Neimeth International Pharmaceuticals Plc has experienced a remarkable increase in its share price, rising by more than 32% during the third week of January 2025, resulting in a month-to-date gain exceeding 50%.
This surge follows the company's earnings report released in late October, which covered the period ending September 30, 2024. The report indicated a pretax profit of N310 million, marking a significant recovery from a loss of N575 million recorded the previous year.
For the nine-month period, the company reported revenue of N3 billion, reflecting a substantial 104.8% increase from N1.5 billion in the prior year. This growth was primarily driven by pharmaceutical products, which represented 96.5% of total revenue, while animal health contributed the remaining 3.5%.
Additionally, Neimeth bolstered its profits with 'other income' totaling N134.5 million, with interest income making up 70.5% and lease rental income accounting for 16%.
The recent share price appreciation is attributable to the positive October earnings report and subsequent director transactions commencing in November. As of January 16th, the company's shares have exhibited a month-to-date increase exceeding 50%, accompanied by a trading volume of 23 million shares.
Neimeth Pharmaceuticals started off January 2024 with a share price of N1.94, trading 55 million shares before wrapping up the month at N1.90.
The stock pretty much stayed flat during the first three quarters. But then in November, things took a turn for the better, pushing the price over N2, and it ended the month at N2.18. December kept the good vibes going, with the stock climbing to N2.29 on a market volume of 13.9 million shares, giving it an 18% gain for the year so far in 2024.
As January 2025 rolls on, the positive momentum is really picking up, with the stock breaking past the N3 mark and jumping over 50% for the month, backed by a market volume of 23.5 million shares.
Several elements may have played a role in the recent surge of Neimeth Pharmaceuticals’ share price:
The company announced a pretax profit of N310.4 million for the nine-month period ending September 30, 2024, a significant turnaround from the pretax loss of N575.1 million recorded in the previous year, marking an impressive change of 154.3%.
Sales figures also saw a notable increase, with turnover reaching N3 billion for the period, reflecting a year-over-year growth of 104.8%. Notably, sales of pharmaceutical products constituted 96.5% of this growth.
Following the release of the financial report in October 2024, the company’s stock witnessed a market volume of 19.4 million, surpassing the N2 mark to close at N2.29.
Moreover, there were notable director transactions, including the acquisition of 541,499 shares by the Managing Director and CEO, as well as additional transactions from a board member.
These developments likely fueled increased buying interest and heightened investor activity in early to mid-January. After the earnings report was published, MD/CEO Valentine Chinedu Okelu commented on the company’s advancements, reassuring shareholders and stakeholders of their dedication to product innovation, research, and development. He expressed confidence in the company’s ability to meet its targets and generate sustainable value for shareholders.