Neimeth International Pharmaceuticals Plc has promised its shareholders that its ongoing facility upgrade will lead to greater returns on their investment in 2014.
The Chairman, Neimeth Pharmaceuticals, Dr. Ambrosie Orjiako, said this in Lagos at the company’s 55th Annual General Meeting.
According to Orjiako, the company is currently upgrading its facilities and working on a new manufacturing plant, all of which would boost its bottom line and return on investment for the shareholders.
He told the company’s shareholders that the company’s focus at the moment was to enhance its production capacity and reduce manufacturing costs in order to enhance the quality of its products and secure World Health Organisation accreditation. Subsequently, he said the company would shift its focus to the expansion of its research and development in natural products.
“In fulfilment of this aspiration, we shut the (current) plant down for one month in December, 2013 to upgrade our facilities and install new equipment that cost us well of $1m. The new machines comprise fluid bed processor, high speed tableting machine, blistering machine and automatic packaging machine.
“This move as anticipated will enhance our capability, aid reduction in manufacturing cost now and in the future. This will make our products more affordable and improve profits.”
The company had returned to profitability in the financial year ended September 30, 2013 with its profit before tax rising by 350 per cent to N182m from a loss before tax of N52m in the preceding year.
Orjiako said the development meant that the company was in a good position to fulfil its obligations to the shareholders.
“Today, I am happy to announce that in 2013, we profitably increased our turnover with growth indices of 30 per cent and hence, will be in a better position to give alternative form of returns to shareholder.”
Subsequently, shareholders approved the recommendation of the company’s Board of Directors that holders of the company’s shares get one share for every five shares held.