividend payout for the 2017 business year. Shareholders will receive a dividend per share of 20 kobo for the 2017 business year, representing an increase of 300 per cent on 5.0 kobo dividend per share paid for the 2016 business year. The company had distributed N75 million as cash dividends to shareholders for the 2016 business year.

     

  • Fidson Healthcare increases dividend payout by 300%

    The Board of Directors of Fidson Healthcare Plc has approved a 300 per cent increase in dividend payout for the 2017 business year as the healthcare company grew its net profit by 238 per cent during the year.

    Shareholders will receive a dividend per share of 20 kobo for the 2017 business year, representing an increase of 300 per cent on 5.0 kobo dividend per share paid for the 2016 business year. The company had distributed N75 million as cash dividends to shareholders for the 2016 business year.

    Key extracts of the audited report and accounts of Fidson Healthcare for the year ended December 31, 2017 showed that turnover grew by 84 per cent N7.6 billion in 2016 to N14 billion in 2017. Cost of sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017. Profit before tax rose from N443 million in 2016 to N1.57 billion in 2017. With this, earnings per share increased from 21 kobo in 2016 to 71 kobo in 2017.

    The financial reports showed a 53 per cent increase in total overhead including administrative, selling and distribution expenses, from N3.1 billion in 2016 to N4.7 billion in 2017, which was due to an increase in the marketing and distribution expenses.  Finance cost also increased by 45 per cent from N690 million in 2016 to N1 billion in 2017. The increase in finance cost was mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions. Despite the increase in total cost, the company recorded a 127 per  cent increase in operating profit, which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

    The company management stated that the significant competitive advantage of the company’s World Health Organisation (WHO) Certifiable Plant is already evident after one full calendar year in operation.

    According to the company, products from the new facility as well as volume increase from existing products were largely responsible for its remarkable growth in 2017. The plant increased the company’s factory-based revenue by over 200 per cent in 2017—primarily due to an increase in production volumes and the introduction of new product lines. A portion of its new products are medicines that cater to low income earners, with the quality consumers have come to expect from Fidson, assured.

    “The company is highly focused on extensive brand building as part of its long-term strategy and aims to expand its Intravenous fluid lines in order to meet demands. Her new manufacturing facility, which is compliant with and on course to receive the WHO certification within 12 to 15 months—satisfying the African and global pharmaceuticals markets’ need for compliance and regulation, will drive this expansion,” the company said at the weekend.

    The company noted that it has broadened its products base, stimulate financial growth and increase its capacity to ensure the healthcare demands of Nigerians are adequately met.

    “The maximisation of profitability, as well as growth opportunities, are paramount to Fidson Healthcare Plc,” the company stated.

    At the last annual general meeting in Lagos, shareholders authorised the Fidson Healthcare board of directors to “raise further capital up to N6 billion through an offer either by way of public offering, rights issue, or private and special placement of shares”.

    The meeting also authorised the directors to absorb oversubscription and convert existing loans due to any person from the company towards payment for any rights or shares subscribed for.

    Shareholders also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of additional 600 million shares of 50 kobo each.

    Fidson Healthcare Plc Chairman, Mr. Felix Ohiwerei, who spoke at the meeting,  said the additional capital would be used to boost working capital that had been negatively impacted by Naira depreciation.

    He noted that the company’s new factory came on stream at the tail end of the last business year and the company needs additional capital to realise the full potential and utilise the new factory to full capacity.

    He added that the company had through new infusion lines that it recently commissioned, introduced new products into the market.

    “The completion of our new factory and the concentration of production on one site is an important milestone for the company. The board is confident that the company is in a very good position to remain a leading player in the industry,” Ohiwerei said.

     

     

  • Fidson Healthcare assures shareholders of continuous profitability

    The Board of Directors of Fidson Healthcare Plc has assured shareholders that the company has invested in adequate capacity that would ensure that it remained profitable in spite of the challenges in the macro-economy and the pharmaceutical sectors.

    Addressing shareholders at the annual general meeting at the weekend at Sheraton Hotels and Towers, Ikeja, Lagos, Fidson Healthcare Plc Chairman, Mr. Felix Ohiwerei, said improvement in operating facility and strategic management of resources would ensure that the company continues to be profitable.

    He said the company’s biotech plant, which  commenced manufacturing activities in May 2016, has tremendously increased the company’s production capacity and placed the company in better stead to meet the growing need for quality pharmaceutical products in Nigeria and beyond.

    “With the improved operating facility and continued prudent management of resources, the board and management are optimistic that the company will continue to be profitable,” Ohiwerei assured.

    He noted the constraints being faced by companies in Nigeria, especially in the areas of declining value of Naira, high inflation and increasing cost of production, but reassured shareholders and stakeholders that the directors of the company will continue to give their best to create value for shareholders.

    Shareholders approved the distribution of total dividend of N75 million, representing a dividend per share of 5.0 kobo for the year ended December 31, 2015. Fidson Healthcare recorded a turnover of N8.21 billion and profit after tax of N744.38 million in 2015 as N9.72 billion and N631.8 million respectively in 2014.

    Fidson’s growth strategies are premised on the recent move to the company’s new World Health Organisation Good Manufacturing Practice (WHO-GMP), where  local production recently commenced. The newly completed state-of-the-art facility will provide several benefits including increased profitability, increased efficiency from economies of scale, increased product offerings as well as job creation with an additional 300 jobs expected to be created.

    Fidson Healthcare recently submitted a regulatory filing at the Nigerian Stock Exchange (NSE) confirming the completion of the new factory.

    According to the regulatory filing, the new factory, which is arguably the largest pharmaceutical manufacturing facility in Africa, is equipped to produce six distinct product lines-intravenous infusions (IV) and other sterile preparations, tablets, capsules, oral liquids, creams and ointments and dry powder.

    The company said the new factory was part of the strategic expansion and diversification programme started, following the successful private placement in 2008. It noted that the supply gap existing in the infusion products’ sub-market persisted as demand kept growing linearly with population, which informed Fidson’s foray into the IV fluids market.

    It is estimated that two per cent of the population, estimated at 170 million, get admitted to hospitals in Nigeria monthly. About 70 per cent of medical patients get infusions at an average rate of four bottles per admission. For surgical patients, over 90 per cent of them will be given infusions. These translate to 3.2 million admission cases monthly, 10.2 million bottles per month and 123 million bottles per year. This is expected to increase with Nigeria’s growing population which is currently put at 2.8 per cent per annum. Market size in revenue terms was conservatively put at N25 billion in 2013, according to the Pharmaceutical Manufacturing Group (PMAG) of the Manufacturing Association of Nigeria (MAN).

    Fidson noted that there was an unmet gap of 2.36 million bottles per month which its new facility is positioned to bridge while growing volumes in the existing production lines.

    “With this new facility, we aim to significantly meet orders of the major consumers – the teaching and general hospitals, federal medical centres, big private hospitals and corporate clinics among others as far as infusion products are concerned using the existing marketing and distribution platforms.

    “The expected financial contribution from this project is such that shall grow the company’s turnover by additional N1.9 billion at 75 per cent activity level by the third year of production, N2.9 billion at 90 per cent  activity level by sixth year and N3.6 billion by the 10th year at same 90 per cent activity level. Overall, this project shall contribute handsomely to the overhead recovery of the company thereby growing shareholder value significantly. This company, aside from increasing its production capacity, the new factory would enhance business prospects in three major ways including ability to tender for WHO-sponsored programmes, which Nigerian pharmaceutical manufacturers are unable to access, losing out to foreign companies in these tenders; opportunity to export some of its products to other countries in Africa and beyond and grow foreign exchange income and the overarching benefit in job creation as additional 300 jobs are being created.

  • Fidson Healthcare assures shareholders of continuous profitability

    The Board of Directors of Fidson Healthcare Plc has assured shareholders that the company has invested in adequate capacity that would ensure that it remained profitable in spite of the challenges in the macro-economy and the pharmaceutical sectors.

    Addressing shareholders at the annual general meeting at the weekend at Sheraton Hotels and Towers, Ikeja, Lagos, Fidson Healthcare Plc Chairman, Mr. Felix Ohiwerei, said improvement in operating facility and strategic management of resources would ensure that the company continues to be profitable.

    He said the company’s biotech plant, which  commenced manufacturing activities in May 2016, has tremendously increased the company’s production capacity and placed the company in better stead to meet the growing need for quality pharmaceutical products in Nigeria and beyond.

    “With the improved operating facility and continued prudent management of resources, the board and management are optimistic that the company will continue to be profitable,” Ohiwerei assured.

    He noted the constraints being faced by companies in Nigeria, especially in the areas of declining value of Naira, high inflation and increasing cost of production, but reassured shareholders and stakeholders that the directors of the company will continue to give their best to create value for shareholders.

    Shareholders approved the distribution of total dividend of N75 million, representing a dividend per share of 5.0 kobo for the year ended December 31, 2015. Fidson Healthcare recorded a turnover of N8.21 billion and profit after tax of N744.38 million in 2015 as N9.72 billion and N631.8 million respectively in 2014.

    Fidson’s growth strategies are premised on the recent move to the company’s new World Health Organisation Good Manufacturing Practice (WHO-GMP), where  local production recently commenced. The newly completed state-of-the-art facility will provide several benefits including increased profitability, increased efficiency from economies of scale, increased product offerings as well as job creation with an additional 300 jobs expected to be created.

    Fidson Healthcare recently submitted a regulatory filing at the Nigerian Stock Exchange (NSE) confirming the completion of the new factory.

    According to the regulatory filing, the new factory, which is arguably the largest pharmaceutical manufacturing facility in Africa, is equipped to produce six distinct product lines-intravenous infusions (IV) and other sterile preparations, tablets, capsules, oral liquids, creams and ointments and dry powder.

    The company said the new factory was part of the strategic expansion and diversification programme started, following the successful private placement in 2008. It noted that the supply gap existing in the infusion products’ sub-market persisted as demand kept growing linearly with population, which informed Fidson’s foray into the IV fluids market.

    It is estimated that two per cent of the population, estimated at 170 million, get admitted to hospitals in Nigeria monthly. About 70 per cent of medical patients get infusions at an average rate of four bottles per admission. For surgical patients, over 90 per cent of them will be given infusions. These translate to 3.2 million admission cases monthly, 10.2 million bottles per month and 123 million bottles per year. This is expected to increase with Nigeria’s growing population which is currently put at 2.8 per cent per annum. Market size in revenue terms was conservatively put at N25 billion in 2013, according to the Pharmaceutical Manufacturing Group (PMAG) of the Manufacturing Association of Nigeria (MAN).

    Fidson noted that there was an unmet gap of 2.36 million bottles per month which its new facility is positioned to bridge while growing volumes in the existing production lines.

    “With this new facility, we aim to significantly meet orders of the major consumers – the teaching and general hospitals, federal medical centres, big private hospitals and corporate clinics among others as far as infusion products are concerned using the existing marketing and distribution platforms.

    “The expected financial contribution from this project is such that shall grow the company’s turnover by additional N1.9 billion at 75 per cent activity level by the third year of production, N2.9 billion at 90 per cent  activity level by sixth year and N3.6 billion by the 10th year at same 90 per cent activity level. Overall, this project shall contribute handsomely to the overhead recovery of the company thereby growing shareholder value significantly. This company, aside from increasing its production capacity, the new factory would enhance business prospects in three major ways including ability to tender for WHO-sponsored programmes, which Nigerian pharmaceutical manufacturers are unable to access, losing out to foreign companies in these tenders; opportunity to export some of its products to other countries in Africa and beyond and grow foreign exchange income and the overarching benefit in job creation as additional 300 jobs are being created.

  • Fidson Healthcare rallies on completion of new WHO-compliant factory

    Fidson Healthcare rallies on completion of new WHO-compliant factory

    Fidson Healthcare Plc recorded the second highest gain at the stock market at the weekend after the healthcare company announced the completion of its new World Health Organisation (WHO)-compliant ultra-modern manufacturing plant.

    Fidson Healthcare submitted a regulatory filing at the Nigerian Stock Exchange (NSE) confirming the completion of the new factory. At the first trading session after the announcement on Friday, Fidson’s share price rose by 9.90 per cent, the second highest percentage gain during the five-hour trading session. Altogether, Fidson’s share price rose by 16.84 per cent last week, the fifth highest gain at the stock market during the five-day trading week.

    Market pundits said the new factory could be a major game changer for Fidson and Nigerian healthcare industry, positive sentiments that appeared to have excited investors.

    “In our view, the new manufacturing plant is expected to contribute significantly to the company`s profitability and also enhance shareholders value in terms of dividend,” SCM Capital, former Sterling Capital Markets, stated.

    According to the regulatory filing, the new factory, which is arguably the largest pharmaceutical manufacturing facility in Africa, is equipped to produce six distinct product lines-intravenous infusions (IV) and other sterile preparations, tablets, capsules, oral liquids, creams and ointments and dry powder.

    The company stated that the new factory is part of the strategic expansion and diversification programme started following the successful private placement in 2008, noting that the supply gap existing in the infusion products’ sub-market persists as demand keeps growing linearly with population, which informed Fidson’s foray into the IV fluids market.

    It is estimated that two per cent of the population, estimated at 170 million, get admitted to hospitals in Nigeria monthly. About 70 per cent of medical patients get infusions at an average rate of four bottles per admission. For surgical patients, over 90 per cent of them will be given infusions. These translate to 3.2 million admission cases monthly, 10.2 million bottles per month and 123 million bottles per year. This is expected to increase with Nigeria’s growing population which is currently put at 2.8 per cent per annum. Market size in revenue terms was conservatively put at N25 billion in 2013, according to the Pharmaceutical Manufacturing Group (PMAG) of the Manufacturing Association of Nigeria (MAN).

    Fidson noted that there is an unmet gap of 2.36 million bottles per month which its new facility is positioned to bridge while growing volumes in the existing production lines.

    “With this new facility, we aim to significantly meet orders of the major consumers – the teaching and general hospitals, federal medical centres, big private hospitals and corporate clinics among others as far as infusion products are concerned using the existing marketing and distribution platforms.

    “The expected financial contribution from this project is such that shall grow the company’s turnover by additional N1.9 billion at 75 per cent activity level by the third year of production, N2.9 billion at 90 per cent  activity level by sixth year and N3.6 billion by the 10th year at same 90 per cent activity level. Overall, this project shall contribute handsomely to the overhead recovery of the company thereby growing shareholder value significantly. This will be in addition to increased capacities by almost two-fold for the existing five product lines that will open up opportunities for contract manufacturing,” Fidson stated.

    According to the company, aside from increasing its production capacity, the new factory would enhance business prospects in three major ways including ability to tender for WHO-sponsored programmes, which Nigerian pharmaceutical manufacturers are unable to access, losing out to foreign companies in these tenders; opportunity to export some of its products to other countries in Africa and beyond and grow foreign exchange income and the overarching benefit in job creation as additional 300 jobs are being created.

  • Fidson Healthcare records N477m profit in H1

    Fidson Healthcare Plc braced industry and macroeconomic headwinds to grow pre-tax profit to N477 million in the first half of 2015.

    Key extracts of the six-month report for the period ended June 30, 2015 showed that the company recorded a pre-tax profit of N477 million in 2015 as against N456 million recorded in comparable period of 2013. The report showed that turnover dropped by 12 per cent to N4.034 billion compared with N4.573 billion in the corresponding period of 2014. Earnings per share improved to 22 kobo as against 21 kobo in comparable period of 2014.

    The report meanwhile showed that a quarter-on-quarter growth in revenue of 128 per cent as sales returned to normal levels post-elections.

    The company noted that despite the year-on-year slowdown in sales, which was largely due to the prolonged general elections and transition period, margins improved over the first six months, driven by the company’s cost optimisation drive.

    Operating expenses dropped by 67 per cent from N150 million in 2014 to N49 million in first half 2015, with selling and distribution expenses also decreasing from N605 million to N325 million, a decline of 46 per cent.

    Fidson, which recently emerged as the recipient of the Frost & Sullivan 2014 Growth Excellence Leadership Award in the Nigerian pharmaceutical industry, continues to gear up for the commissioning of its World Health Organisation (WHO) Good Manufacturing Practice (GMP) compliant plant, where it would manufacture IV fluids in addition to existing product offerings. The new plant is scheduled to be operational before the end of 2015 and is expected to broaden Fidson’s product base and increase its capacity.

    Fidson’s growth opportunities have also recently been enhanced by the announcement of its partnership with Immune Therapeutics Inc, a United States (US) public company to market “LodonalTM” in Nigeria. “LodonalTM” is a patent-protected product that is indicated for the management of patients with immune-compromise.