By Modupe Gbadeyanka
Analysts at Cowry Asset have recommended the shares of Fidson Healthcare Plc to investors willing to add to their portfolio.
This is because the firm recorded a strong H1 2018 performance relative to its industry, judging by major financial ratios.
Fidson Healthcare Plc, a major drugs manufacturer in Nigeria, sustained its performance track record following a 11.50 percent increase in revenue.
This was enabled by its increased production capacity from its recently built world class WHO certified ultra-modern manufacturing plant capable of producing six distinct product lines which include: intravenous infusions and other sterile preparations, tablets, capsules, oral liquids, creams and ointments and dry powder.
The new plant, which has boosted its economies of scale, also positions Fidson to take advantage of the changing government regulations that aim to increase locally manufactured medicines to about 70 percent from current 40 percent of total medicines consumed in Nigeria.
The producer of essential drugs also benefited from the recent implementation of the 20 percent import adjustment tax (from 0 percent) against imported substitute drugs, which has enhanced the competitive edge of local pharmaceutical producers.
However, despite its impressive profitability indicators, Fidson also recorded mounting leverage while liquidity continued to thin out as CCC lengthened to 239.13 days (from 155.21 days).
Cowry Asset said regardless though, it expects the drug maker to remain a dominant player in the country and profitably so.
more recommended stories
PreDiagnosis, American University Partner for Better Grassroots Healthcare
By Modupe Gbadeyanka In order to.
What to do to Access CBN’s Healthcare Research Grant
By Modupe Gbadeyanka The Central Bank.
Firm Begins Production of Medical Face Mask in Lagos
By Dipo Olowookere A local company.
Protein Deficiency: A Blight On Modern Healthcare
By Reginald Onabu Modern medicine has.
LASUTH Gastroenterologist Wants Cheaper Treatment for Hepatitis
By Dipo Olowookere The Head of.
Fidson Gains 18.11% in One Week, Closes Best Performing Stock
By Dipo Olowookere One of the.
Indorama to Boost Economy with COVID-19 Testing Lab
By Adedapo Adesanya Indorama-Nigeria, the parent.
COVID-19: Capital Market Donates Ambulance, Praises PTF
By Dipo Olowookere Stakeholders in the.