Own a Piece of Nigeria’s Expanding Pharmaceutical Sector

In Nigeria’s pharmaceutical industry, scale is not accidental. It is built, factory floor by factory floor, regulatory approval by regulatory approval, distributor by distributor.

For close to two decades, MeCure Industries Plc has been doing exactly that.

What began as a focused pharmaceutical operation has grown into one of Nigeria’s most structured and capacity-driven healthcare manufacturers. Today, with its ₦10 billion Series 7 Commercial Paper now available on AssetBase, the company returns to the capital markets at a materially different stage of its evolution — larger, more integrated, and significantly more industrial in scale.

From Private Growth to Public Market Discipline

When MeCure converted to a Public Limited Company and listed on the Nigerian Exchange in November 2023, it wasn’t simply a symbolic milestone. It marked a shift toward public-market discipline—transparency, free-float compliance, structured governance, and investor scrutiny.

Since listing, its market valuation has risen from approximately ₦11.9 billion to about ₦44.4 billion. That increase is not just a number; it reflects confidence in a business that has continued to expand both operationally and financially.

The company is now fully compliant with NGX free-float requirements, with a free float of 12.73%, further reinforcing its capital market credibility.

For many companies, public listing is the peak. For MeCure, it appears to be a midpoint.

Building Real Manufacturing Capacity

Nigeria’s pharmaceutical market is estimated at roughly $2 billion. Historically, much of that demand has been met through imports. But companies like MeCure are gradually shifting that balance by expanding domestic manufacturing capability.

Today, MeCure’s operations focus on the manufacture, distribution, and sale of pharmaceutical and nutraceutical products — spanning chronic disease treatments, anti-infectives, malaria therapies, and over-the-counter medications.

More importantly, capacity has expanded meaningfully. The company can now produce approximately 1 billion doses of tablets and capsules per month. That level of output places it among the larger, more industrial-scale local manufacturers in the sector.

Distribution is equally deliberate. With depots across Lagos, Abia, Anambra, and Kano, and a network of over 100 independent distributors, MeCure has built nationwide reach, not just production capacity.

It employs roughly 1,500 people and holds an estimated 7% share of Nigeria’s pharmaceutical market, a meaningful footprint in a competitive and essential industry.

Strategic Expansion: The Beta-Lactam Advantage

One of MeCure’s most significant recent milestones has been the commissioning of its Beta-Lactam plant.

Completed in Q1 2024 and approved by NAFDAC on April 30, 2024, the facility allows local production of beta-lactam tablets and dry syrups, including Amoxicillin-Clavulanic Acid (Amoxiclav) — one of the most widely prescribed antibiotics in Nigeria.

With an estimated market size exceeding ₦500 billion, this therapeutic category alone represents substantial revenue potential. By producing locally, MeCure reduces reliance on imports, strengthens supply chain resilience, and improves margin control.

Simultaneously, the company completed a corticosteroid manufacturing facility in early Q3 2024, expanding its therapeutic coverage to include inflammatory treatments.

These are not incremental upgrades. They are structural expansions of manufacturing depth.

Operational Efficiency in a Challenging Environment

Manufacturing in Nigeria comes with cost realities — energy being one of the most significant. MeCure’s transition toward gas-powered generators reflects a long-term efficiency strategy aimed at reducing energy costs and stabilizing production reliability.

Operational discipline, in this context, becomes a competitive advantage.

The company has also strengthened its supply chain through partnerships with international pharmaceutical firms and a diverse supplier base, reducing concentration risk and enhancing procurement flexibility.

Financial Performance: Growth with Control

MeCure’s financial results reflect strong operational momentum and profitability:

• Revenue (FY 2024): ₦46.03 billion (+44.4% YoY)
• Operating Profit (FY 2024): ₦8.28 billion (+36.2% YoY)
• Gross Profit (FY 2024): ₦14.8 billion
• Gross Profit (9M 2025): ₦20.4 billion (~34% margin)
• Operating Profit (9M 2025): ₦13.0 billion
• Profit After Tax (9M 2025): ₦4.46 billion (nearly triple 9M 2024)

These metrics indicate strong revenue growth, operational efficiency, improved margins, and quality earnings. Rising finance costs, while notable, have been effectively managed without eroding profitability, demonstrating disciplined leverage and cash generation.

The company maintains short-term credit ratings of A3 (GCR) and A1 (Data Pro), underscoring financial stability. Operational expansion has translated into financial performance.

The Series 7 Commercial Paper

The ₦10 billion Series 7 issuance forms part of MeCure’s ₦40 billion Commercial Paper Programme.

Commercial papers typically serve short-term funding needs — working capital, inventory cycles, operational scaling. For investors, they provide defined tenors and structured returns.

Key terms of the Series 7 issuance include:

• Tenor: 269 days
• Annual Implied Yield: 21.75%
• Gross Expected Yield: 16.1%
• Minimum Subscription: ₦100,000
• Offer Open Date: February 23, 2026
• Maturity Date: November 19, 2026
• AssetBase Allocation: ₦100 million

In a macro environment where income-generating assets are increasingly relevant, short-duration commercial paper backed by a scaled manufacturing company offers defined exposure with limited tenor risk.

Why This Matters Now

Healthcare demand in Nigeria is structural, not cyclical. Population growth, urbanization, and rising healthcare awareness continue to support pharmaceutical consumption.

Companies that combine:

• Domestic production capacity
• Regulatory compliance
• Distribution reach
• Financial growth
• Operational efficiency

…are positioned differently from purely import-driven distributors.

MeCure sits at that intersection.

Its Series 7 Commercial Paper offers investors a short-term fixed-income opportunity tied to a company that has moved beyond early-stage expansion to structured industrial scale.

Important Notice: Returns on this note attract a 10% mandatory government withholding tax (WHT) and a 2% processing fee. These charges apply to interest only, not to invested capital, and are deducted before payout.