Fakoyejo OlalekanThe Nigerian pharmaceutical market generated over N65.36 billion between January and September 2022 based on the financials of the six largest drug makers operating in the country.
Prime Business Africa gathered Pharma Deko, Fidson Healthcare, Glaxo Smithkline, Neimeth, Morison, and May & Baker accounted for the largest share of the pharmaceutical market in Nigeria.
In this publication, Prime Business Africa collated the top five pharmaceutical firms in Nigeria based on their capital market valuation in the Nigerian stock exchange.
Top five pharmaceutical firms in Nigeria
Fidson Healthcare
Fidson Healthcare Plc, founded in 1995 by Fidelis Ayebae as a local distributor of pharmaceutical products imported into Nigeria, is the largest drug company in the country.
The company went into drug manufacturing in July 2002 after setting up its first local manufacturing facility, which made Fidson the first company to manufacture Antiretroviral (ARVs) drugs in sub-Saharan Africa in March 2005.
Two years later, Ayebae’s company set up a second manufacturing facility, and hasn’t looked back ever since, growing Fidson’s into a billionaire naira company revenue generating company from drug manufacturing and sales of products for Anti Infective & Anti Malaria, Anxiety & Sleep Disorder Cough & Cold Gastrointestinal Medicines Supplements.
Within 27 years, from the production of products like Astymin, Gascol, amongst others, Fidson now boast of N31.42 billion in revenue generated in nine of 2022, and a market valuation of N21.45 billion.
Glaxo Smithkline Consumer
Glaxo Smithkline Nigeria is the second largest drug maker in the country, with its root traced to New Zealand, England and United States of America.
GSK is the combination of four companies, Smith, Kline & Co, Beecham Group, Burroughs Wellcome & Company, as well as Glaxo.
Glaxo and Burroughs Wellcome & Company first merged in 1995 to form Glaxo Wellcome Plc, and in 1989, SmithKline Beecham Plc was created from the consolidation of SmithKline Beckman and Beecham Group. Glaxo Wellcome Plc and SmithKline Beecham Plc merged into GlaxoSmithKline (GSK) on December 27, 2002.
However, Beecham Limited was the first to make its way into Nigeria, incorporating in Nigeria on June 23, 1971, before commencing operation as Beecham Limited on July 1, 1972.
But due to the merger, the company changed its name in Nigeria to Glaxo Smithkline to reflect the consolidation.
As of September 2022, GSK Nigeria, known for producing Panadol, Andrews liver salts, Sensodyne Macleans and other Consumer Healthcare Products, generates N20.42 billion from drug sales, with a capital market valuation of N7.35 billion.
May & Baker Nigeria
May & Baker, Nigeria Plc is the country’s first pharmaceutical company, but the third largest drug manufacturer. It was founded in Nigeria on September 4, 1944.
The company has its origin in United Kingdom, where it was first corporately known as Grimwade, May & Pickett, manufacturing chemicals for pharmaceutical products.
Grimwade, May & Pickett was founded in 1834 by John May and William Gerrard Baker. Due to multiple mergers and acquisitions, the company has changed names severally.
The firm, which is now known as Sanofi-Aventis and Bayer Agrochemicals due to its split, entered Nigeria as May & Baker (West Africa) Limited, but later changed name to Embechem Nigeria Limited.
However, the company reverted to May & Baker Nigeria, making it the only exiting May & Baker brand. The firm that started off as a trading outpost to serve the West Coast of Africa has now grown into a N10.34 billion (according to 9months 2022 financials) revenue generating company, with a market valuation of N6.90 billion.
Neimeth International
Prior to the company bearing Neimeth, it was a Pfizer trading venture that started in 1957, operating as subsidiary of the US company for 40 years.
The trading venture grew into a larger firm, establishing a pharmaceutical manufacturing plant at Aba, but it was destroyed during the Nigerian civil war.
It went on to build modern pharmaceutical plant in the West African sub-region in 1976 at Oregun, Lagos, before Mazi Sam I. Ohuabunwa led Management purchased the 60 per cent equity holding of Pfizer Inc.
The acquisition led to Neimeth International Pharmaceuticals Plc, which produces Pancemol, Nimartem, Antimal, Miniplus, and other Healthcare, Ethical, and Veterinary products.
From the sales of these products, Neimeth generates N2.70 billion revenue, and has a market valuation of N2.563 million, making the firm the fourth largest pharma company in Nigeria.
Pharma Deko
Pharma-Deko Plc was initially known as Parke-Davis & Company in 1962, operating as a US company in Nigeria, where it served as a non-trading branch to promote its range of pharmaceutical products.
Prior to its manufacturing era, Parke-Davis & Company used appointed agents to import and distribute its products.
It stopped operating as a US company after the implementation of the Nigerian Enterprises Promotion Decree in 1972 forced the parent company to sell 40 per cent shares to Nigerian Citizens and associations.
As a result, the company started operating under the name Parke-Davis, but changed to Pharma Deko Limited in 1980, and later to Pharma Deko Plc in pursuance of the Companies and Allied Matters Decree of 1990.
The company is the producer of Sans Cream Soda Vitacee Syrup & Drops Phardol Drops, Pharmadec Syrup & Drops, and Parkalin. The sales of these products earned the firm N342.70 million in the first nine months of this year. Pharma Deko also has a N455.32 million market valuation.
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