Shares of Neimeth International Pharmaceuticals Plc have risen by over 32% in the third week of January 2025, pushing its month-to-date performance to over 50%.
This increase follows the company’s late October earnings report for the period ending September 30, 2024, revealing a pretax profit of N310 million, a recovery from the previous year’s N575 million loss.
For the nine-month period, revenue reached N3 billion—a 104.8% increase from N1.5 billion the previous year—driven primarily by pharmaceutical products, which accounted for 96.5% of total turnover, while animal health contributed 3.5%.
Neimeth also strengthened its profits with ‘other income’ amounting to N134.5 million, where interest income accounted for 70.5% and lease rental income contributed 16%.
The recent surge in share price is likely due to the positive earnings report in October, along with a series of director transactions that occurred since November.
As of January 16, the company’s shares have surged over 50% month-to-date, accompanied by a trading volume of 23 million shares.
Market trend
Neimeth Pharmaceuticals kicked off January 2024 with a share price of N1.94, navigating a market volume of 55 million shares before closing the month at N1.90.
- The stock experienced a period of stagnation throughout the first three quarters. However, a resurgence of bullish momentum emerged in November, propelling the company past the N2 threshold, where it closed the month at N2.18.
- December continued this upward trajectory, with the stock leveraging a market volume of 13.9 million shares to reach N2.29, resulting in a year-to-date performance of 18% for 2024.
As January 2025 progresses, the bullish trend intensifies, with the company breaking the N3 barrier and surging over 50% month-to-date, supported by a monthly market volume of 23.5 million shares.
Possible drivers of bullish price action
Several factors may have contributed to the recent increase in Neimeth Pharmaceuticals’ share price:
- The company reported a pretax profit of N310.4 million for the nine-month period ending September 30, 2024, reversing the pretax loss of N575.1 million from the previous year, representing a change of 154.3%.
- Sales also increased, with turnover reaching N3 billion for the period—a year-over-year rise of 104.8%. Sales of pharmaceutical products accounted for 96.5% of this increase.
After the release of the financial report in October 2024, the company’s stock experienced a market volume of 19.4 million, crossing the N2 threshold to close at N2.29.
- Additionally, there were some director dealings, including the purchase of 541,499 shares by the Managing Director and CEO, alongside another dealing from a board member.
- These events may have contributed to a rise in buying interest and investor activity in early to mid-January.
- After the earnings report release, MD/CEO Valentine Chinedu Okelu remarked on the company’s progress, assuring shareholders and stakeholders of their commitment to product innovation, research, and development.
He stated, “We are confident we will be able to hit our targets and create sustainable value for our shareholders.”
