Based on its recent performance in the Nigerian pharmaceutical Industry, Fidson Healthcare PLC has emerged winner of the 2014 Nigerian Frost & Sullivan Award for Growth Excellence Leadership. The award ceremony held in United Kingdom on May 14, 2015, recognizes Fidson’s definitive vision and strong management, which stoked a growth rate of 26 percent in 2013, cementing its leadership in the Nigerian pharmaceutical market.
According to Frost & Sullivan Research Analyst Danielle de la Mare, the Nigerian pharmaceutical market was estimated to be approximately US$1.19 billion in 2013, with year-on-year growth of 12 percent. Fidson’s audited report for the same period shows revenue growth of 29 percent, from N7.2bn in 2012 to N9.2bn in 2013. Fidson grew its gross profit by 26 percent, from N4.1bn in 2012 to N5.1bn to 2013, while its operating profit increased by 60 percent and operating margin by 3 percent.
Furthermore, Fidson is building a NGN7.5 billion biotech plant that will add a new product line – intravenous fluids – to its product portfolio while doubling its production capabilities of existing product lines by 2015, thereby facilitating economies of scale. It will also enable Fidson to invert its manufacturing capacity and imports ratio from 40:60 to 60:40. Fidson is one of five local manufacturing companies shortlisted for the WHO Current Good Manufacturing Practices (cGMP) compliance.
“Meanwhile, Fidson has forayed into the IV infusions market, as it expects to increase its turnover by 20-25 percent in the next two to three years from this product pipeline,” observed de la Mare. “It also plans to expand geographically into West Africa within a few years, after it further entrenches its presence in the Nigerian market, which constitutes approximately 65-70 percent of the West African market.”
Significantly, Fidson prices its products at retail value and leverages its economies of scale to compete with cheaper imports. The company has been able to bring down its factory overheads, passing on the savings to customers and simultaneously building its reputation as a company that is compliant with global standards, such as ISO 9001.
Frost & Sullivan Global President and Managing Partner, Krishna Srinivasan said “the most exciting companies to partner with, or invest in, are those that have an inspirational zeal for growth. Fidson Healthcare has demonstrated such a focus in the Nigerian pharmaceutical market by investing smartly, competing effectively, and carving out a unique, sustainable market position.”
Fidson has also shown keenness in leveraging technology, as is evident from its use of security technologies in product packaging to combat the spread of counterfeit drugs. Each Fidson product has a branded sticker on it with a number that the consumer can text toll free to verify the authenticity of the product.
The company estimates that it currently has a market share of approximately 9-10 percent, while its closest local competitors have nearly 8 percent. If this growth rate can be sustained or enhanced when the biotech plant becomes functional, the company could well become a fierce regional competitor in the future.
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. Frost & Sullivan’s Best Practices Awards recognize companies in a variety of regional and global markets for outstanding achievement in areas such as leadership, technological innovation, customer service, and product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research.