KEY POINTS
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The Fidson Healthcare stake rise has lifted Ayebae’s equity value.
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Investors are responding to the company’s expanding local drug output.
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The strong rally reflects confidence in Fidson Healthcare’s long-term strategy.
As the value of his stake in the Lagos-based pharmaceutical company soars, Fidelis Ayebae, the longtime leader of Fidson Healthcare Plc, is having an exceptional year. His 33.1 percent share is now worth over $21 million thanks to the company’s stock, which has been one of the best-performing stocks on the Nigerian Exchange. It has also brought new attention to a sector that investors used to be wary of.
Fidson healthcare stake rise boosts momentum
Ayebae owns 759.6 million Fidson shares. That position was worth N11.77 billion, or almost $8.2 million, at the beginning of the year. Now, it stands at N30.39 billion, or around $21.15 million. The increase shows that investors are once again eager to support pharmaceutical companies with domestic production lines, particularly as Nigeria seeks to strengthen its supply chains and lessen its reliance on imported medications.
According to Billionaire Africa, Fidson’s stock has seen a dramatic shift. The Nigerian Exchange reports that since January, shares have increased by 158 percent, from N15.5 to N40. Investors that stuck with the shares through years of fluctuating currency values, high borrowing rates, and pressure on operating expenses have benefited from this rise, which has increased the company’s market worth to over $63.8 million.
Decisions made long before this year’s rise gave Fidson its current momentum. In 1995, Ayebae founded the business as a modest wholesaler of foreign medications. When Fidson constructed its first manufacturing facility seven years later, he changed course and the company became one of the first to embrace local production in a market that was dominated by imports. By becoming the first Nigerian company to manufacture antiretroviral medications locally in 2005, the company strengthened its position, increasing access to HIV treatment and increasing its visibility in the medical community.
Investor confidence fuels Fidson healthcare rise
In a market that is being challenged by rising import costs, investors now seem to be reacting to the advantages that domestic firms enjoy. Institutional funds and retail traders looking to get exposure to businesses positioned to profit from the nation’s changing healthcare priorities have found Fidson more enticing due to its continuous efforts to increase capacity and broaden its selection of prescription and over-the-counter goods.
