Fidson Sees Growth in Profit, Revenue With GSK Deal

By Modupe Gbadeyanka

The management of Fidson Healthcare Plc has expressed optimism that its recently signed agreement with GlaxoSmithKline (GSK) Nigeria Plc should bring about growth in its profit as well as revenue.

In 2018 financial year, the leading pharmaceutical manufacturing company in Nigeria established in 1995, recorded a loss after tax of N97.5 million against the profit after tax of N1.1 billion a year earlier, while the profit before tax dropped to 160.9 million from N1.6 billion.

However, its revenue increased to N16.2 billion from N14.1 billion, while the operating profit dropped to N2.1 billion from N2.6 billion, with the gross profit going down to N6.3 billion from N7.2 billion.

Some days ago, the management of GSK announced that in line with the restructuring of its supply chain operating model, it has selected Fidson Healthcare Plc as its preferred local contract manufacturing partner to take effect from the third quarter of 2021.

In a notice to the Nigerian Stock Exchange (NSE) today, Fidson said, “With this development, [the company] is poised to increase the capacity utilisation of its ultramodern manufacturing facility in Ota, Ogun State and by extension its profitability.”

“Fidson envisages that all necessary regulatory approvals would be obtained to execute the contract successfully,” it added.

The firm revealed that, “The selection process which commenced about two years ago ended on Friday, April 12, 2019 with a signing ceremony at the corporate head office of GSK Nigeria in Lagos.”

Fidson Healthcare Plc is a company built on five care values of innovation, excellence, passion, intergrity and ownership and is relentlessly pursuing its goal of becoming a leading player in the pharmaceutical landscape in Nigeria.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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