Fidson Healthcare PLC is heavily publicising it’s investment and future direction. And rightly so.
Fidson manufactures tablets, pastes, creams, capsules and now intravenous fluids containing antibiotics and other healthcare related active ingredients.
Their strategic plan has been to expand production in volume and range, through the building of a WHO compliant manufacturing facility and management process.
This plan has been in the works for a while but was delayed by the foreign currency scarcity of recent years.
The Fidson business model is to import the main ingredients for the products and assemble them in their Nigerian facility (for example, import the antibiotic powder in order to assemble it with fusible capsules in their Nigerian production line).
Along with other “manufacturers” who follow the same model (Cowbell and Peak being great examples), they were badly hit by the fall in the Naira and their inability to find dollars to pay for imports of their prime ingredients.
With dollars being more available and their production facility now ready to go, they look poised to meet the needs of the country for some years to come. The WHO certification also means that their credibility and potential contacts may increase as a result.
Including exports and contacts from global organizations.
Fidson is one to watch over the next few years and the company is poised to go from strength to strength provided their import and assembly model can withstand any further battering from Naira value and dollar availability.
Perhaps the biggest risk they face is that given their growth through debt financing, they may be more susceptible to these exchange rate fluctuations and issues than before.
That notwithstanding, the management of Fidson need to be applauded.