Nigeria’s pharmaceutical sector has emerged as one of the stock market’s strongest performers in 2025.

Fidson and May & Baker have recorded impressive year-to-date gains of 117 per cent and 86.2 per cent, respectively, as of September 16, 2025.

This growth is attributed to resilient domestic demand and strong earnings, which have cemented their positions as top leaders in Nigeria’s equity market.

The rally is built on robust H1 2025 results, with Fidson’s after-tax profit surging almost fourfold to N6.02 billion and May & Baker posting a 150 per cent increase in profit to N876.6 million. Revenue growth and operational efficiency, supported by reduced foreign exchange losses, have helped both companies maintain healthy margins despite elevated input costs and inflationary pressures.

However, a closer look reveals a nuanced story. Operating cash flows were negative for both companies due to higher trade receivables and prepayments, while debt levels rose. Fidson doubled its borrowings, and May & Baker’s debt climbed 28%. Rising finance costs, including a 77% jump for May & Baker, indicate that growth comes with financial leverage that investors will monitor closely.

The market’s response suggests confidence in these firms’ ability 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 demonstrates how operational discipline, strategic positioning, and alignment with national economic priorities can deliver shareholder value even amid macroeconomic uncertainty.