Neimeth International Pharmaceuticals Plc declared a turnover of N2.330 billion, a slight increase over N1.898 billion recorded in 2011 for the year ending September 30, 2012.
Making this known during its Annual General Meeting in Lagos, ABC Orjiako, Chairman, Neimeth International Pharmaceuticals revealed that 2012 witnessed financial instability of local industries leading to an inability to make major capacity and quality upgrades in their pharmaceutical plants.
With focus of Nigeria’s pharmaceutical sector being plant upgrade to meet the World Health Organisation (WHO) standards, Orjiako stated that WHO pre-qualification is a prerequisite for any company that wants WHO and other international agencies to buy their drugs through bulk purchase for distribution for health intervention programmes across the globe, an initiative that Neimeth Pharmaceuticals is accelerating efforts in.
According to Orjiako “2012 marked a deviation from 2011 in terms of profits while the company recorded a Profit After Tax of N113.077 million in 2011, we incurred a Loss after Tax of N69,304 million in 2012. Because of this performance, it will be not be feasible to pay dividend to out esteemed stakeholders. We would work assiduously to ensure that this situation is reversed to their benefit in 2013 business year.”
“Our major priority would be the prospects of building a new manufacturing plant which will in addition ensure capacity and quality upgrade and the WHO accreditation. This new plant would aim at capacity extension for continuous production of diverse dosage forms of capsules, tablets, oral liquids, and sterile products.”
The Chairman added, “During the 2012 business year, three additional directors were appointed to join the current board of diverse membership united by the common zeal to reverse and strengthen the economic fortunes of the company. They include Maurice Iwu, an accomplished pharmacognosist, Thomas Osobu, and Ike Onyechi, fellow, West Africa Postgraduate College of Pharmacists (WAPCP) and Chairman of the Nigerian Chapter.”
Emmanuel Ekunno, managing director/chief executive officer, disclosed that the business calendar was shifted from the usual twelve months to eighteen in order to steer the company’s mid-year away from the low activity period of November, December and January and to ensure proper alignment with government budget/financial release period. The MD said that there was a business re-engineering to strengthen business units and focus on demand, cost reduction, efficiency and set new strategic heading.
“Our major cash-cow, Pyrantrin, performed creditably well at N555 million with 65 percent budgetary achievement and 117 percent growth for a product that had just undergone a major transition in 2012. Pyrantrin’s performance was actually limited by production constraints. Our determination to reposition our products in premier position saw invoiced sales sustaining the N2 billion mark to hit N2.3 billion which is 23 percent growth in sales over 18 months,” Ekunno explained.
He noted that one of the company’s key objectives in 2012 was the downward reduction of costs by 25 percent.
“Our vision to elevate Neimeth to a global company has been reinforced by the current creation of Strategic Planning and International Markets unit (STRAPIMS) to oversee our business internationally in the USA, Europe and Asia. By June 2013, we would have launched NCP and Cikavit, a sickle cell drug in the USA. STRAPIMS will also focus on the new WHO plant project,” EKunno concluded.
A breakdown of the company’s financials show that cost of sales stood at N1. 028 billion within the period under review compared with N791million in 2011 while fixed asset stood at N409.981 million as against N394.163milllion in the previous year.