Nigeria’s first pharmaceutical company, May & Baker Nigeria Plc last week signed a Memorandum of Understanding (MOU) with the National Institute for Pharmaceutical Research and Development (NIPRD), for the Production and commercialisation of Niprisan which is a treatment for sickle cell patients in Nigeria.
“Our target initially is to commence production at the NIPRID facility before the end of this year or latest by first quarter, 2019 to enable Nigerians, especially the patients have access to the drug, along with its benefits,” Valentine Okelu, executive director of May & Bakers Nigerian Plc told BusinessDay.
Businessday investigations showed the deal will help cut down health expenses for sickle cell patients in Nigeria who have longed suffered in years past due to high cost and inaccessibility of sickle cells drugs in the country.
Figures from Nigeria based Sickle Cell Foundation showed that in Nigeria over 40 million Nigerians are healthy carriers of the sickle cell gene, while each year over 150,000 babies are born with symptomatic sickle cell anaemia (Hb SS).
Ayodeji Ebo, managing director of Afri-invest securities limited said the deal will definitely boost the revenue of May & Baker, increase their capacity and will also make the firm more attractive to investors.
An investigation by Businessday into the financial report of May & Baker Plc indicated that over 70 percent of its revenue comes from pharmaceuticals, and less than 1 percent from beverages. The revenue of the company has been on the increase over the years from 2013 to 2017 from N6.37 billion to N9.35 billion respectively.
However, Ebo noted that the government owned NIPRD should honour their terms of agreement with May& Baker in other to encourage private investors and boost investors’ confidence in government.
“The general public especially investors will be cautious of whether the government will honour their agreement or not,” Ebo told BusinessDay by Phone.
Uche Olekanma, nature care business manager of May & Baker said Niprisan is used in the management of sickle cell diseases and it’s also multifaceted.
“The drug has an anti-sickling effect in sickle cell patients thus greatly reducing the number of pain crisis and improving body weight in the patients,” Olekanma told BusinessDay.
The drug which was discovered by NIPRD is an herbal product produced indigenously and with its unique formulations which makes it different it from other herbal products in the market.
Ayodeji Aboderin, head of finance at May & Baker Nigerian Plc said the company is also making plans to hit the market with its rights issue.
“We are currently projecting a N10 billion revenue before the end of 2018 however this recent Niprisan deal will surely increase it,” Aboderin told BusinessDay.
The company recorded a loss after tax of N103.1 million and N41.1 million as at the year ended 2013 and 2016, while in 2014, Profit after tax increased by 7.4 percent to N68.03 million in the full-year 2015 and by 445 percent in 2017. This increase was due to a 10 percent increase in revenue in 2017 from the previous year as 85 percent of its revenue came from pharmaceuticals.
Return on Equity (ROE) grew to 11.2 percent in 2017 from a negative ROE of 1.36 percent in 2016. In 2013, the ROE was also negative but it improved positively to 2.05 percent and 2.19 percent in 2014 and 2015 respectively.
For its first quarter 2018 results, the company’s revenue increased by N13.6 million or 0.58 percent from N2.36 billion in the previous year to N2.38 billion. Likewise, its Profit before tax and Profit after tax hiked in 2018, its PBT to N208.8 million from N35.5 million in the previous year, and its PAT to N141.96 million in 2018 from N24.1 million 2017. Return on Equity was positive from 0.8 percent in 2017 to 4.1 percent in 2018.
May & Baker Plc is involved in the manufacturing of pharmaceuticals such as anti-diabetics, anti-hypertensive, anti-infective, anti-malaria, cough and cold medication, analgesic, multivitamins and anxiolytics. The company also produces Lily table water.
The company founded on September 4, 1944 is a public quoted company with its stock listed on the health sector on Nigerian Stock Exchange (NSE) main board. Its stock currently trades at N2.45 per share. Its Market capitalisation is N2.401 billion as at the close of the market on Thursday, 21st of June, 2018.
