Ngozi Amuche
Despite the ravaging effect of the COVDI-19 pandemic, Fidson Healthcare Plc reported revenue increase of 16.19percent, to N4.45bn in the second quarter of 2020, from N3.83bn last year.
Fidson Healthcare Plc is one of the leading pharmaceutical manufacturing companies in Nigeria. It is the second-largest pharmaceutical company in the country by Q2 2020 revenue, after GlaxoSmithKline Consumer Nigeria Plc – with a revenue of N5.44bn.
Analysis of the company’s result showed growth in its revenues, despite the challenges of COVID-19. The lockdown affected the importation of raw materials, including some of its exports. Yet revenue plummeted, thanks to an increase in sale of prescription drugs.
Fidson has two key segments – Prescription (Ethical) drugs, and Over-the-counter sales. While revenues from over-the-counter sales were flat; the company booked revenues of N4.69bn, compared with N3.7bn in the period under review.
COVID-19 pandemic has largely boosted sales for most healthcare companies, as Nigerians rushed to buy immune boosters, thought to provide protection against the virus.
Prescription drugs (Ethical drugs) also increased as a result of that, when compared with Q2 2019. The COVID-19 pandemic boosted the revenue of pharmaceutical companies, compared with previous periods as medicine sales surged.
Apart from growing demand, the sector has also attracted interest from the CBN and the FG. Recently, The Central Bank of Nigeria (CBN), intervened in the sector through the provision of N100bn credit, towards managing the pandemic.
Despite the interventions, the sector still faces a major challenge, as noted by the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN).
The association said that local drug manufacturers may run out of business, as most raw materials and nearly finished pharmaceutical products are imported into the country.
The Association admitted that the reason for this was inconsistent government policies, which had resulted in lack of investment in the sector.
Commenting on the surge in profits and reduction in certain costs, the Chairman of the company, Mr. Segun Adebanji, said that various cost-cutting strategies were utilized in driving performance upward.