Neimeth Pharmaceuticals Shares Surge 32% Amid Profit Recovery

Shares of Neimeth International Pharmaceuticals Plc have surged by over 32% in the third week of January 2025, boosting its month-to-date performance to more than 50%.

This impressive increase follows the company’s earnings report for the period ending September 30, 2024, which was released in late October. The report revealed a pretax profit of N310 million, a significant recovery from the previous year’s loss of N575 million.

For the nine-month period, revenue hit N3 billion—a 104.8% increase from the N1.5 billion recorded in the previous year—driven mainly by pharmaceutical products, which accounted for 96.5% of the total turnover. Animal health contributed the remaining 3.5%.

Neimeth also boosted its profits with ‘other income’ totaling N134.5 million, with interest income making up 70.5% and lease rental income contributing 16%.

The recent surge in the company’s share price is likely tied to the positive earnings report, alongside a series of director transactions that have taken place since November. As of January 16, the company’s shares have soared by over 50% month-to-date, supported by a trading volume of 23 million shares.

In terms of market trends, Neimeth Pharmaceuticals started January 2024 with a share price of N1.94, navigating a market volume of 55 million shares before closing the month at N1.90. The stock saw a period of stagnation during the first three quarters. However, in November, bullish momentum picked up, propelling the share price above the N2 threshold, where it closed at N2.18. December continued this upward trend, with the stock leveraging a market volume of 13.9 million shares to reach N2.29, resulting in a year-to-date performance of 18% for 2024.

As January 2025 progresses, the bullish momentum has intensified, with the company surpassing the N3 barrier and surging over 50% month-to-date, backed by a market volume of 23.5 million shares.

Several factors have likely contributed to the recent increase in Neimeth Pharmaceuticals’ share price:

• The company reported a pretax profit of N310.4 million for the nine-month period ending September 30, 2024, reversing a pretax loss of N575.1 million from the previous year, marking a 154.3% change.
• Sales also saw a significant rise, with turnover reaching N3 billion for the period, a year-over-year increase of 104.8%. Pharmaceutical products accounted for 96.5% of this sales growth.
• After the earnings report was released in October 2024, the company’s stock experienced a market volume of 19.4 million, surpassing the N2 threshold and closing at N2.29.
• Director dealings, including the purchase of 541,499 shares by the Managing Director and CEO, alongside another purchase from a board member, may have spurred increased buying interest and investor activity in early to mid-January.

Following the earnings report, MD/CEO Valentine Chinedu Okelu expressed confidence in the company’s future. He reassured shareholders and stakeholders of Neimeth’s commitment to product innovation, research, and development, stating, “We are confident we will be able to hit our targets and create sustainable value for our shareholders.”