MeCure Industries Plc has announced the issuance of a N10 billion 269-day Series 6 Commercial Paper (CP), part of its N40 billion CP programme.
The CP is offered at a discount rate of 18.19%, with an effective annual yield of 21%, making it a highly attractive short-term investment option.
The offer opens on December 9, 2025, and closes on December 12, 2025.
Investors are required to commit a minimum of N5 million, with subsequent investments in multiples of N1,000.
The settlement of the issuance will occur on December 14, 2025, with the CP maturing on September 26, 2026, at which point investors will receive their full returns.
MeCure Industries Plc’s financial performance is good, with strong revenue growth and operating profit improvements.
For the 9 months ending 30 September 2025, MeCure achieved a 98.6% year-on-year revenue growth, reaching N60.01 billion, a significant leap from N30.22 billion in the same period of 2024.
This impressive revenue generation was accompanied by a 159% increase in operating profit, which surged to N13.02 billion from N5.03 billion in 9M 2024.
The company’s EBIT growth is a key indicator here as it highlights its ability to manage debt service obligations while expanding its core operations.
MeCure’s ability to manage debt is evident in its interest coverage ratio of 1.96x, which indicates that the company’s operating profit is nearly twice the amount required to meet its interest obligations.
Despite the rise in debt, particularly through commercial paper issuances, which now accounts for 53% of total debt, MeCure appears well-positioned to service its debt with current operating profit levels.
However, with the Series 6 CP issuance of N10 billion, the company’s interest expenses will rise.
Assuming the current operating profit of N13.02 billion is maintained, the interest coverage ratio will drop to 1.49x following the issuance.
While this reduction in coverage is notable, the ratio still indicates that MeCure can comfortably meet its interest payments, albeit with a narrower margin.
The company stands to benefit from the Presidential Executive Order, which grants duty waivers to select pharmaceutical companies, including MeCure, to encourage local production of healthcare products.
By sourcing raw and packaging materials from China and India, MeCure is set to leverage the policy’s benefits, further improving cost efficiency and operational competitiveness.
By sourcing raw and packaging materials from China and India, MeCure is set to leverage the policy’s benefits, further improving cost efficiency and operational competitiveness.
The installation of its Beta-Lactam plant in October 2023, aimed at manufacturing Amoxicillin-Clavulanic acid (Amoxyclav), a leading antibiotic with a market size exceeding N500 billion, will continue to impact revenue.
Revenue in 9M 2025 increased by 99% outperforming its 3-year revenue compound annual growth rate of 31%
MeCure Industries Plc continues to show impressive growth, both in revenue and operating profit, supported by strategic expansions and partnerships.
The Series 6 CP issuance offers an attractive 21% yield.
Despite the rising debt burden and high debt-to-equity ratio, MeCure appears well-positioned to meet its interest obligations, supported by strong revenue growth, impressive profit growth, and a favorable profit margin trajectory.
These factors combined make the Series 6 CP issuance a worthy investment opportunity in the short term.