Clinoscope Limited has acquired 40 million shares of Neimeth International Pharmaceuticals Plc for N312 million, according to a corporate disclosure filed with the Nigerian Exchange (NGX) on Monday. The transaction, executed at an average price of N7.80 per share, increases Clinoscope's total shareholding in the pharmaceutical firm to 7.64%.
Details of the Acquisition
The purchase was made on August 7, 2026, and was disclosed in a filing signed by the company's secretary, Oluwaseun Aina. The acquisition follows a period of significant sell-off in Neimeth's shares during 2025, which saw the stock price decline sharply.
According to the filing, Clinoscope now holds a total of 35,815,000 shares, representing 7.64% of Neimeth's issued share capital. This makes Clinoscope one of the largest shareholders in the company.
Context: 2025 Sell-Off and Market Impact
Neimeth's shares experienced a notable decline in 2025, with the stock price falling from a high of N12.50 to as low as N5.00 by the end of the year. The sell-off was attributed to profit-taking after a strong rally in 2024, as well as concerns over the company's earnings performance.
The acquisition by Clinoscope is seen as a strategic move to increase its stake at a lower valuation, betting on a recovery in the pharmaceutical sector. Industry analysts note that Neimeth has been focusing on expanding its product portfolio and improving distribution networks.
Regulatory and Compliance Aspects
The transaction was conducted in compliance with the NGX's rules on insider trading and substantial shareholding disclosure. Clinoscope, a private investment firm, has been increasing its holdings in Neimeth since early 2026, acquiring shares in multiple tranches.
In a statement, a representative of Clinoscope said, "We are confident in Neimeth's long-term potential and believe the current share price does not reflect its intrinsic value. This acquisition underscores our commitment to supporting the company's growth."
Neimeth's Financial Performance
Neimeth International Pharmaceuticals reported a revenue of N4.2 billion for the fiscal year 2025, a 15% increase from the previous year. However, net profit declined by 22% due to rising input costs and foreign exchange losses. The company has implemented cost-cutting measures and is focusing on high-margin products.
Following the acquisition announcement, Neimeth's shares gained 3% on Tuesday, closing at N8.00, indicating positive market sentiment. Analysts expect further institutional interest as the company navigates its turnaround strategy.
