MeCure secures 10% equity from Zrosk amid funding hurdles

MeCure Industries Plc has strengthened its position with a 10 per cent equity investment from Zrosk Investment Management Limited.

This strategic move comes amid a challenging funding landscape in Nigeria, where healthcare businesses increasingly seek alternative sources of capital to mitigate the impact of high borrowing costs.

Last week, the Central Bank of Nigeria raised its benchmark interest rate from 26.75 per cent in August 2024 to 27.25 per cent in October 2024, raising the cost of borrowing to a record level.

MeCure in an announcement said the transaction was conducted off-market and finalised following approval from the Nigerian Exchange Group (NGX).

The investment marks a significant milestone for the top pharmaceutical firm as it scrambles to strengthen its capital base and accelerate its growth trajectory.

MeCure expects the deal with the investment, private credit, and asset management firm to boost its financial pool and operational efficiency, strengthening it to achieve expansion plans across Nigeria’s pharmaceutical chain.

Arjun Udani, Co-CEO of MeCure Industries Plc, said the investment signals confidence in the company’s long-term growth strategy and a commitment to delivering quality healthcare solutions.

“With Zrosk’s support, we are well-positioned to execute our ambitious expansion plans and continue making a positive impact on the healthcare sector in Nigeria and beyond,” Udani said in an official statement seen by BusinessDay.

Samson Esemuede, managing director and chief investment officer of Zrosk Investment Management Ltd said Mecure’s focus on domesticating pharmaceutical production and intellectual capacity despite the high cost of operation attracted his firm.

He described the partnership as proof of its belief that ownership of industrial capacity on the African continent should be indigenous.

Esemuede views the stock market as a theatre of such transition and sees Mecure Industries as a potential dominant player in the pharmaceutical value chain on the continent.

“From our analysis, Mecure Industries can deliver products in critical therapeutic areas at a unit cost that helps drive affordability across the population. We are thus proud to be a part of this journey and look forward to supporting Mecure’s ambitious current and plans,” Esemuede said.