MeCure Industries Offers N6.5bn Commercial Paper at 23.26%
MeCure Industries Plc’s has opened its ₦6.5 billion series 12 commercial paper for subscription for interested investors at 23.3627% coupon rate, FSDH told investors via email. The working capital raised under the company’s ₦20 billion commercial paper is scheduled to close on Wednesday, June 19, 2024, according to transaction details.
In order to raise the working capital required for an expansion project, the rapidly growing human therapeutics company in the Nigerian pharmaceutical industry is selling commercial paper at 28% yield.
In October 2023, MeCure commenced the installation of its Beta-Lactam plant for manufacturing beta-lactam tablets and dry syrup. This includes combination antibiotics such as amoxicillin-clavulanicacid (Amoxyclav), a customers’ sought out antibiotic for bacterial infections with a market size exceeding ₦500 billion.
For close to two decades, MeCure has significantly advanced the pharmaceutical manufacturing sector in Nigeria through technology and innovation, pioneering novel products such as the Liquitab Floatcap, the industry’s first tablet-in-a-capsule formulation.
This new facility positions MeCure as the first local manufacturer to produce amoxiclav locally. It is projected to generate ₦8 billion in revenue in 2024 at 70% capacity utilization, increasing to ₦12 billion in 2025.
The plant was completed in Q1 2024 and received NAFDAC approval for local production on April 30th. At the same time, management initiated the installation of a corticosteroids plant for treating inflammatory conditions, expected to be completed in Q2 2024.
These new product lines are anticipated to significantly boost the company’s revenue growth, according to its commercial paper details. In November 2023, the company listed 4 billion ordinary shares on the NGX Growth Board, achieving one of the largest market capitalizations in the growth segment.
The listing has resulted in a substantial share price increase, reflecting strong investor confidence, and raising the total market capitalization to a new high. MeCure grew revenue by 19.2% year on year to ₦31.8 billion in financial year 2023.
Its improved bottom line was driven by increased product volumes and average unit prices.
Its profit after tax surged by 11.7%, underscoring its effective market penetration, product innovation, and expansion strategies. MeCure Industries Plc has a stable outlook with short-term ratings of A2 by GCR and A1 by Data Pro, demonstrating its financial stability and commitment to delivering exceptional value to stakeholders in the pharmaceutical industry. Fitch Revises Nigeria’s Outlook to Positive
For more information, please reach out to the contacts listed below.
Fredrick Nwogu
fnwogu@fsdhgroup.com
Vanessa Omoregie
vomoregie@fsdhgroup.com
