The shares of pharmaceutical company, May & Baker Plc, rose 9.4 percent to N1.64 Thursday, its biggest gain in two-weeks, according to data from the Nigerian Stock Exchange.
The leap comes a day after the Federal government entered a joint venture agreement with the company to produce vaccines locally, in a deal worth N2.6 billion.
Source: Bloomberg
The deal, which will span from 2017 to 2021, involves an equity participation of 51 per cent from May &Baker, and 49 percent from the government.
The investment aims to reduce Nigeria’s dependence on importation of medicines and improve response time to viral and infectious diseases, according to Isaac Adewole, the minister of health.
“We have considered vaccines as a security issue, it is not only health but we need to consider the security of all Nigerians particularly our children,” Adewole said.
“With this agreement, we will be able to produce vaccines, and from 2021 and beyond, every other vaccine that is necessary will also be out on board for administration to Nigerians.”
The Federal government is using existing facility at the Federal Vaccine Production Lab, Lagos, as our equity, according to Adewole.
The facility “has been valued by Federal Ministry of Works and Housing at about N1.27 billion,” the minister added.
May & Baker’s shares have a year to date return of 73 percent.
The Nigerian Stock Exchange All Share Index (ASI) rose 2.8 percent to 30,314 points on Thursday, the highest in 11 months, driven by gains in banking and cement shares, as investors take advantage of low valuation of some commercial lenders’ shares.
LOLADE AKINMURELE
