Barring unforeseen circumstances, May & Baker Nigeria has announced plans to open for its vaccine production factory in the second quarter of 2023.
The Managing Director and Chief Executive Officer, May & Baker, Mr. Patrick Patrick Ajah, disclosed this in a chat with journalists in Lagos.
According to him, Nigeria cannot continue to depend on western countries for its vaccine “as the coronavirus pandemic has taught us that.”
He said, “Let me also use this opportunity to announce a milestone achievement in our Joint Venture with the Federal Government of Nigeria Biovarcines. On 14th September 2022, the Federal Executive Council (FEC) approved the first part of the MOU of Biovarcines with the FMOH for supply of routine immunization vaccines.
“This is the first/major step towards vaccine production in Nigeria, as this allows Biovaccines to commence the engagement with the chosen Technology transfer partners and subsequently initiate the design and construction of the greenfield project. We are optimistic that the groundbreaking ceremony for the vaccine production facility will happen before Q2 of 2023.
“As we speak we already gotten the first order and that gives us some confidence that is going to happen. We are saying we cannot going to import; we know what happen with the issues we have as countries will take care of themselves first before they think of you. That is why we have singed the contract with companies that is going to support us, where we are now there should be no hindrance because May &Baker is paying to the companies that are producing the vaccines.We just needed an agreement with government that they are going to buy it once we produced it and we are hopefully that is going to happen this time around.”
However, commenting on the profit after tax (PBT), he said it was severely impacted by the significant increase in cost of goods and other operating costs.
He maintained that revenue was growing at 27 percent; cost of goods was growing at 47 percent on average and the cost of paracetamol API has doubled since last year.
He said, ”We were able to mitigate some of these costs with some marginal price increases, operational efficiencies driven by increasing volumes and better production planning and of course the reduction in admin expenses.