Neimeth hails FG tax waiver, returns to profitability

 Neimeth International Pharmaceuticals Plc says implementation of the Federal Government’s tax waiver for pharmaceutical raw materials has assisted in reducing production cost and accelerating organisational growth.

The Managing Director of the company, Mr Valentine Okelu, said this at a media parley on Friday in Lagos.

Recall that the government implemented a two-year exemption from import duties and Value Added Tax for critical pharmaceutical raw materials, effective from March 5, 2025, to March 2027.

The policy approved by President Bola Tinubu, aims to reduce production costs, boost local manufacturing, and lower the prices of essential medicines.

Okelu urged the government to sustain and expand the policy to include some raw materials which were omitted from the current lists.

“However, the majority of our inputs are on the lists, and we’ve benefited from the policy,” he said.

He emphasised that pharmaceutical manufacturing is different from other production, advocating for patient capital to drive sustainable growth in the pharmaceutical sector.

He disclosed that Neimeth would be celebrating 70 years of pharmaceutical excellence in Nigeria in 2027.

According to him, the company which was established and formerly known as Pfizer Products Plc, has experienced both cycles of growth and challenging periods.

Okelu described 2025 as a defining year of recovery from losses to profitability, pointing to its impressive fourth quarter results for the period ended Dec. 31, 2025, as a testament to its rebound.

“In recent years, we faced significant headwinds, particularly foreign exchange volatility and cost pressures.

“However, I am pleased to announce that 2025 marked a decisive turnaround. The era of losses has ended. Neimeth has returned to profitability,” he said.

Speaking on the company’s performance, Okelu said revenue grew by 64 per cent, rising from ₦4.49 billion in 2024 to ₦7.37 billion in the fourth quarter of 2025, while operating profit surged to ₦2.7 billion, compared to ₦18.9 million in 2024.

He noted that profit before tax stood at ₦1.48 billion during the period under review, compared to a loss of ₦854.5 million in 2024 and net profit improved from a loss of ₦885.3 million in 2024 to ₦982 million.

The managing director stated that earnings per share improved by 43.7k, from a loss of 20.72k to 22.98k.
Okelu disclosed that the turnaround was driven by an unwavering focus on fundamentals which powered three major outcomes.
He listed the outcomes as strong volume growth across key product lines, prudent cost management and conversion of foreign currency-denominated obligations and strategic restructuring of all liabilities.
Okelu said the capital market has reacted positively to Neimeth’s stronger fundamentals, with its share price rising from ₦5.80 at the start of the year to ₦9.80 by Jan. 30, 2026—a 69 per cent increase.

“The stock gained over 45 per cent during 2025, reflecting renewed investor confidence.
“Our objective is clear: deliver sustainable profitability and long-term value creation,” he said.

According to him, the medium-term ambition of the company is to double earnings and strengthen its position as a leading pharmaceutical manufacturing brand across Africa.

Okelu said the company would embark on an expansion and manufacturing capacity growth strategy to sustain its growth momentum and alignment with its long-term strategic plan.

He said the company had completed an upgrade of its Oregun, Lagos facility, positioning it to meet growing domestic demand and improve operating leverage.

He disclosed that the construction of its world-class pharmaceutical manufacturing facility in Amawbia, Anambra State, remains on course.

Upon completion, he said, the facility would meet World Health Organisation standards, serve as a centre of excellence for pharmaceutical manufacturing and contribute to the enhancement of Nigeria’s local manufacturing capability.

He added that the facility would position Neimeth to leverage AfCFTA opportunities and contribute meaningfully to Africa’s medicine security.

On its future plan, Okelu said Neimeth is repositioning as a profitable, growth-oriented pharmaceutical brand and a resilient player in Nigeria’s healthcare value chain.

He assured that 2025 marked a turning point and the years ahead would consolidate its transformation.

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