Pharmaceutical firms traded on the Nigerian Exchange (NGX) have distinguished themselves as some of the top performers this year. Companies such as Fidson Healthcare, Neimeth International, Mecure Industries, and May & Baker Nigeria have all delivered remarkable returns so far this year. This impressive growth is largely driven by strong financial results and a surge in domestic manufacturing efforts.
As of October 13, Fidson Healthcare’s stock price soared by 181%, climbing from N15.50 to N43.50. Neimeth International’s shares rose 162%, moving from N2.29 to N6.01, while Mecure Industries experienced a 104% gain, reaching N28.40. Meanwhile, May & Baker Nigeria’s stock appreciated by 84%, increasing from N9.40 to N17.30.
While the NGX All-Share Index has advanced roughly 43% year-to-date, pharmaceutical equities have outpaced the broader market significantly. This trend underscores investors’ growing preference for companies exhibiting concrete industrial expansion amid Nigeria’s often volatile economic environment.
Robust Profitability and Growth Strengthen Investor Sentiment
The sector’s upward trajectory is closely linked to notable improvements in earnings. Fidson Healthcare posted a 68% revenue increase, reaching N62.6 billion in the first half of 2025 compared to N37.2 billion during the same period last year. Its net profit after tax surged nearly threefold to N6.02 billion, with earnings per share climbing from N0.66 to N2.63. Likewise, Neimeth International’s revenue grew to N2.91 billion in H1 2025 from N1.66 billion a year earlier.
May & Baker Nigeria also recorded solid financials, with revenue expanding to N19.3 billion in the first half of 2025 from N14 billion in 2024, alongside a net profit of N2.19 billion. Mecure Industries, which made its NGX debut on November 7, 2023, capitalized on its growing pharmaceutical and diagnostic services to generate N37.3 billion in revenue and a profit after tax of N2.7 billion in H1 2025.
Government Policies Drive Industry Growth
Recent regulatory reforms aimed at curbing Nigeria’s dependence on imported medicines have revitalized the pharmaceutical sector. Exemptions on import duties for raw materials, coupled with tighter restrictions on finished drug imports, have encouraged local manufacturers to enhance their production capacities.
These policy shifts have bolstered investor confidence, positioning pharmaceutical stocks as a resilient and appealing choice in a market often marked by unpredictability.
Nonetheless, analysts and portfolio managers caution that the sector’s rapid momentum could decelerate if cost pressures mount or if stock prices become detached from fundamental values. The industry’s reliance on imported raw materials and energy exposes it to vulnerabilities from currency volatility and inflationary pressures.
Despite these challenges, the combination of strong earnings growth and supportive government initiatives suggests that Nigeria’s pharmaceutical industry is set to maintain its influential role in the country’s manufacturing sector throughout 2025.