Neimeth plans to rejig operations for profitability

Neimeth International Pharmaceuticals Plc has concluded plans to enhance capabilities with a view to stabilizing business and profit in 2015.

According to its Managing Director, Mr. Emmanuel Ekunno, who disclosed this Tuesday in Lagos during the company’s 56th Annual General Meeting, the company will ensure strong marketing footprints for an envisaged organic growth.

He stated that its expansion drive would focus on increased market share, high level awareness and demand generation in 2015.  He informed the shareholders that imported finished pharmaceuticals have been positioned to leverage business in 2015.  The key drivers are ACTs, analgesics and ncp (liquid antiseptic).

His words: “Our ambition to introduce two new products every quarter for the next 10 quarters  is being sustained with the recent launch of Co-Amoxiclav (antibiotics)  and Norduet – a novel antihypertensive and first of its kind in Nigeria.”

The company is working on other products which are at different levels of Research and Development(R & D) in relevant therapeutic segments.  Ekunno also informed the shareholders that the company’ hand sanitizers are ready for launch.  He assured the shareholders of the readiness of the company to sustain quality at all times despite the tough operating environment.

Result declared showed that business declined by 20 per cent when compared to the impressive growth of 30 per cent recorded in 2014, while the shareholders’ fund decreased by eight per cent.  The company declared a turnover of N1.528billion, Loss Before Tax (LBT) stood at N198million and Loss After Tax (LAT) at N228.5million.

Giving reasons for this, Ekunno explained that production difficulties, arising from necessary replacement of obsolete/ non-GMP(Good Manufacturing Practice) compliant machines jointly contributed to the 2014 result.

He, however, allayed the fears of the shareholders on the company’s prospects as a going concern, saying that it has adopted five business strategies to turn around the fortune of the business. “The first is machinery. With machinery fully completed, we expect cost reduction, profit will catapult and capability will be enhanced. The second, to be launched in July, is multi-media efforts to build advert campaigns. Media focus will  continue to be our priority in 2015 as 85 per cent of our volume drivers are undeniably advert-driven.

“The next is new products. We are working on other products that are  currently on different levels of R & D in relevant therapeutic segments. Others are anti-malarials, hand sanitizers and different types of injectables.

The fourth is distribution. On this, we have a partner which specializes only in distribution and will help to distribute Neimeth products at the desired points of sale.So as from April, we will not do anything else than generating the mark. The last is R & D.This is a long way but the right way to go.We are working hard  to bring out products that are Nigerian friendly. By this time of next year, we will all turn all these strategies into profit,” he said.