The Nation Newspaper

Tag: Fidson

  • Minister lauds Fidson on new factory

    •Reaffirms support for indigneous manufacturing

    The Minister of Health, Professor Isaac Adewole, has praised Fidson Healthcare Plc for its new state-of-the-art manufacturing facility in Sango, Ogun State.

    He reiterated the Federal Government’s support for indigenous pharmaceutical manufacturing, saying with the facility, the firm deserves the support and patronage of the government and  stakeholders.

    The Minister, who spoke to reporters during his familiarisation tour of the factory described the facility as a ‘wonder’, saying he is “impressed with its enormous production capacity” and pledged government’s support.

    “What Fidson has built here is extraordinary. We must encourage and support this project in terms of patronage and tax relief to ensure that the company is able to coordinate production in a sustainable manner,” Adewole said.

    The Minister said part of the support would be in raw materials’  import. “We will get the Sovereign Wealth Investment Authority to witness this so that there can be support in terms of getting on board more raw materials needed for drug manufacturing,” he said.

    He promised a review of the policy on importation tariff on raw materials, particularly in the indigeneous manufacturing of medicines in Nigeria.

    “We have discussed with the Minister of Trade and Investment asking for a reversal of the policy on the high tariff on imported raw materials. My visit to this new factory is another reminder in that regard,” he said.

    Adewole stressed that the Muhammadu Buhari administration is focused on creating the market for local manufacturers through patronage, protection and payment. “As far as patronage is concerned, the government will patronise local pharmaceutical manufacturers. We will also offer protection while ensuring that we clear outstanding payments and will only place orders when there are funds for immediate payment.’’

    The facility is one of the five  shortlisted for World Health Organisation (WHO) certification in Nigeria. The plant is equipped with six production lines – tablets, capsules, liquids, cream and ointments, dry powder and intravenous fluids to meet the needs of the Nigerian and West African markets.

    Fidson Healthcare Managing Director, Dr Fidelis Ayebae, expressed optimism that with the government’s support, the new plant would not only boost local pharmaceutical manufacturing capacity, it would transform industry.

    He said the pharmaceutical business requires huge investment to meet future healthcare demands of Nigerians. He noted that with the completion of the plant,  the  industry could launch into global reckoning and attract foreign investors.

    Ayebae highlighted the benefits of the factory to include high quality and affordable healthcare products, world-class pharmaceutical manufacturing capacity, employment generation, increased local content, generation of stronger partnerships, as well as strategic brand and market positioning.

    He said the plant would manufacture large scale pharmaceutical products for Nigerians, thereby strengthening its leadership position in the industry and  place the firm on the global map.

  • Fidson optimistic on future growth despite first-half slowdown

    Fidson optimistic on future growth despite first-half slowdown

    The management of Fidson Healthcare Plc has reassured that the healthcare company remains on the path to attaining significant growth in the near future as its focus on its strategies for market expansion, brand building and opportunities that exist through local and international partnerships would lead to better returns for shareholders.

    Against the background of 32 per cent decline in the company’s turnover in the first half of this year, the company stated that the low sales figure was as a result of unavailability of products, a direct consequence of the scarcity of foreign exchange shortage experienced by the manufacturing sector during the period.

    According to the management, Fidson only accessed 30 per cent of its foreign exchange needs in the first six months of the year. The paucity of foreign exchange, for the importation of products and essential raw materials, and macroeconomic headwinds were disruptive to the manufacturers in the pharmaceutical industry including the company’s business.

    Key extracts of the six-month half-year report for the period ended June 30, 2016 showed that sales dropped by 32 per cent from N4.032 billion in first half 2015 to N2.61 billion in first half 2016. Profit-after tax also declined to N39.582 million in 2016 as against N324.206 million recorded in the comparable period of 2015.

    Fidson stated that its cost optimisation strategy, which it embarked on a couple of years ago, continued in 2016 in line with the strategy to drive efficiency in the face of a challenging business environment.

    The management noted that the strategy saw Fidson reducing its operating cost by over 60 per cent in the period under review, assuring that the company will continue to drive efficiency into its processes, which will continue to result in savings on administration expenses.

    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.

    Aside from increasing production capacity, the new factory would enhance the company’s business prospects by enhancing its ability to tender for WHO sponsored programmes, which Nigerian pharmaceutical manufacturers are unable to access, losing out to foreign companies in these tenders.

  • Fidson Healthcare to open N9b WHO factory

    Fidson Healthcare to open N9b WHO factory

    •Govt urged to prioritise drug manufacturing

    Fidson Healthcare Plc at the weekend took select journalists on a tour of its newly completed World Health Organisation (WHO)-standard manufacturing factory with a call on the government to prioritise domestic manufacturing of drugs.

    Glistering in the daylight sun of Ota, Ogun State, the new plant, arguably the largest pharmaceutical manufacturing facility in Africa, is one of the few that had been shortlisted for WHO certification in Nigeria. The new plant is equipped to produce six distinct product lines-tablets, capsules, oral liquids, creams and ointments, dry powder and intravenous infusions to meet Nigeria and regional medicine needs.

    Operations, Fidson Healthcare Plc Director, Mr Abiola Adebayo, who led the tour, said the factory had gulped N9 billion, with the funding generated through debts and internally generated revenue.

    He said the plant was completed about eight months ago, but it could not start operations immediately because of issues of foreign exchange (forex), which has impeded raw materials sourcing.

    He urged the government to treat medicine as part of national security by implementing policies that will encourage the growth and sustainable development of Nigerian domestic pharmaceutical industry.

    According to him, the government should ensure a stable operating environment that would encourage long-term investments in the healthcare sector while also prioritising local manufacturers in its healthcare policies and transactions.

    He said in spite of the National Drug Policy that stipulates that 70 per cent of the drugs purchased by the government should be from the local industry, many local manufacturers are still not receiving the support of the government, a situation that is compounded by non-payment for supplies by the government.

    He called for a review of the present regulatory environment and regional agreements with a view to protecting the local pharmaceutical manufacturing industry, noting that the ECOWAS Common External Tariff (CET) as it is now, places Nigerian domestic manufacturing in jeopardy.

    According to him, the major issue with the current CET implementation on medicines is the reduction of import duty tariff on finished pharmaceutical products to zero per cent compared with five to 20 per cent duty on raw and packaging materials respectively, thus encouraging importation to the detriment of local manufacturing.

    He said government can protect the local industry by invoking the Import Adjustment Tax of the CET while working on a medium to long-term review of the agreement, adding that Nigeria constitutes 72 per cent of local pharmaceutical industry in the ECOWAS region.

    “We need to take a stand to ensure local pharmaceuticals survive,” Adebayo said.

    Noting that the company had to provide its own infrastructure such as power, water and road in addition to numerous community development initiatives, Adebayo said government should consider the state of Nigerian infrastructure to support domestic manufacturers, who see the operation of Nigerian pharmaceutical industry as a patriotic duty.

    “We need to be protected, we need to be patronised, we need to be paid, we have the quality and we have the same global standards,” Adebayo said.

  • Fidson rewards brilliant kids

    Fidson rewards brilliant kids

    Riding on the success of previous editions and its impact on children’s academic development and performance in the last five years, Fidson Healthcare Plc. is set to begin this year’s edition of its flagship children academic reward programme – Astymin Brilliance Reward.

    The yearly event is scheduled to hold tomorrow, at the Grange School, GRA, Ikeja, Lagos.

    The programme, which began in 2010, is aimed at developing the mental and academic performance, while rewarding hard work and academic excellence amongst primary school pupils, through special acknowledgment and provision of educational materials.

    This year’s programme will witness the convergence of the best graduating pupils from over two 200 private and public schools across the south-west and South-eastern region, as well as parents, teachers and stakeholders in the educational system. The kids will be recognised and rewarded with certificates of excellence and valuable prizes.

    According to the General Manager, Fidson Healthcare Plc., Mr Ola Ijimakin, this year’s edition is an evidence of Fidson’s unrelenting commitment to supporting the kids in all their academic endeavours, through its Astymin brand, in line with the corporate brand promise of valuing lives.

    “Like we have always emphasised, the ABR is our attempt to bring back the glory days of our education by throwing our weight behind the children’s drive for academic excellence. This is another season of delight for the kids who have worked so hard and perform exceptionally in their academics; but for us as a brand, it is another day of celebrating excellence”, he said.

    Expressing concern over the dwindling reading culture amongst teenagers and youths in Nigeria, and the untamed passion for fast money, fame and interests in social or political affluence, for which academic excellence has been traded, Ijimakin explained that Astymin Brilliance Reward is one of the ways the company is partnering with government and other well-meaning stakeholders to develop the country’s educational system.

  • Investments will sustain our growth, says Fidson

    Investments will sustain our growth, says Fidson

    Ongoing investments, including a new World Health Organisation (WHO)-compliant factory will boost Fidson Healthcare’s competitive advantages and resilience to ensure the leading pharmaceutical company continues to sustain growth in spite of the tough macroeconomic environment and peculiar industry challenges.

    In an interview with The Nation, Chief Accountant, Fidson Healthcare Plc, Mr. Oludare Adanri, outlined the short, medium to long term outlook for the company amidst the macroeconomic challenges and constraints in the pharmaceutical industry.

    He pointed out that growth in the immediate period will come from the company’s new factory and the introduction of a new line of products in the area of intravenous fluids as well as increased capacities on the company’s other five lines.

    “In the medium to long term, we believe expansion into other markets and disease and therapeutic areas will sustain growth. We are in a number of partnerships that will aid these growth areas,” Adanri said.

    He pointed out that the company’s new plant, which complies with the WHO’s current general manufacturing practice (cGMP) will enable it to optimise economies of scale, thus enjoying the benefit of lower unit product cost while simultaneously raising the capacity of the company by more than 200 per cent.

    Adanri speaks further on what investors should look for from Fidson within the context of the operating environment in the pharmaceutical industry:

     

    Strategic positioning of Nigerian pharma industry for global competitiveness

     

    “In order to expand our product portfolio as well as remain relevant in the global pharmaceutical space we commenced the establishment of our new manufacturing plant a few years ago. The new plant, arguably the largest pharmaceutical manufacturing facility in Africa, puts us on the path to attaining WHO certification. Fidson is one of five pharmaceutical companies that were shortlisted for WHO certification in Nigeria. The new plant is equipped to produce six distinct product lines-tablets, capsules, oral liquids, creams and ointments, dry powder and intravenous infusions to meet the nation’s medicine needs and proffer opportunities for future exports

    “Achieving WHO certification would enable us tender for WHO sponsored programmes, which is only accorded to WHO prequalified companies. Local pharmaceutical manufacturers in Nigeria currently lose out to foreign companies in these tenders because we are not certified. This would also allow us to export medicines.”

     

    What to expect from the new ultra-modern WHO-compliant plant

     

    “The new manufacturing plant will contribute meaningfully to the achievement of the Millennium Development Goals (MDG) of the Federal Government through job creation and reduction in infant mortality and maternal death. In terms of job creation, the plant when fully operational is expected to employ an additional 300 persons, besides more than 500 staff Fidson currently employs. This will cut across unskilled workers such as cleaners and packaging hands to highly skilled staff such as biochemists and pharmacists. Unskilled labour will make up a substantial part of the workforce, and this will no doubt contribute to the achievement of the first millennium goal of eradicating extreme hunger and poverty. Women would also be significantly represented in the additional workforce in order to enable women empowerment.

    “In the area of reduction in infant mortality and maternal death, another key goal of the MDG, some products from the Biotech plant will address this. Among products to be manufactured from this plant is Zinc + ORS – a WHO-recommended medicine for the prevention and treatment of diarrhea, a cause of 24 per cent of child deaths in Nigeria.

    Affordability of new products

    Our new WHO cGMP plant will affords us opportunity to enjoy economies of scale, thus the benefit of lowering our unit product cost. The capacity of the new plant is more than twice the capacity of our current plant. In addition, we are employing the use of gas generators at the new plant, which will see the cost of energy fall drastically over time. To put things in perspective, energy cost accounts for up to 25 per cent of our factory overhead and our ability to reduce this will lead to some cost savings that would eventually be passed unto consumers.”

     

    Access to finance

     

    “I can only speak from our experience at Fidson and thus far, our relationships with Nigerian banks has been somewhat favourable. We have relationships with a number of banks and, although, we are extended credit facilities, they are usually at very high costs. This is not unlike most industries in Nigeria. However, with an already very high cost profile, the increasing cost of borrowing is inimical to the growth of our sector and business alike.

    “On one hand, costs are very high while on the other hand, prices have to be low in other to remain competitive. Cheap and substandard variants imported into Nigeria mean that local manufacturers are almost unable to compete on pricing. It is against this background that we have continued to propose that the government urgently considers the provision of a Local Pharmaceutical Manufacturers’ intervention fund. The fund will enable the local industry raise capacity to global standards and compete fairly with imports.”

     

    Operating environment

     

    “As a company, this last year has been one of the most difficult years in our existence with operations disrupted by the elections, some policies that were disruptive to the pharmaceutical industry and access to essential medicines, specifically the National Drug Distribution Guideline, and recently foreign exchange issues. We took a dip in revenue as a result of interruptions to our business. The year 2016 has started off very much the same, however, we are optimistic that with the introduction of a new product line at our new WHO cGMP compliant factory and the government’s focus on promoting local manufacturing, we will return to growth.

    “Generally, the Nigerian pharmaceutical manufacturer is faced with many challenges from the incidence of fake and counterfeit drugs especially in the rural areas to low capacity utilisation and deteriorating infrastructure. With a population estimated at over 174 million, access to quality medicines is still very poor in Nigeria. Our industry, relative to population, is one of the smallest; we ranked 13th out of 14 countries, ahead of only Zimbabwe.

    “The average capacity utilisation of the pharmaceutical industry is less than 40 per cent, largely due to the influx of cheap imports and the lack of protection and incentive from successive governments. In spite of National Drug Policy that stipulates that 70 per cent of the drugs purchased by the government should be from the local industry, many local manufacturers are still not receiving the support of the government in this area. This situation is further compounded by non-payment for supplies by the Federal Ministry of Health.

    “There is also a need to further strengthen the present regulatory environment to protect the local pharmaceutical manufacturing industry and related activities. A case in point is the ECOWAS Common External Tariff (CET) whose implementation commenced last year. This policy in its current form is inimical to the growth of local pharmaceutical manufacturing. A major issue with the CET implementation on medicines is the reduction of import duty tariff on finished pharmaceutical products to zero per cent compared with five to 20 per cent duty on raw and packaging materials respectively. This scenario hugely favours importation to the detriment of local manufacturing. We are currently engaged with the government to correct this because if things continue this way local manufacturers, who are already at a cost-disadvantage due to poor infrastructure, will be out of business.

    Energy remains a major challenge to manufacturers in Nigeria. The cost of energy is a major part of overhead and increase in this cost further reduces the little margins on products. While most manufacturers are switching to the use of gas for energy supply to save cost, availability of gas has been a problem.

    “Also, the increased cost of foreign exchange (forex) for the importation of essential materials to production has led to an increase of over 50 per cent to the cost of forex and transfers. This has ultimately impacted on the cost of sales for locally manufactured products, thus reducing gross profit margin. Creditor days-overseas have also increased due to the delay in accessing forex to settle most creditors as at when due. Most of these costs cannot be passed on to the consumer in order not to further jolt a struggling industry.

    “But I will say the future of the industry looks bright given the current government drive to encourage the real sector and the special focus on healthcare. The campaign against counterfeit medicines, led by National Agency for Food and Drug Administration and Control (NAFDAC) and other industry players, has been fairly successful.”

    The occurrences of substandard products has reduced, which is a testament to this. However, despite the laudable efforts in this fight, the circulation of counterfeit pharmaceuticals remains a key challenge. Cooperation of other government institutions, the police force and customs will further strengthen the fight against counterfeit. The growth of the local manufacturing industry will also help to reduce the incidence of faking because the origin of every medicine produced can be traced. We believe that a well-developed and sophisticated local pharmaceutical manufacturing sector will play a critical role in addressing the malaise of counterfeits and complement the commendable efforts of NAFDAC. Fidson, along with our colleagues within PMG MAN, is actively involved in advocacy to drive change within the industry. However, some of the issues mentioned above; reliance on importation, drug faking, lack of favourable financing and poor infrastructure among others could still pose a threat to the future survival of the industry if not addressed.

  • Fidson Healthcare grows net profit by 18% to N744m

    Fidson Healthcare grows net profit by 18% to N744m

    Fidson Healthcare Plc grew net profit by 18 per cent to N744.38 million in 2015 as the healthcare company braced through a depressed top-line to sustain a resilient bottom-line.

    Key extracts of the audited report and accounts of Fidson Healthcare for the year ended December 31, 2015 showed that profit after tax rose from N631.83 million in 2014 to N744.38 million in 2015. The board however took a cautious approach to dividend payout, reducing dividend per share from 15 kobo in 2014 to 5.0 kobo in 2015.

    The company will distribute 10 per cent of net profit as cash dividends for the 2015 business year as against about 36 per cent distributed for the 2014 business year. Shareholders will receive a total of N75 million as cash dividends for 2015 as against N225 million paid for the previous year.

    The report showed turnover of N8.21 billion in 2015 as against N9.72 billion in 2014. Profit before tax stood at N838.04 million in 2015 compared with N870.8 million in 2014. The company stated the decline in pre-tax profit was due to 29 per cent increase in finance cost from N554 million to N715 million due to the N2 billion fixed rate bond issued in November 2014.

    The management of the company attributed the decline in top-line to challenges to sales and distribution faced during the first half of 2015 largely due to the general elections.

    Directors of the company noted that the upturn in sales witnessed in the second half of the year was curtailed by the paucity of foreign exchange for the importation of products and essential raw materials, which severely affected product availability.

    The management pointed out that the six per cent increase in operating profit from N1.45 billion in 2014 to N1.52 billion in 2015 was due largely to the company’s cost optimization strategy and a reduction in selling and distribution expenses.

    The management said the cost improvement trend, which it embarked on a couple of years ago, is in line with its strategy to drive efficiency in the face of a challenging business environment.

    “The company continues its focus on extensive brand building as part of its long term strategy and will be introducing a number of new products into the Nigerian market. This is a direct result of the move to the company’s new World Health Organisation Good Manufacturing Practice (WHO-GMP), where local production is being ramped up. A new product line – Intravenous fluids – to be added to five existing product lines at the new factory will enable Fidson to consolidate its manufacturing base in the near future,” the management stated at the weekend.

  • Fidson records modest growth in profit

    Fidson Healthcare Plc fell back on internal cost management to reduce the adverse impact of considerable decline in turnover and sustain modest growth in profit.

    Key extracts of the third quarter report and accounts of the healthcare company for the period ended September 30, 2015 showed that it reduced total operating expenses and cost of sales by 30 per cent and 14 per cent respectively to mitigate the top-down impact of 18 per cent decline in sales. The reduction in expenses and costs enabled the company to grow pre and post tax profits by two per cent each.

    Turnover dropped to N6.16 billion in third quarter of 2015 as against N7.51 billion recorded in comparable period of 2014. Cost of sales however dropped from N3.4 billion to N2.9 billion while distribution and administration expenses also reduced from N3.13 billion to N2.19 billion. With these, profit before tax increased marginally from N685.8 million to N696.3 million while profit after tax inched up to N473.5 million in 2015 as against N466.4 million recorded in comparable period of 2014. Earnings per share thus improved marginally from 31 kobo to 32 kobo.

    Fidson Healthcare had increased cash payouts to shareholders by 50 per cent as the company’s earnings firmed up in 2014. The company distributed N225 million to shareholders as cash dividends for the immediate past business year ended December 31, 2014. Shareholders received a dividend per share of 15 kobo as against 10 kobo received in the previous year.

    The dividend increase was directly related to the improvements in the earnings of the healthcare company. Key extracts of the audited report and accounts of Fidson Healthcare for the 2014 business year showed significant growths in key fundamentals.

    The company’s profit before tax rose by 249 per cent from N249.6 million in 2013 to N870.8 million in 2014. Profit after tax jumped by 308 per cent to N631.8 million in 2014 as against N154.9 million recorded in 2013. Earnings per share thus increased from 10 kobo in 2013 to 42 kobo in 2014.

    Fidson had relied on impressive cost management and improving operating efficiency to drive the bottom-line. While its turnover rose by five per cent from N9.25 billion to N9.73 billion, it moderated cost of sales to four per cent growth and reduced operating expenses by nine per cent.

    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 had stated.

    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.

    The plant is expected to broaden the company’s products base, increase its capacity and consequently profitability and growth opportunities.

    Operations Director, Fidson Healthcare Plc, Mr. Biola Adebayo, 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 be 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.

    According to him, the new plant would further enhance the local manufacturing capacity of the company with more than two-thirds of its products expected to be produced locally.

    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.

     

     

  • Fidson partners foreign firms on product marketing

    Fidson Healthcare Plc has partnered United States (US) firms – Immune Therapeutics, GB Pharma and American Hospitals & Resort (AHAR) – on the marketing and distribution of a new drug, LodonalTM.

    The drug is patent-protected because it is indicated for the management of patients with immune-compromising diseases.

    The deal will leverage Fidson’s strong and experienced marketing base, robust distribution channels and efficient customer and technical support services to promote the drug in Nigeria. The distribution will become effective, upon completion of the ongoing NAFDAC approved 90-day bridging trial evaluating the efficacy and safety of the product.

    Its Managing Director, Dr Fidelis Ayebae, said: “Fidson is truly excited about this collaboration with Immune Therapeutics and GB Pharma/AHAR. We know that success in this industry going into the future will be dependent on having the right partnerships, and we could not have asked for better partners at this stage of our growth. The international experience of Immune Therapeutics and GB Pharma/AHAR in different markets, and their strong commitment to research will be of immense benefit to our company. Likewise, Fidson’s towering presence in the Nigeria Pharma space will open a great door for the group to access one of the biggest and most rewarding markets in Africa.”

    This partnership is another strategic approach by the management of Fidson Healthcare Plc, to further strengthen the company’s growth. It also comes on the heels of the recent visit by President Muhammadu Buhari to the United States and President Barack Obama. The significance is monumental as a concrete symbol of US-Nigerian commerce in a non-oil/gas related sector and a show case for the future of local manufacturing of quality pharmaceuticals on the continent.

    President/Chief Executive Officer, GB Pharma, Dr. Gloria Herndon said: “This is the crescendo of a great masterpiece that partnership of GB Pharma, American Hospitals & Resorts, Immune Therapeutics, each with its distinct role. Fidson Healthcare markets and distributes throughout the extensive Nigerian Network. We feel that Nigeria and US bilateral relationship will benefit from this amazing initiative that will enhance the health and wellbeing of people all over the world. This is the spirit of collaboration that President Obama and President Buhari were talking about during the State visit.”

    Fidson Healthcare, which was recently recognised by Frost & Sullivan as the recipient of her ‘2014 Growth Excellence Leadership Award in the pharmaceutical industry, recorded sales of N9.7 billion in 2014 financial year.

    The award was in recognition of the company’s consistent performance in the pharmaceutical sector, which has seen its revenues rise at a 15 per cent CAGR over the last five years.

    The company has also won other corporate awards, including the Financial Standard ‘Pharmaceutical Sector Leader’ Award in 2008 and the ‘Nigerian Pharmaceutical Company of the Year’ at the Nigerian Healthcare Excellence Awards (NHEA) last year. Fidson’s definitive growth and consistent performance in the Nigerian stock market also earned her CEO the 2014 BusinessDay Top 25 CEOs Award, which the company has won consecutively for two years.

    To offer options in manufacturing and grow its product portflio, Fidson will inaugurate a N7.5 billion manufacturing plant this year. The new facility will double the company’s production capacity and will also for the first time, add intravenous fluids to Fidson’s product portfolio. The facility is built to conform to the World Health Organisation (Geneva)-Good Manufacturing Practice (WHO-GMP) standards.

    AHAR Chief Executive Officer, Dr Richard Afonja said: “We are well positioned to effect this novel approach to treating HIV/AIDS and other immune compromised diseases in the whole of Africa, starting with Nigeria. Bringing Fidson on board will enhance the facilitation of getting this much needed treatment approach for these conditions.”

    To achieve her strategic imperative of improving her products and consolidate her market position, Fidson has continued to invest in research and development across various disease areas. This has seen her record a number of firsts, key among which was becoming the first company in sub-Saharan Africa to manufacture antiretroviral drugs in 2005.

    The company has over 200 products across several therapeutic classes, which cut across anti-infectives, gastrointestinal, antiretroviral, anti-malarial, cardiovascular, analgesic, haematinics and supplements.

  • Fidson shareholders to get N225 million

    Shareholders of Fidson Healthcare Plc will receive a 50 per cent increase in cash dividend this year as the company’s earnings firmed up.
    The Board of Directors of Fidson Healthcare has recommended distribution of N225 million to shareholders as dividends for the immediate past business year ended December 31, 2014. Shareholders will receive a dividend per share of 15 kobo as against 10 kobo received in the previous year.
    The dividend increase was directly related to the improvements in the earnings of the healthcare company. Key extracts of the audited report and accounts of Fidson Healthcare for the 2014 business year showed significant growths in key fundamentals.
    The company’s profit before tax rose by 249 per cent from N249.6 million in 2013 to N870.8 million in 2014. Profit after tax jumped by 308 per cent to N631.8 million in 2014 as against N154.9 million recorded in 2013. Earnings per share thus increased from 10 kobo in 2013 to 42 kobo in 2014.
    Fidson had relied on impressive cost management and improving operating efficiency to drive the bottom-line. While its turnover rose by five per cent from N9.25 billion to N9.73 billion, it moderated cost of sales to four per cent growth and reduced operating expenses by nine per cent.
    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 had stated.
    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.
    The plant is expected to broaden the company’s products base, increase its capacity and consequently profitability and growth opportunities.
    Operations Director, Fidson Healthcare Plc, Mr. Biola Adebayo, said the new manufacturing plant, which will aggregate the manufacturing lines from other intravenous products, will be 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.
    According to him, the new plant would further enhance the local manufacturing capacity of the company with more than two-thirds of its products expected to be produced locally.
    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.