Emzor raises N26.7bn bond to boost local drug manufacturing
Emzor Pharmaceutical Industries Secures $19.8 Million Bond to Enhance Local Drug Manufacturing
By Yinka Kolawole
Emzor Pharmaceutical Industries has successfully raised a $19.8 million (N26.7 billion) Series 1 Fixed Rate Bond on the FMDQ Group Exchange. This initiative aims to bolster local pharmaceutical manufacturing and facilitate the completion of West Africa’s first full-scale anti-malarial Active Pharmaceutical Ingredient (API) manufacturing facility.
The bond, issued through Emzor’s special purpose vehicle, Emzor Pharma Funding SPV Plc, features a 19 percent coupon over a five-year period. This issuance is part of Emzor’s larger N40 billion ($29.6 million) bond issuance program and marks the company’s second domestic bond, which was oversubscribed due to strong investor interest.
Funds raised will be utilized to support working capital, expand manufacturing capacity, and expedite the completion of the API facility. This development represents a pivotal transition for Emzor, which is evolving from a local medicine manufacturer to a producer of critical pharmaceutical inputs. Additionally, this initiative aligns with Nigeria’s strategy to reduce reliance on imported medicines and raw materials.
Founded in 1977 by pharmacist Stella Okoli, Emzor began as a small chemist shop in Lagos and has since grown into one of Nigeria’s leading pharmaceutical manufacturers, offering over 120 medicines across 16 therapeutic categories.
A significant aspect of Emzor’s investment is the completion of its anti-malarial API plant. APIs are the active substances in medications that provide therapeutic effects. Currently, a majority of the global supply of pharmaceutical ingredients is concentrated outside Africa, leaving local manufacturers vulnerable to disruptions in international supply chains, foreign exchange shortages, and exchange-rate fluctuations.
Establishing local production of APIs could mitigate these vulnerabilities by fortifying domestic pharmaceutical supply chains and enhancing manufacturers’ access to essential inputs. For Nigeria, where reliance on imported pharmaceutical ingredients and finished products remains high, this investment could improve supply security, alleviate import-related cost pressures, and foster the development of a more resilient pharmaceutical manufacturing sector.
Emzor’s recent fundraising marks not only a step forward in its expansion efforts but also indicates a broader commitment to increasing local value addition in Nigeria’s pharmaceutical industry.
