LAGOS (Sundiata Post) – Fidson Healthcare Plc, has coomenced its operations in a WHO compliant ultra-modern manufacturing plant equipped to produce 6 distinct product lines (intravenous infusions and other sterile preparations, tablets, capsules, oral liquids, creams & ointments and dry powder).
While stakeholders in the health sector see this as a move aimed at contributing immensely to the nation’s medicine needs and proffering opportunities for future exports, the project is part of the strategic expansion and diversification programme the company started following the successful Private Placement in 2008.
The supply gap existing in the infusion products’ sub-market persists as demand keeps growing linearly with population, which informed Fidson’s foray into the Intravenous (IV) fluids market.
It is estimated that 2 percent of Nigeria’s 160 million people get admitted to hospitals on a monthly basis in the country. Also, about 70% of medical patients get infusions at an average rate of 4 bottles per admission.
While over 90% of surgical patients are given infusions, this translates to 3.2 million admission cases monthly, 10.2 million bottles per month and 123 million bottles per year
This is expected to increase with the growing population which is currently put at 2.8% per annum. Market size in revenue terms was conservatively put at N25bn in 2013, Pharmaceutical Manufacturing Association Group (PMAG)
There is an unmet gap of 2,364,000 bottles per month which the new facility seeks to bridge while growing volumes in the existing production lines including while adding Water for Injection, Ear/Eye Drops lines.
The expected financial contribution from this project is such that shall grow the Company’s turnover by additional N1.9 billion at 75% Activity Level by the 3rd year of production, N2.9 billion at 90% Activity Level by 6th year and N3.6 billion by the 10th year at same 90% Activity Level.
With the new factory in operation, the ability to tender for WHO sponsored programmes, which Nigerian pharmaceutical manufacturers are unable to access, losing out to foreign companies in these tenders could be a thing of the past.
This is also an opportunity to export some medical products to other countries (Africa and beyond) and grow our FOREX income with an overarching benefit in job creation.