By Nse Anthony-Uko
(Sundiata Finance) — May and Baker Nigeria Plc has recorded a year-to-date (YTD) gain of 385 per cent as the best performing stock on the Nigerian Stock Exchange (NSE) in 2017. May & Baker gained 385 per cent on June 16, 2017, outperforming all other firms and the NSE all-share index as a whole which is up 25.81 per cent under the period review.
The stock which opened the year at 94 kobo went up by 385 per cent to close the market at N4.56 on June 16th. Also, the drug manufacturer market capitalisation increased by N3.527 billion or 374.4 per cent from N94.2 million on January 3, 2017 to close at N4.469 billion on June 16, 2017.
Capital market analysts attributed the performance to the news recently for a joint venture agreement between the federal government and May and Baker to produce vaccines from 2017 to 2021.
Analysts at APT Securities and Funds Limited, said, “It is also with no doubt that the approval of joint venture agreement between the Federal Government of Nigeria and May and Baker to produce vaccines from year 2017 to year 2021 has contributed immensely to the price appreciation of the stock within two weeks gaining 58.66 per cent and 60.56 per cent week-on-week consecutively.
In April, the Federal Executive Council ratified the 12 year old agreement between it and May and Baker Nigeria for local vaccine production. The managing director/CEO of May and Baker, Mr Nnamdi Okafor said with the action of the Federal Executive Council (FEC), the partners will immediately take steps to reconstitute the board of Biovaccines Nigeria Limited, the company set up for the purpose of vaccine manufacturing in Nigeria through the May and Baker partnership with the federal government.
In 2005, May and Baker entered into a joint venture with the Federal government to take over the facilities of the Federal Vaccine Production Laboratory (FVPL) in Yaba for the purpose of resuming vaccine production which had stopped due to the inability of the FVPL to cope with operational challenges. The project was however delayed due to the non-ratification of the agreement by successive governments.
Chairman of the company, Lt. General Theophilus Danjuma, said the company is already looking forward to a more efficient and impressive performance in 2017. He said some of the key steps being taken to actualise this include process re-engineering and business restructuring.
May&Baker Records 385% Year-To-Date Gain
By Nse Anthony-Uko