MeCure Opens N9bn Commercial Papers for Subscription at 22.54%
A leading human therapeutics company in the Nigerian pharmaceutical industry, MeCure Industries Plc, has opened a ₦ 9 billion series 4 commercial paper with a 267-day tenor for subscription.
The offer priced at a discount rate of 22.5468% open today is scheduled to close on Tuesday, 29 April 2025, FSDH Capital Limited said in an offer document.
According to its offer document, MeCure said the proceeds from its commercial papers will be deployed as working capital and to meet other funding requirements.
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.
In October 2023, MeCure commenced the installation of its Beta-Lactam plant for manufacturing beta-lactam tablets and dry syrup, including combination antibiotics such as Amoxicillin-Clavulanic acid (Amoxyclav), a leading antibiotic for bacterial infections with a market size exceeding N500 billion.
This new facility positions MeCure as the first local manufacturer to produce Amoxiclav locally. The plant was completed in Q1 2024 and received NAFDAC approval for local production on April 30th.
Concurrently, the company has installed a corticosteroids plant for treating inflammatory conditions; this was completed at the beginning of Q3 2024. These new product lines are anticipated to significantly boost the company’s revenue growth.
In October 2024, there was a successful acquisition of a 10% equity stake in the company by Zrosk Investment Management Limited. This investment will boost Mecure’s financial position and fast track its growth strategy.
With Zrosk, Mecure is well positioned to drive forward its ambitious expansion plans and further contribute to the healthcare sector in Nigeria and beyond.
The acquisition will help Mecure enhance its operational efficiencies and gain greater access to resources, positioning it for a stronger market presence. The company’s stable and experienced executive management team has a history of consistent superior financial performance and returns.
In FY 2024, the company’s revenue increased to ₦46.03 billion, up by 44.4% year on year above ₦31.76 billion reported in 2023, driven by an increase in the sales of finished products.
The company reported an operating profit of N8.28 billion in the same year, a modest increase of 36.19% from N6.08billion recorded in 2023.
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.
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