Shareholders Back Pharma Firm’s N50bn Rights Issue

Shareholders of MeCure Industries Plc have approved company’s proposed N50 billion rights issue aimed at strengthening working capital and driving regional expansion.

The proposal followed the company’s  2025 financial performance, with revenue rising by 69 per cent to N77.69 billion from N46.03 billion in 2024. Earnings before interest and tax almost doubled to N16.43 billion from N8.28 billion, while profit after tax surged by 177 per cent to N6.46 billion, reflecting improved operating efficiency and stronger demand for its pharmaceutical products.

At the company’s third Annual General Meeting (AGM) held in Lagos, shareholders approved a dividend of 32 kobo per ordinary share, amounting to N1.29 billion.

They also commended the board and management for delivering a stellar performance despite the challenging operating environment and pledged to participate in the company’s proposed N50 billion Rights Issue.

The national coordinator of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, said MeCure had delivered one of its strongest performances in recent years despite Nigeria’s difficult macroeconomic environment.

Speaking to shareholders, the chairman, MeCure Industries, Samir Udani said the company would continue to uphold strong corporate governance practices anchored on transparency, accountability and effective oversight.

“The dividend payout, despite prevailing uncertainties in the business environment, demonstrates the company’s commitment to delivering positive returns to shareholders. Barring unforeseen circumstances, the Board will continue to sustain the tradition of delivering improved and attractive returns to reward our shareholders for their belief and loyalty,” he said.

According to Udani, the company’s resilience is driven by cost optimisation, innovation, product diversification and market expansion, despite elevated interest rates, inflation and foreign exchange volatility that continued to pressure manufacturers during the year.

“Looking ahead, MeCure expects favourable government policies supporting local pharmaceutical manufacturing, improving foreign exchange stability and growing healthcare demand to create additional growth opportunities in 2026.”

He noted that the outlook is underpinned by increasing healthcare awareness, Nigeria’s growing population, rising demand for quality medicines and government initiatives to deepen local pharmaceutical production, positioning MeCure to sustain its growth momentum in the coming years.

He added that the proposed additional capital would fund strategic expansion projects, strengthen the company’s balance sheet, improve working capital and enhance operational efficiency amid rising financing costs, inflation and foreign exchange pressures.

Beyond its financial performance, MeCure strengthened its growth pipeline by securing regulatory approval for 19 new pharmaceutical products across cardiovascular, anti-infective and metabolic therapies, while four additional products are awaiting regulatory clearance.

The company also expanded its regional footprint by entering the Sierra Leone market, securing distribution agreements equivalent to four container shipments as part of its West African growth strategy.