June 10, 2024/FSDH Research

the LAUNCH of the MeCure Industries Plc’s (“MeCure”) ₦6.5 billion Series 12 Commercial Paper Issuance (“Transaction”) under its ₦20 Billion Commercial Paper Issuance Programme. The offer is NOW OPEN and scheduled to close on Wednesday, 19th June 2024.

MeCure Industries Plc, a leading human therapeutics company in the Nigerian pharmaceutical industry, recently converted to a Public Limited Company (PLC) and listed its shares on the NGX trading platform, fulfilling its promise to investors. For close to two decades, MeCure has significantly advanced the pharmaceutical manufacturing sector in Nigeria through technology and innovation, pioneering novel products such as the Liquitab Floatcap, the industry’s first tablet-in-a-capsule formulation.

In October 2023, MeCure commenced the installation of its Beta-Lactam plant for manufacturing beta-lactam tablets and dry syrup, including combination antibiotics such as Amoxicillin-Clavulanic acid (Amoxyclav), a leading antibiotic for bacterial infections with a market size exceeding ₦500 billion. This new facility positions MeCure as the first local manufacturer to produce Amoxiclav locally. It is projected to generate ₦8 billion in revenue in 2024 at 70% capacity utilization, increasing to ₦12 billion in 2025. The plant was completed in Q1 2024 and received NAFDAC approval for local production on April 30th. Concurrently, the company initiated the installation of a corticosteroids plant for treating inflammatory conditions, expected to be completed in Q2 2024. These new product lines are anticipated to significantly boost the company’s revenue growth.

In November 2023, the company listed 4 billion ordinary shares on the NGX Growth Board, achieving one of the largest market capitalizations in the growth segment. The listing has resulted in a substantial share price increase, reflecting strong investor confidence, and raising the total market capitalization to a new high.

The company’s stable and experienced executive management team has a history of consistent superior financial performance and returns. In 2023, MeCure’s revenue increased to ₦31.8 billion, a 19.2% rise from the previous year, driven by increased product volumes and average unit prices. MeCure’s profit after tax also saw an 11.7% increase, underscoring its effective market penetration, product innovation, and expansion strategies.

MeCure Industries Plc has a stable outlook with short-term ratings of A2 by GCR and A1 by Data Pro, demonstrating its financial stability and commitment to delivering exceptional value to stakeholders in the pharmaceutical industry.

Please see below the indicative rates and other details of the proposed offer:

*Kindly note that the yield payable on the Note is subject to Withholding Tax (WHT) except for exempted investors (E.g., PFAs).

Please see the link to the supporting Issue documents for your review and consideration:

• Programme Memorandum
• Series 12 Pricing Supplement
• Series 12 Commitment Form
• Investors’ Presentation
• GCR Issuer Rating Report
• DataPro Issuer Rating Report
• Supplemental Prospectus
• Mecure Industries Plc Audited Financial Statements (2019-2023)
• Mecure Industries Plc Q1 2024 Unaudited Financial Statement
• 2024 Pencom Compliance Certificate