Nigeria’s pharmaceutical sector has emerged as one of the stock market’s strongest performers in 2025, with Fidson and May & Baker recording year-to-date gains of 117 percent and 86.2 percent, respectively, as of 16 September 2025.
In a market still navigating persistent inflation, currency volatility, and uneven corporate earnings, investors appear to be placing their bets on healthcare companies as a source of both growth and relative stability.
The surge in pharma shares stands in sharp contrast to sectors struggling under economic headwinds. Industrials, real estate, and select consumer goods companies continue to face compressed margins due to rising input costs and FX fluctuations, highlighting a widening performance gap between healthcare and other sectors.
Fidson and May & Baker have benefited from resilient domestic demand and strong earnings, cementing their positions as top leaders in Nigeria’s equity market.
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The rally builds on robust H1 2025 results. Fidson’s after-tax profit surged almost fourfold to N6.02 billion, while May & Baker posted a 150 percent increase in profit to N876.6 million.
Revenue growth and operational efficiency, supported by reduced foreign exchange losses compared with 2024, helped both companies maintain healthy margins despite elevated input costs and inflationary pressures.
Yet, beneath these headline figures lies a nuanced story. Operating cash flows were negative for both companies, driven by higher trade receivables and prepayments, while debt levels rose.
Fidson doubled its borrowings, and May & Baker’s debt climbed 28 percent. Rising finance costs, including a 77 percent jump for May & Baker, underscore that while growth has been rewarding, it comes with financial leverage that investors will be monitoring closely.
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The market’s response indicates confidence that these firms can continue to manage liquidity and debt pressures while expanding market share. Strong domestic demand for healthcare products, combined with government incentives supporting local manufacturing, has strengthened the sector’s growth outlook and helped limit currency-related margin erosion.
Fidson’s strategic product expansion and distribution reach, alongside May & Baker’s deepening market footprint, have further bolstered investor sentiment.
As domestic production scales up and healthcare consumption continues to rise, Fidson, May & Baker, and their peers are likely to sustain investor interest. Their performance illustrates how a combination of operational discipline, strategic positioning, and alignment with national economic priorities can deliver shareholder value even amid macroeconomic uncertainty, positioning the pharmaceutical sector as a rare bright spot in Nigeria’s equity market in 2025.