NIGERIA – May & Baker, one of Nigeria’s leading pharmaceutical companies, has received a US$2.58 million (N 1 billion) from the Central Bank of Nigeria’s intervention fund to support business operations.

The central bank also announced an N50 billion Covid-19 health care fund for the healthcare sector giving the company another unique opportunity to increase its financial muscle.

The loan from CBN follows an aggressive campaign by May & Baker to expand its range of pharmaceutical offering to the Nigerian market.

Last year, May & Baker reported that it had signed a partnership agreement with the French pharmaceutical giant, Sanofi to produce four brands of the latter.

The four Sanofi products, which would be manufactured by May & Baker Nigeria, will be sold in Nigeria and West African markets.

May & Baker also recently reported that it had signed a Joint Venture Agreement to produce a nutritional supplement with FIIRO through the Ministry of Health.

 A report by Naira Metric indicated that the intervention loan from CBN came in handy for May & Baker which was running low on finances.

The Pharmaceutical company is reported to have spent its 2019 N1.8 billion Rights Issue servicing debt and paying dividends.

Central Bank of Nigeria’s intervention was timely as it was released just before the COVID-19 pandemic broke across the country causing an economic shut down that has negatively impacted industries across the country.

May & Baker is now well-positioned to take advantage of the expected resurgence of the health care sector, particularly since the 2020 COVID-19 pandemic broke.

The loan however increases the company’s net loans from N482.5 million in December 2019 to N1.7 billion in the first quarter of this year.

May & Baker earns 99% of its revenue from its Phamaceutical division. Its beverage division remains a small portion of its business.

The Company has three subsidiaries, Osworth Nigeria Limited, Tydipacks Nigeria Limited, and Service Nigeria Limited, and has the majority shareholding in Biovaccines Nigeria Limited, all based on a collaboration with the Federal Government for production and sale of vaccines.

This is not the first time the company had received intervention funds; it had also received a CBN fund for manufacturers to the tune of N920 million in October 2010.

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