The Board and Management of Neimeth International Pharmaceuticals Plc have received praise from Nigerian Exchange (NGX) for improving operations, fostering business continuity, and regaining investor confidence.
This was said by Jude Chiemeka, the interim chief executive officer of NGX, at the Tuesday, June 11, 2024, NEIMETH Facts Behind the Figures Presentation.
Chiemeka stated, “We are thrilled that Neimeth has decided to use this platform to inform the investment community about its financial performance, strategic goals, and operational advancements.
We hope that today’s interaction will be fruitful, encouraging transparency, price discovery, and ultimately enhancing the overall performance of your stocks. He also stated that, in spite of the current economic challenges, NGX recognizes efforts of the Board and Management of Neimeth in enhancing operations, promoting business continuity, and restoring investor confidence. “Given that accurate, accessible, and timely information is essential to stimulate market activity, your presence here today underscores your dedication to providing relevant information to the market.”
According to Valentine Okelu, MD/CEO of Neimeth, the company launched its brand of generic products to meet local healthcare needs, formed new alliances to expand its product portfolio, and created new business opportunities following the divestment. The company’s manufacturing plant in Oregun, Lagos State, is responsible for producing over 15 consumer and ethical products.
According to Okelu, “the Company’s free float stood at 37% as of December 31, 2022, which was 17% above the 20% minimum requirement mandated by the NGX’s rule.” But in 2023, after the company’s rights issue exercise was completed, an evaluation of the company’s free float revealed that it had decreased to 17.78 percent, putting the company below the NGX’s required free float of 20 percent of its issued share capital.
He went on to say that “a two-year extension period has been approved for the Company, within which to achieve the required free float threshold or have trading in its securities suspended, following Neimeth’s engagement with the NGX Regulation Limited.” The approval was given subject to requirements that the company agreed to fulfill.
Okelu provided a prognosis for the company that showed an 189.88 percent increase in revenue from N5.002 billion in 2024 to N14.5 billion in 2028, as well as a predicted increase in profit before taxes from N211.889 million in 2024 to N691.685 million.
