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Enriching Lives through Innovation in Pharmaceuticals

MeCure Industries Plc

Facts Behind the Listing

November 2023
 Samir Udani
Chairman

Founded the Company in 2005

• Over 35 years industry experience and Businessman of the

year, Healthcare, Nigeria in 2009

Anderline Dukor Arjun Udani

Co-CEO (Regulatory Affairs, Manufacturing, Quality Control Co-CEO ( Finance and Accounts, Logistics, Procurement and
&Assurance and Human Resources) Stores)
Joined MeCure in 2008 Joined the Company in 2011

• 23 years pharmaceutical and healthcare industry experience • Over 12 years of pharmaceutical industry experience
• Oversees procurement activities of MeCure • Involved in the development of 97 nutraceutical supplement
under the brand of Youthberry

Chidi Okoro
Felix Anaje
Executive Director (Sales & Marketing) Non Executive Director

Joined the Company in 2019 Joined the Company in 2019

• Anaje is an experienced Sales and Marketing professional. • Over 30 years sales and pharmaceutical experience.
• Oversees Sales and Marketing, Business Management,
Operations Management and Relationship Management

... Enriching Lives through Innovation in Pharmaceuticals

Outline

01 Overview of MeCure Industries Plc

02 MeCure’s Operating Environment

03 Financial Highlights and Performance

04 Management Strategy and Outlook

... Enriching Lives through Innovation in Pharmaceuticals

 Section One
Overview of MeCure Industries Plc

... Enriching Lives through Innovation in Pharmaceuticals

Overview of MeCure Industries Plc
... An Innovative Pharmaceutical Company with Significant Milestones and Scalable Operations

Overview Mission Vision

MeCure Industries Limited was

incorporated on 16 March 2005 as a To contribute to the enrichment of life
private limited liability company. The around Nigeria, through the creation
Enriching lives through innovation in
Company is principally in the business of of innovative generic and specialty
pharmaceuticals.
manufacturing drugs in Nigeria under two pharmaceutical drugs and innovative
categories; pharmaceuticals and delivery system.
nutraceuticals.
Service Offerings Key Milestones

Became one of the largest Launched it’s first Bond series

Incorporated as a private
manufacturers of formulation of in the Nigeria Debt Capital
2005 limited liability company in 2015 Ampicillin Cloxacillin locally and 2021 Market
OTC Medicines Nigeria
globally

Introduced Tropical Pack as In house product development of

the first local producer in 200+ prescription chronic & acute Converted to PLC, and
Branded Generics 2007 Nigeria 2016 medications 2022 commenced the process for
the listing on the NGX

Diversified into manufacturing Introduction of Youthberry. Received approval from SEC

Dry Syrup and medications of Developed and marketed and the NGX to be listed on
Dietary Supplements 2009 Oral Liquid 2018 HelloDoc App – a community 2023 the standard growth board of
recognising and promoting the the NGX
welfare of doctors in Nigeria

Introduction of Unit Dosage

ISO 9001:2015 accreditation in
System from Sarong, Italy
2011 2020 process
1LIMS: Laboratory Information Management System

... Enriching Lives through Innovation in Pharmaceuticals

Overview of MeCure’s Ecosystem
... Excellent Service Delivery Underscored by our Awards and Certifications
ACCOMPLISHMENTS/AWARDS
▪ MIPLC has a sister
company named Best Diagnostic Services Company of 1st diagnostic center to introduce
MeCure Healthcare the Year in Africa - 2019 Telemedicine and state of the art 1.5
Limited or “MHL” tesla MRI and Cardiac CT state-of-
which is a leading Africa Brand Congress African Brand Congress Telemedicine the-art
healthcare diagnostics
company providing 1st healthcare app in Nigeria with 1st company in Nigeria to host
affordable and GPS technology telemedicine, second medical
opinions, and online results.
accessible investigative
GPS Technology Telemedicine
diagnosis through
world class healthcare 2-time winner “Best Diagnostic
facilities. Eye Service Provider of the Year - Service Company of the Year” – 2009,
2015 2010
▪ Over the years, the Nigerian Healthcare Nigerian Healthcare Excellence Lagos State Government
Excellence Awards Awards LEAD Award
Company and its sister
company have been Best Healthcare Company in West
Best Diagnostic Service Company of
recognized for their the Year - 2015 Africa - 2009
numerous African Governance and Corporate IDMN
accomplishments AGCL Award Leadership (AGCL) Awards IDMN
across the
pharmaceutical and
healthcare industry MeCure Rating
value chain.
A1 A2

... Enriching Lives through Innovation in Pharmaceuticals

Overview of MeCure Industries Plc
... Positioned Strategically with Significant Growth Potential

Investment Highlights Revenue/Net Income Growth Trend

…Strong Brand … Large Growing Market 30000 Revenue Net Income growth 12.00%
• Pharmaceutical market sales expected to 26,642
• The MeCure brand has developed over
grow at 5.4% CAGR (2018 - 2022) and 25000 10.00%
the 30 years of its existence
likely to exceed this with increasing 20,698
• Known for quality and trusted by lifestyle disease prevalence 20000 8.00%
17,418

N’millions
customers, distributors, suppliers, 15,814
shareholders, employees, etc.) • Key growth drivers include diverse
15000 6.00%
product portfolio, distributor strength
• Proven ability to deliver growth its
and brand
stakeholders (based on historical revenue 10000 4.00%
and market share growth
5000 2.00%
…Higher Market Share
• Pharmaceutical market largely import 0 0.00%
dependent (est. 70.0% - 75.0%) 2019 2020 2021 2022
MeCure’s Market Share*
• Local production largely fragmented
• Serious local players able to gain market
share from imports supported by on FY23E
ground local presence and relationships
with distributors FY22A
…Experienced Management
…Broad Product Range • Strong and experienced management team,
with combined 150 years’ experience across FY21A
• Large existing product portfolio
33.94%
multiple disciplines with deep
comprising 64 mass market products and understanding of the pharmaceutical
25.16%
93 nutraceuticals industry 23.13%
• Led the Company’s transformation over the
• Pipeline of up to 251 new molecules at
years and succeeded in increasing asset and
various stages of approval *Based on listed pharmaceutical sales figure (NGX)
customer base and enabled strategic
alliances.

... Enriching Lives through Innovation in Pharmaceuticals

Overview of MeCure Industries Plc
…Robust Product Portfolios to Achieve Topline and Bottomline Targets

Manufacturing Revenue (N’Mn): Manufacturing

▪ The Company
• Products in this category include the following;
principal business
o Analgesic
include 26,642
manufacturing, o Antacid
distribution and o Antimalaria 17,990

sale of o Antibiotics 11,287

13,541 12,717
pharmaceutical
and nutraceutical
products.
2018 2019 2020 2021 2022
▪ MeCure
commenced the
Distribution and Sale Revenue (N’Mn): Nutraceutical
trading of 4,701
nutraceuticals in • The Company distributes and sells pharmaceutical and
2018 and has so nutraceutical products
far developed 93 • The Company finalized preparations for trading of 2,702
products under nutraceuticals in 2017 and commenced trading in 2018. 1,941
the flagship of 1,720

Youthberry. • So far, it has 93 nutraceutical products marketed under

the Youthberry brand.

• In 2022, the Company generated a total of N2.10billion

2018 2019 2020 2021
from the sale of nutraceutical products

... Enriching Lives through Innovation in Pharmaceuticals

Overview of MeCure Industries Plc
...Well Defined Operations, Productions and Distribution Process

▪ The Company has a OPERATION PROCESS PRODUCTION PROCESS MULTI-CHANNEL DISTRIBUTION PROCESS
well-defined and
clearly outlined
operations, production REQUISITION • Products are sold to distributors
in wholesale quantities at the
and distribution • Requisition is made for

DISTRIBUTORS
major markets in four strategic
processes, specific to raw materials by the TABLETS CAPSULES SYRUPS

B2B
commercial cities (Kano,
each of its product production department. Anambra, Lagos & Abia)
categories; tablets, • Products are delivered through
capsules, wet syrups Granulation Blending Sugar Making depots located in these cities.
and dry syrups. • Production department
CONFIRMATION

checks store for

PHARMACISTS
▪ The processes of the availability of quantity • Business to Customer (B2C)

TELE-
Company have been

B2C
demanded. Upon distribution is through MeCure
designed in line with confirmation, raw Compression Sifter Cooling Smart Buy and HelloDocApp
global best practices materials are supplied.
and in conformance
with applicable • The raw materials • Engagement with senior
legislations. supplied are transferred management of top HMOs for
QC CHECK

to the Quality Control Coating Encapsulation Mixing supply of pharmaceuticals to

B2B2C
their partner hospitals in order

HMO
Accreditations (QC) department for
checks by the QC to provide cost management
solutions particularly for chronic
experts.
ailments which are lifetime
Packing Packing Filing prescriptions
• After the raw materials
DISPENSARY

pass the QC check, they

40+
are sent to the 100+ Potential
dispensary for collection 4 Depots
FINISHED GOODS Distributors HMO
at the production room. Partnerships

... Enriching Lives through Innovation in Pharmaceuticals

MeCure Industries Plc – Board of Directors
...Diverse and Strong Board

Arjun Udani Anderline Dukor

Samir Udani Co-Chief Executive Officer(Regulatory Affairs,
Co-Chief Executive Officer(Finance&
Chairman Manufacturing, Quality control & Assurance and
Account, Logistics, Procurement, and
▪ >35 years of healthcare and Human Resources
Stores)
managerial experience. ▪ >10 years experience in teaching
▪ >12 years of pharmaceutical industry
▪ B.Sc., Chemistry and Physics from hospitals and pharmacies.
experience.
Mumbai University, india. ▪ B.Sc., Pharmacy, University of Nigeria;
▪ B.Sc, Business Management, Mumbai
▪ Also an alumnus of the University M.Sc., Clinical Pharmacy, University of
University, India;
Institute of Chemical Technology, Lagos, Nigeria;
▪ Degree in Advanced Project
India. ▪ M.Sc., Public Health, Lagos State
Management, Stanford University,
California. University, College of Medicine .

Anaje Felix Emeka Dr. Ajie Obiefuna Benedict Agbo

Executive Director(Sales &Marketing) Executive Director Non- Executive Director
▪ >15 years of pharmaceutical ▪ Former lecturer at the Lagos State
industry experience. Teaching Hospital (LUTH). ▪ BSc, Biochemistry;
▪ B.Sc, Biochemistry, Nnamdi Azikiwe ▪ B.Sc., Medicine & Surgery (MBBS), ▪ Masters in Pharmaceutical
University; University of Nigeria, Enugu Chemistry;
▪ Masters, Business Administration, Campus; ▪ Masters in International Law and
Ladoke Akintola University. ▪ M.Sc., Pharmacology, University of Diplomacy;
Lagos. ▪ PhD in Biochemistry(Molecular
biology).
Ayotunde Owoigbe Chidi Okoro
Non-Executive Director Independent Director

▪ >19 years of legal experience. ▪ >30 years of sales and

▪ LLB, University of Lagos pharmaceuticals experience.
▪ Chairman, Capital Market Solicitors ▪ B.Pharm., Pharmacy, University of
Association; Nigeria;
▪ Partner, Banwo & Ighodalo. ▪ Masters, IE Business School;
▪ MBA, Marketing, University of
Lagos.

... Enriching Lives through Innovation in Pharmaceuticals

MeCure Industries Plc – Management Team
... Supported by an Experienced Management Team

Arjun Udani Anderline Dukor

Co-Chief Executive Officer(Finance& Account, Logistics, Co-Chief Executive Officer(Regulatory Affairs, Manufacturing,
Quality control & Assurance and Human Resources)
Procurement, and Stores)

▪ >12 years of pharmaceutical industry experience. ▪ >10 years experience in teaching hospitals and
▪ B.Sc, Business Management, Mumbai University, pharmacies.
India; ▪ B.Sc., Pharmacy, University of Nigeria; M.Sc., Clinical
▪ Degree in Advanced Project Management, Stanford Pharmacy, University of Lagos, Nigeria;
University, California. ▪ M.Sc., Public Health, Lagos State University, College
of Medicine .

Anaje Felix Emeka Ifedamola Oluwasegun

Executive Director (Sales & Marketing) Chief Financial Officer
▪ >13 years experience across
▪ >15 years of pharmaceutical commercial banking, trade finance,
industry experience. business development and
▪ BSc, Biochemistry, Nnamdi Azikiwe Investment banking
University; ▪ MSc, Finance, Accounting & Mgt,
▪ Masters, Business Administration, University of Bradford, UK.
Ladoke Akintola University.

Nitesh Gupta Sameep Moore Kemi Ipinnaye

Chief Operating Officer Chief Technology Officer Head, Human Resources
▪ >27 years of pharmaceutical ▪ >12 years of leading, design, and ▪ >10 years experience in Human
manufacturing experience. development of large scale software Resource Management.
▪ B.Sc. and M.Sc., Pharmaceutical solutions experience. ▪ B.Sc., English and Literature, Kogi
Sciences ▪ Chartered Accountant State University;
▪ Experience spans across Pharmacy, ▪ B.Sc., Engineering, Mumbai ▪ Member of Chartered Institute of
Manufacturing, Business and University. Personnel Management. (CIPM)
Operations Management.

... Enriching Lives through Innovation in Pharmaceuticals

 Section Two
MeCure’s Operating Environment

... Enriching Lives through Innovation in Pharmaceuticals

MeCure’s Operating Environment
…Significant Growth Potential embedded within the Nigerian Pharmaceutical Industry

Federal Government Recurrent Expenditure on Health (₦' Billion) Contribution of Pharmaceutical Industry to GDP
The steady increase in government recurrent healthcare expenditure since 2017 except FY2020 is The pharmaceutical industry contributes sub 1% of the country’s total output amidst a huge
an indicator of the increased attention to the growth of the healthcare industry growth potential.

0.50%
462.85 0.42%
415.24 0.38% 0.37% 0.36% 0.36%
388.37 0.33% 0.32% 0.35%
363.06 0.32% 0.32% 0.31%
0.27% 0.29%
296.44
245.19

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2017 2018 2019 2020 2021 2022
2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023
Healthcare Expenditure as a % of GDP (Nigeria vs Select Developing Countries) Private Expenditure on Healthcare (Nigeria vs Select Developing Countries)
Nigeria’s healthcare expenditure as a percentage of GDP is well below the World and Sub-Saharan The significant proportion of private expenditure on healthcare in Nigeria (comprised primarily of
Africa averages as well as that of other peer developing countries highlighting the significant out-of-pocket spending) is reflective of the strong effective demand (characterized by a willingness
growth potential within the industry and ability to pay) for healthcare

10.89%
10.31%
8.58% 75.0%
69.6%

4.92% 54.0%
4.62%
3.99% 44.2%
3.38% 2.96% 40.1% 38.7%

World Brazil South SSA Turkey Ghana Nigeria India Nigeria India Brazil China Ghana Kenya
Africa

... Enriching Lives through Innovation in Pharmaceuticals

MeCure’s Operating Environment
…Positive outlook in the Nigerian Pharmaceutical Industry Underscored by Recent Trends
COVID-19 AND THE PHARMACEUTICAL INDUSTRY
▪ The novel Covid-19 pandemic has had varying impacts on various sectors and industries globally. In Nigeria, the pandemic ignited
an increased need for expansion and capacity building industry wide. Broadly, the outlook for the pharmaceutical industry
remains very positive into the future.
▪ In line with this, the CBN announced a NGN100billion intervention fund in healthcare loans to pharmaceutical companies.

INCREASED USE OF TECHNOLOGY

▪ The Pharmaceutical industry has also benefitted from the increased use of technology in the entire healthcare sector. Several
mobile apps have been designed to offer basic pathological services, access to medical doctors as well as delivery of
pharmaceuticals all in the comfort of patient’s various homes.
▪ This has assisted in increasing the access to healthcare services in general nationally.

HEALTHCARE ORGANISATIONS AND DEEPENING PENETRATION;

▪ As Health Management Organisations (HMO) continue to grow within the Nigerian healthcare industry, the level of
pharmaceutical coverage has grown alongside as more people now have an increased access to medical services by only making a
periodic payment. In many cases, these expenses are not borne directly by the beneficiaries of these services.

RECIPIENT OF GOVERNMENT AND MONETARY SUPPORT

▪ The industry has received significant support from the government ranging from grants, partnerships, low interest loans and
favourable policies in line with the government’s objective of creating a sustainable healthcare sector. In 2020, the CBN and the
bankers committee engaged several local pharmaceutical companies as part of their healthcare intervention programme.

HEAVY RELIANCE ON IMPORTS

▪ The local market for the manufacturing of many chronic medications remains largely untapped as the industry is highly reliant on
imports. This huge gap in local manufacturing presents a significant opportunity for local pharmaceuticals with sufficient capacity
to tap into. With GSK’s exit, focus needs to be placed on developing and promoting locally manufactured pharmaceutical
products, potentially reducing dependency on imported goods and fostering a more self-reliant healthcare system.

... Enriching Lives through Innovation in Pharmaceuticals

 Section Three
Financial Highlights and
Performance

... Enriching Lives through Innovation in Pharmaceuticals

Financial Highlights and Performance

…Growth in topline and Encouraging Cost Management Despite High Inflation

Revenues (N’bn) Finance Cost (N’bn) Profit After Tax (N’bn)

21.58 20.81 1.71 1.987 1.995

4% 39% 1.23
-0.39%

YoY Growth YoY Growth YoY Growth

Q3'23 Q3'22
Q3'23 Q3'22 Q3'23 Q3'22
Q3 2023: N21.58Billion Q3 2023: N1.71Billion Q3 2023: N1.99Billion

Total Assets (N’bn) Total Equity (N’bn) Total Liabilities (N’bn)

23.22
34.53 11.30
19.11
34% 25.84 68% 22%
6.73

YoY Growth YoY Growth YoY Growth

Q3'23 Q3'22
Q3'23 Q3'22 Q3'23 Q3'22
Q3 2023: N34.53Billion Q3 2023: N11.30Billion Q3 2023: N23.22Billion

... Enriching Lives through Innovation in Pharmaceuticals

Financial Highlights and Performance
…Consistent Growth Across Key Metrics
Gross Profit and Operating Profit (N’Bn) Revenue (N’Bn)

Gross Profit Operating Profit 26.64

9.15
20.69 21.58
7.48
6.78 17.42
15.81
5.57 5.26
5.16
4.36
3.54
2.14 2.39

2019 2020 2021 2022 9M'23* 2019 2020 2021 2022 9M'23*
Profit Before and After Tax (N’Bn) Total Assets and Total Liabilities (N’Bn)
PBT PAT Total Assets Total Liabilities
3.78
34.53

2.61 2.65 26.64

23.22
1.99 19.67
1.79 16.73 17.68
13.69 14.94
12.05
0.95 9.67
0.82 0.83
0.66 0.67

2019 2020 2021 2022 9M'23* 2019 2020 2021 2022 9M'23*

... Enriching Lives through Innovation in Pharmaceuticals

Financial Highlights and Performance
…Steady Growth in Margins Supportive of Performance

Gross Profit Margin and Operating Profit Margin Return on Equity

Gross Profit Margin Operating Profit Margin 30% 28.00%

25%
34.47% 34.64%
32.63% 31.97% 32.76%
20% 17.58%
14.06% 14.21%
19.73% 20.21% 15%
17.08%
13.51% 13.75% 10% 7.55%

5%

0%
2019 2020 2021 2022 9M'23* 2019 2020 2021 2022 9M'23*
Net Profit Margin Return on Assets

10% 9.21% 12%

8.65%
9%
9.66%
10%
8%
7%
8%
6%
5.76%
5% 6%
3.78%
4% 3.25% 3.93%
2.82% 4% 3.42%
3%
2.22%
2%
2%
1%
0% 0%
2019 2020 2021 2022 9M'23* 2019 2020 2021 2022 9M'23*

... Enriching Lives through Innovation in Pharmaceuticals

 Section Four
Management Strategy and Outlook

... Enriching Lives through Innovation in Pharmaceuticals

 Management Strategy and Outlook
…Strategic Projects & Products Supportive of Growth and Expansion Drive

Beta-lactam Department Corticosteroid standalone manufacturing plant

To manufacture beta-lactam tablets and
Produces Dexamethasone and Prednisolone tablets
dry syrup
• The first choice of any doctor for steroid
• Costs 4.5bn on completion
treatment in inflammation, serious injuries ,
• Revenue impact of N8bn in 2024 at
tertiary disorders. e.t.c
70% capacity utilization and 12bn in
• Market size- To be used for human and
2025.
vertinary use
• It is an import substitute
• Revenue of approx. N3b per annum
• Market size is over N500bn
• This will be the first and only Corticosteroid
• First choice of antibiotic for bacterial
plant in Nigeria.
infections.
• Qualify for pioneer status and tax holiday
• Qualifies for a pioneer status and tax
holiday.

... Enriching Lives through Innovation in Pharmaceuticals

Management Strategy and Outlook
…Strategic Projects & Products Supportive Of Growth and Expansion Drive Cont…

• Additional 180 molecules in the pipeline. Planned Products/Molecules

✓ More than doubling MeCure’s existing Number of
Product Segment Category
products from 74 to 254. Products

• New molecules to be added will focus on • Antiplatelet

chronic medicines and nutraceuticals. • Laxative
• Oral rehydration salt
✓ Additional tableting lines and beta- • NSAID
• Antihistamine
lactum capsules lines are being • Antidiarrheal
developed. Acute Medicines
• Anticholigenic
•
•
Gastrointestinal
Prostate enlargement
14
• Antiplasmodic
✓ Plans for local production of therapy
• Antifungal
nutraceuticals under Youthberry brand is
ongoing with the expectation to • Diuretic
commence production in Q4 2024.
• Antiarrhythmic
• Oncology molecules to be imported from • Vasodilator
• Antihypertensive
Europe and Asia. • Antianginal
• Lipid-regulating
• Product launch will fall into two categories
Chronic Medicines
• Corticosteroids
•
•
Antipsychotics
Anticonvulsant
98
- mass market and prescription. • Anti-diabetics
• Anti-rheumatics
✓ Mass market is distributor led and
distributors push available products. • Osteoporosis

✓ Prescription medicines category will be

largely driven via HMO partnership.
Nutraceuticals • Supplements 60
• New molecules are at various stages of
approval process. • Anticancer
Oncology
• Antimetabolite 8
... Enriching Lives through Innovation in Pharmaceuticals
Management Strategy and Outlook
…Retail Strategy Driven by Technological Innovation and Adaptation

TRACK & TRACE

Track & Trace is a technology which can track product’s
current or past locations throughout its supply chain
right from the factory to pharmacist store where it is
being sold.

Key Offerings

• GS1 certified barcodes.

• Real time tracing for regulators, brand owners and
consumers.
• Eliminates the nuisance of counterfeit drugs.

... Enriching Lives through Innovation in Pharmaceuticals

Management Strategy and Outlook
…Growth Drivers

Increase Production
Capacity • Indicatively, 70%-75% of pharmaceutical formulations are • Planned expansion to grow tablet and beta lactum capsule
still imported, giving an indication of the gap from self capacity.
sufficiency.

Expansion in New
Molecules • Chronic segment is the fastest growing pharmaceutical • MeCure has identified 98 formulations covering over 15
segment in the world including Africa. categories that are good for chronic ailment.

Chemotherapy
Medication
• Advanced discussions with manufacturers of oncology
• Chemotherapy medication is currently import dependent medication to produce small lots of newer more effective
with limited suppliers. molecules for MeCure

Opportunities Outlook

... Enriching Lives through Innovation in Pharmaceuticals

Management Strategy and Outlook

Beta-lactam Department – Ongoing Installation

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THANK YOU FOR LISTENING.

... Enriching Lives through Innovation in Pharmaceuticals