Neimeth Eyes N20bn Capital Raise For Expansion

Neimeth International Pharmaceuticals Plc has stated its strategic intention to raise N20 billion through a capital market initiative designed to finance significant operational growth and vital manufacturing upgrades.

The managing director, Neimeth International Pharmaceuticals, Pharm. Valentine Okelu stated this at the Company’s 2026 annual media briefing held in Lagos at the weekend.

He stated, “at our annual general meeting on June 23, 2025, our shareholders approved a N20 billion capital raise. This capital will be utilised to complete ongoing expansion projects, reinforce working capital, reduce financing costs, enhance production capacity, and consolidate our growth momentum.”

Okelu further indicated that the management aims to access the capital markets at an opportune moment to facilitate a portion of this approved capital raise.

Celebrating a significant milestone, he said “Neimeth will also mark its 70 years of pharmaceutical excellence in Nigeria next year. The company, originally founded as Pfizer Products Plc, has navigated various phases of growth interspersed with challenging periods.”

Okelu reflected on recent challenges, stating, “in recent years, we faced considerable headwinds, particularly due to foreign exchange volatility and escalating cost pressures. However, I am thrilled to announce that 2025 marked a decisive turnaround in our fortunes.”

He highlighted “the company’s return to profitability, showcasing the impressive financial outcomes from the fourth quarter (Q4) of 2025. For the period that ended on December 31, 2025, Neimeth reported a 64 per cent increase in revenue, rising from N4.49 billion in 2024 to N7.37 billion.

“Operating profit surged to N2.7 billion, a leap from just N18.9 million in 2024. Profit before tax rose to N1.48 billion, a stark contrast to a loss of N854.5 million the previous year. Furthermore, net profit rebounded from a loss of N885.3 million in 2024 to a positive N982 million in 2025, and earnings per share saw a substantial recovery, increasing by 43.7 kobo, from a loss of 20.72 kobo to 22.98 kobo.”

Okelu attributed this turnaround to a steadfast focus on core business fundamentals, which yielded three major outcomes: strong volume growth across key product lines, diligent cost management strategies, and the effective conversion of foreign currency-denominated obligations alongside strategic restructuring of all liabilities.

He noted, “The Nigerian capital market has reacted positively to our renewed fundamentals. Our share price has increased from N5.80 at the beginning of trading this year to N9.80 as of January 30, 2026, reflecting a substantial 69 per cent appreciation.

The stock gained over 45 per cent throughout 2025, indicating a resurgence of investor confidence.”

Looking toward the future, Okelu emphasised that the management team remains committed to key priorities including strategic cost optimization, efficient route-to-market execution, disciplined working capital management, margin protection, and operational scalability.

“Our medium-term ambition is ambitious yet clear: to double our earnings and reinforce our position as a leading pharmaceutical manufacturing brand across Africa.”