Shareholders of Neimeth International Pharmaceuticals Plc have approved an additional N30 billion capital raising programme, increasing the company's total fundraising mandate to N50 billion as it intensifies plans to expand its manufacturing capacity and product portfolio.
The approval was granted unanimously during the company's 67th Annual General Meeting (AGM), held virtually on Thursday, June 25, 2026.
The fresh authorisation builds on the N20 billion capital raising mandate approved at the company's 2025 AGM. Of that amount, Neimeth has so far raised approximately N2.44 billion through a rights issue, leaving an unused balance of about N17.56 billion.
With the new N30 billion approval, the company now has a cumulative fundraising ceiling of N50 billion, of which roughly N47.56 billion remains available for future capital raising initiatives.
Board granted broad fundraising powers
Shareholders unanimously approved all resolutions presented at the AGM, including the expanded capital raising programme.
The resolution empowers the board to source funds through a wide range of financing instruments, providing flexibility to raise capital under prevailing market conditions.
The approved options include public offers, rights issues, private placements, special placements to strategic investors, commercial papers, corporate bonds, convertible and non-convertible securities, medium-term notes, or any combination of these instruments.
The board was authorised to determine the timing, structure, tranches and terms of any capital raising exercise, subject to obtaining the necessary regulatory approvals.
To strengthen investor confidence and improve the chances of successful fundraising, shareholders also approved that any future public offer or rights issue executed under the new mandate should be underwritten on a standby basis to guarantee full subscription.
In addition, the board received authority to appoint financial advisers and other professional parties, execute all required agreements and amend the company's Memorandum of Association where necessary upon completion of any capital raising exercise.
Return to profitability
Shareholders also approved Neimeth's audited financial statements for the year ended December 31, 2025, which showed a significant turnaround in the company's financial performance.
The pharmaceutical manufacturer reported a profit before tax of N1.34 billion, reversing the N854.43 million loss recorded in the previous financial year.
Profit after tax also improved markedly, reaching N976.42 million, compared with a loss after tax of N885.33 million in 2024.
The improved earnings reflect stronger operational performance as the company continues implementing its long-term expansion strategy.
Expansion plans gather momentum
The enlarged fundraising mandate is expected to support Neimeth's ambitious investment programme, including the construction of a new pharmaceutical manufacturing facility in Nigeria's South-East, a project first unveiled at the company's 2025 AGM.
Shareholders reiterated their support for the project while encouraging management to diversify into herbal medicines and other high-growth pharmaceutical products.
If fully utilised, the N50 billion capital raising programme would represent one of the largest funding exercises undertaken by an indigenous pharmaceutical manufacturer in Nigeria and could significantly enhance the company's production capacity and competitiveness.
By securing approval to raise both equity and debt capital through multiple financing structures, Neimeth has positioned itself to access funding through whichever instrument offers the most favourable market conditions at any given time.
Governance changes
The AGM also ratified the appointment of Pharm. Obinna S. Emeribe as Executive Director, Sales and Marketing.
Emeribe brings more than 25 years of experience in pharmaceutical sales and marketing, including 15 years in senior management positions across local and multinational healthcare companies.
According to the company, he has built a reputation for driving business transformation, strategic growth, market expansion and organisational development.
Shareholders also re-elected three directors retiring by rotation—Mr. Christopher Oshiafi, Mrs. Henrietta Orjiako and Mr. Eric Okoruwa—while members of the Audit Committee were elected in compliance with Section 404(3) of the Companies and Allied Matters Act (CAMA) 2020.
Market outlook
Originally established following the management buyout of Pfizer Inc.'s 60 per cent equity stake in Pfizer Products Plc in 1997, Neimeth has accelerated its expansion efforts in recent years, supported by fresh investor interest and capital raising initiatives.
The company's shares have remained among the more actively traded pharmaceutical stocks on the Nigerian Exchange (NGX).
On Thursday, June 25, 2026, the stock closed at N8.30 per share, representing a 7.1 per cent gain from its previous closing price of N7.75.
Since opening the year at N5.80 per share, the stock has appreciated by 43.1 per cent, placing it among the stronger-performing equities on the NGX in 2026.
Despite the sizeable fundraising programme, analysts note that the combined N50 billion capital raising mandate exceeds Neimeth's current market capitalisation of approximately N35.5 billion, suggesting that any large equity issuance could dilute existing shareholders' stakes.
However, the company appears to be betting that investments in new manufacturing facilities, expanded production capacity and broader product offerings will generate stronger revenues and earnings over time, ultimately delivering long-term value for investors.
The expansion also comes as Nigeria's pharmaceutical industry continues to grapple with rising production costs, exchange rate pressures, expensive imported raw materials and increasing demand for locally manufactured medicines, making capacity expansion a strategic priority for many indigenous drug manufacturers.