Fidson, owned by Nigerian tycoon Fidelis Ayebae, strikes deal to establish pharmaceutical plant

Timilehin Adejumobi -
Key Points
  • Fidson Healthcare forms a strategic partnership with three Chinese firms to build a new pharmaceutical plant in Nigeria’s Lekki Free Trade Zone.
  • The new plant aims to boost Africa’s healthcare self-sufficiency, focusing on HIV treatment and leveraging advanced infrastructure.
  • Fidson's 2023 revenues surged to $37 million, with plans to raise $12.9 million for further expansion in the West African pharmaceutical market.

Fidson Healthcare Plc, a leading Nigerian pharmaceutical manufacturing company led by Fidelis Ayebae, an accomplished banker turned pharmaceutical tycoon, has announced a strategic partnership with three Chinese firms to establish a new pharmaceutical plant in the Lekki Free Trade Zone. This initiative is part of broader efforts to enhance Nigeria's fight against HIV.

The partnership, disclosed in a regulatory filing on the Nigerian Exchange (NGX), highlights Fidson’s collaboration with Jiangsu Aidea Pharma, Nanjing PharmaBlock, and the China-Africa Development Fund. The deal is part of a broader initiative to enhance self-sufficiency in Africa’s healthcare infrastructure, particularly in the battle against HIV.

West Africa’s pharma revolution

This agreement underscores Fidson's commitment to advancing healthcare across West Africa by tapping into shared expertise and resources. The centerpiece of the deal is the construction of a world-class pharmaceutical manufacturing facility within the Lekki Free Trade Zone, designed to meet global standards.

Fidson’s founder and Managing Director, Fidelis Ayebae, signed the agreement in the presence of Nigerian officials, including Babatunde Ipaye and Oshoke Ayebae. “This partnership is a prime example of international collaboration aimed at solving critical healthcare challenges,” the company said in a statement. The new plant, strategically located, is set to become a pharmaceutical hub, benefiting from the infrastructure of the Free Trade Zone to spur both economic growth and advancements in healthcare.

The deal follows months of discussions between Fidson and its Chinese counterparts, led by Aidea Pharma’s Chairman, Heliang Fu, who visited the proposed site earlier this year. Fu commented, “This partnership represents a key milestone in the global expansion of Chinese pharmaceutical expertise. Together, we are well-positioned to make significant strides in improving healthcare outcomes for African patients.”

Fidson’s financial success and strategic moves

Fidson’s founder, Fidelis Ayebae, has played a pivotal role in the company's growth, transforming it from a local distributor into a pharmaceutical powerhouse. Since launching its first local manufacturing facility in 2002, Fidson became the first in the region to produce ARV drugs in 2005.

With a 33.1-percent stake in Fidson, Ayebae is one of the wealthiest investors on the Nigerian Exchange. In 2023, the company reported revenues exceeding $37 million, a jump from N40.63 billion ($28.7 million) in 2022 to N53.05 billion ($37.48 million) in 2023. Fidson also plans to raise an additional $12.9 million through a share offering to finance further expansion efforts.