MeCure Industries Limited, a pharmaceuticals and nutraceuticals manufacturing company has listed by introduction its 4 billion ordinary shares at N2.96 per share on Nigerian Exchange Limited (NGX).
The listing of the shares at N2.96 per share on the growth board of the Exchange added N11.84 billion to the market capitalization of the Exchange.
The official listing was celebrated with a Closing Gong ceremony and a Fact Behind the Listing Presentation.
Expansion plans
The Chairman, of MeCure Industries Plc, Mr Samir Udani speaking at the listing ceremony disclosed that the Pharmaceuticals and Nutraceuticals company aimed to actualize its expansion plans with the listing on the Nigeran Exchange Limited (NGX).
He noted that the listing is a significant move by the company’s management, stating that a family-run business is now in the eyes of the public.
He stated that the listing is going to get MeCure Industries more visibility and bring responsibility, and accountability to shareholders and general stakeholders of the company.
Foreign exchange challenges
Udani disclosed that 30% of the company’s products are locally made, while the remaining proportions are imported into the country, stressing that there is a lot of scope for local producers to expand and grow amid foreign exchange challenges.
He assured the investing public of the company’s introducing innovations.
The Chief Executive Officer, of NGX, Mr Temi Popoola stated listing MeCure industries is a welcome development as healthcare companies are missing from the bourse.
Healthcare companies
According to Popoola,
- “If you look at our Exchange today, one of the things that is notably absent is the number of healthcare companies that investors can invest in our Exchange.
- “To have a company that sits at manufacturing towards the healthcare sector, we welcome that very much. It broadens the scope of investable assets for us at the Exchange. It also demonstrates what I call the core value that the capital market brings.
- “Healthcare, of course, we can’t overemphasize the importance to our country and to find a company that is manufacturing healthcare-related products, that has the opportunity through the capital market to raise capital, to amplify its visibility as an example and to help build more sustainable businesses is one that certainly does gladden to our hearts.”
Speaking to the capital market community at the company’s “Facts Behind the Listing”, Chief Financial Officer, Mecure, Mr Ifedamola Oluwasegun said the company’s principal business includes manufacturing, distribution, and sale of pharmaceutical and nutraceutical products.
- “MeCure commenced the trading of nutraceuticals in 2018 and has so far developed 93 products under the flagship of Youthberry,” he said.
Financial performance
According to him, in 2022, the company generated a total of N2.10 billion from the sale of nutraceutical products.
He added further that
- “The Company has well-defined and clearly outlined operations, production, and distribution processes, specific to each of its product categories; tablets, capsules, wet syrups, and dry syrups.
- “The processes of the Company have been designed in line with global best practices and conformance with applicable legislation,” he said.
On management strategy and outlook, he said the company aimed to manufacture beta-lactam tablets and dry syrup with a total cost of N4.5 billion on completion and produce Dexamethasone and Prednisolone tablets
From the financial position, MeCure Industries declared N2.61 billion profit in 2022 from N6772.23 million reported in 2021. Profit before tax increased to N3.78 billion in 2022 from N1.79 billion in 2021.
In 2022, the company declared N26.6 billion in revenue, an increase of 28.72% from N20.7 billion in 2021.
From my own personal assessment of activities of pharmaceutical industries in Nigeria my assessment of the industry as far as the NGX is concerned is not encouraging. It appears the marketing strategy is wanting and as such, the would-be investors are unaware of the future of the industry in Nigeria. A whole lot of things may be responsible for the non-recognition of the industry because of their reliance on foreign partners. Many efforts must be put in place to educate future investors about the opportunities that abound within the industry. No doubt, competition from within and outside of the industry, may facilitate the expected progress within the industry. I would not hesitate to invest in the industry for the future looks brighter if only the management would put more efforts towards Research and Development areas of the industry. I sincerely hope for a brighter future of the industry in Nigeria and Africa.