Health
GCR Affirms Fidson Healthcare BBB(NG) Rating

By Modupe Gbadeyanka
Global Credit Ratings (GCR) has affirmed the national scale Issuer ratings assigned to Fidson Healthcare Plc of BBB(NG) and A3(NG) in the long term and short term respectively; with the outlook accorded as Stable.
Concurrently, GCR has assigned a national scale long term rating of BBB(NG) to the N2 billion Secured Fixed Rate Bond. The ratings are valid until June 2018.
Explaining reasons for the ratings, GCR said Fidson remains one of the key players in the Nigerian pharmaceutical sector, with an estimated market share of 6%. The business is enhanced by a strong marketing base and good distribution network, as well as strong relationships and synergies with various local and international suppliers, which should guarantee a sustainable supply of raw materials and consumables.
The company experienced significant rise in production costs in 2016, on the back of pressure on the procurement process, due to several factors, including the devaluation of the Naira and protracted foreign exchange shortages. In addition, there was production downtime between March and May 2016, as equipment from the old factories was relocated to the newly completed Biotech plant, it said.
Overall, revenue fell by 6.8 percent to N7.7 billion in FY16. Given the relative stability in foreign currency supply since February 2017 and the government support for locally produced medicines, Fidson reported a 79 percent annualised increase in revenue to N3.4 billion in 1Q 2017, indicating relatively sound performance against the FY17 budget, a statement by the rating agency said.
GCR noted that although the gross margin remained unchanged at 53 percent in FY16, rising energy costs, as well as elevated selling and distribution expenses continue to impact EBITDA and operating margins.
Input costs are expected to remain high in the current year, but economies of scale should see margins improve.
Net interest coverage weakened to 1.9x (FY15: 2.2x) in FY16, but improved to 2.1x in 1Q FY17, supported by stronger earnings.
It said the resilience of the margin going forward is contingent upon earnings stability and will continued to be monitored closely by GCR.
“Note is taken of Fidson’s long standing banking relationships, which have allowed for a steady source of funding and favourable terms in the challenging operating environment.
“Gross debt reduced to N4.4 billion at FY16 (FY15: N4.6 billion) as Fidson settled certain maturing term facilities.
“Accordingly, gross and net gearing were reduced to 68 percent and 62 percent respectively (FY15: 74 percent; 72 percent),” the statement said.
However, gross and net debt to EBITDA rose to 302 percent and 279 percent at FY16, due to the curtailed profitability during the year.
The debt profile has improved, with long term debt accounting for 55% of the interest-bearing obligations at FY16 (FY15: 60 percent). While Fidson is planning to raise additional debt and/or equity funding to support production capacity, the expected increase in production volumes from the new facilities should see gearing metrics decline by FY17.
Apart from FY13, Fidson reported working capital releases in all the years under review. The significant release recorded in FY16 was largely driven by trade receivables, which followed rigorous credit control measures and increased recovery efforts.
Bureaucratic delays on the part of the Lands Registry and other government agencies have prolonged the security perfection process for the N2 billion fixed rate bond.
Accordingly, GCR will only consider any additional rating uplift provided by the security package once the security is perfected in full.
Upward rating movement is presently limited by the tough operating environment which has resulted in curtailed performance.
However, upward pressure would arise from the attainment of targets over the medium term, and in particular, a significant reduction in debt. Negative rating action could emanate from sustained decline in earnings profile, which could lead to lower than anticipated debt service metrics and deterioration in all other credit protection metrics.
Health
Jacaranda Gets Funds to Expand Affordable Maternal Healthcare in Kenya
By Modupe Gbadeyanka
To expand affordable healthcare in Kenya, Swedfund has invested about $600,000 into Jacaranda Health Limited (Jacaranda Maternity) to support innovations in neonatal intensive care and strengthen Jacaranda’s ability to provide life-saving services to underserved populations.
Jacaranda Maternity provides high-quality maternal health care at more affordable pricing than typical private providers, focusing on women in Nairobi’s low- and middle-income communities.
The new funding will support the opening of new hospitals, upgrading of neonatal care, and improvements to existing facilities.
Maternal and newborn health outcomes in Kenya remain a challenge, with maternal mortality still high despite improvements in skilled birth attendance.
Public health facilities play a central role but face capacity constraints, while access to reliable, quality care varies across regions and income groups.
Private healthcare providers offering essential maternity services at accessible price points can complement public provision.
Jacaranda Maternity aims to expand its network to six hospitals to achieve financial sustainability while scaling its impact. The healthcare provider is a recognised leader in promoting women’s health, with 71 percent of its staff being women, and a track record of effective environmental and social management.
“This investment will help Jacaranda Maternity provide life-saving care to more women and families while furthering Swedfund’s mission to promote inclusive and sustainable healthcare,” a Senior Investment Manager at Swedfund, Audrey Obara, said.
Health
Nigeria Secures $350,000 FAO Support to Tackle Rising Bird Flu
By Adedapo Adesanya
Nigeria will get a $350,000 intervention from the Food and Agriculture Organisation of the United Nations (FAO) to support its response to the ongoing outbreak of Highly Pathogenic Avian Influenza (bird flu) and strengthen the country’s animal health systems.
An agreement was reached on Wednesday during a strategic meeting between the Minister of Livestock Development, Mr Idi Mukhtar Maiha, and the FAO Representative to Nigeria and the Economic Community of West African States, Mr Hussein Gadain, in Abuja.
The intervention, approved under FAO’s Technical Cooperation Programme, will support disease containment efforts in 11 affected states and enhance surveillance, coordination and response mechanisms to prevent further spread of the disease.
Speaking during the meeting, Maiha said effective disease control remains critical to improving livestock productivity and protecting the livelihoods of farmers across the country.
He explained that factors such as drought, scarcity of feed, interaction between livestock and wildlife, as well as cross-border movement of animals have contributed to the spread of diseases in some areas.
“We must continue to strengthen our animal health systems and build the capacity required to respond effectively to disease outbreaks. Our collaboration with FAO will help protect livestock assets, improve productivity and support the broader transformation of the sector,” the minister said.
Mr Gadain commended the federal government’s commitment to the development of the livestock sector and assured that FAO would continue to provide technical support to Nigeria.
He stressed the need to strengthen veterinary services at the state and community levels, improve early detection of diseases and promote biosecurity practices among livestock farmers.
The meeting also reviewed progress on the global campaign to eradicate Peste des Petits Ruminants, a highly contagious disease that affects sheep and goats.
To advance the initiative, the ministry plans to convene a national technical meeting involving veterinary institutions, researchers and practitioners to review Nigeria’s eradication strategy and address gaps in vaccine supply.
As part of preparations, the ministry will engage the National Veterinary Research Institute to assess its vaccine production capacity while exploring other options for vaccine procurement to meet national demand.
Both parties also agreed to accelerate Nigeria’s access to financing under the Pandemic Fund through the One Health approach in collaboration with the Nigeria Centre for Disease Control and the Federal Ministry of Health to strengthen preparedness and response to zoonotic diseases.
Plans are also underway for the Director-General of FAO to participate in the Antimicrobial Resistance Conference scheduled for June 2026 in Abuja, where President Bola Tinubu is expected to be recognised as the African Champion for the eradication of Peste des Petits Ruminants.
The meeting further agreed to inaugurate a Livestock Donor Working Group to coordinate development partner support and advance key initiatives, including the development of a national feed and fodder strategy aimed at improving productivity and sustainability in the livestock sector.
Health
Chimamanda: Euracare Raises Concerns Over MDCN Investigation Panel Process
By Aduragbemi Omiyale
A Lagos-based healthcare facility currently in the limelight, Euracare Multi-Specialist Hospital, has faulted the outcome of the investigation panel of the Medical and Dental Council of Nigeria (MDCN) on the death of a 21-month-old Nkanu Nnamdi Esege, son of a renowned author, Chimamanda Ngozi Adichie.
The toddler died some weeks ago after an alleged overdose of sedative propofol, with the family alleging medical negligence.
This week, the panel suspended the two doctors of Euracare, Dr Tosin Majekodunmi and Dr Titus Ogundare.
Reacting to the development in a statement, the hospital claimed it observed “a number of serious concerns that have arisen in the course of these proceedings.”
In the statement made available to Business Post, Euracare emphasised that it vouches for the “professionalism and integrity of our clinical team,” pointing out that “certain established processes and protocols have not been followed in the manner required” during the probe.
While it empathised “with the family of Master Nkanu Nnamdi Esege” over the unfortunate incident, the healthcare firm said there was a “serious breach” by the investigators that “cannot go unaddressed.”
It identified this breach as the disclosure of “matters covered by patient and institutional confidentiality” outside the appropriate channels.
Below is the full statement from Euracare;
Our attention has been drawn to widespread media reports concerning the interim suspension orders and other findings issued by the Medical and Dental Practitioners Investigation Panel against thirteen doctors, two of whom are our clinical staff members in connection with the ongoing proceedings relating to the death of Master Nkanu Nnamdi Esege. We remain fully committed to cooperating with all relevant regulatory and judicial authorities in the course of their inquiries.
We however wish to place on record our confidence in the professionalism and integrity of our clinical team. Dr. Tosin Majekodunmi and Dr. Titus Ogundare who are experienced professionals whose records of service to patients in Nigeria span many years. Both doctors have, in their respective careers, contributed meaningfully to the delivery of quality healthcare to Nigerian patients at a standard comparable to what is obtainable in the world’s leading medical facilities.
In the interest of transparency, since the commencement of this matter, we have conducted a thorough internal review of the clinical events in question, in line with our clinical governance standards and best practices. We have actively demonstrated our commitment to transparency and will continue to engage openly with all inquiries directed at us.
We are also compelled to draw attention to a number of serious concerns that have arisen in the course of these proceedings. It is our position that certain established processes and protocols have not been followed in the manner required. We have further noted, with deep concern, that matters covered by patient and institutional confidentiality appear to have been disclosed outside the appropriate channels, and we consider this a serious breach that cannot go unaddressed.
We wish to state that we stand by the principles of equality, fairness, and good governance. Every party in this matter, including our institution and our staff, is entitled to a process that is conducted with rigour, impartiality, and respect for the rules that govern it. We will be raising these concerns through the appropriate legal and regulatory channels.
We continue to empathize with the family of Master Nkanu Nnamdi Esege. The loss of a child is a grief without measure, and we carry that awareness in everything we say and do in relation to this matter.
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