Neimeth International Pharmaceuticals Plc has disclosed that its major shareholder, Clinoscope Services Limited, has divested a significant portion of its holdings following the company’s sharp rally on the Nigerian Exchange. The transaction, valued at approximately N3.12 billion, involved the sale of more than half a billion ordinary shares and comes after Neimeth delivered one of the strongest year-to-date performances on the local bourse in 2025.
According to a notification published on the Nigerian Exchange Limited, Clinoscope Services Limited sold a total of 515,300,515 ordinary shares of Neimeth at an average price of N6.05 per share. The disposal followed months of heightened investor interest in the pharmaceutical stock, which had surged on the back of improving fundamentals and renewed optimism around the company’s turnaround prospects.
The filing shows that the transaction was executed in two tranches. In the first tranche, completed on September 17, 2025, Clinoscope sold 15,300,515 shares at N6.10 per unit. This was followed by a much larger second tranche on December 19, 2025, during which 500,000,000 shares were sold at N6.00 per unit. Together, the two transactions amounted to proceeds of roughly N3.117 billion.
Prior to the sale, Clinoscope Services Limited was one of Neimeth’s most influential shareholders. The company’s audited full-year 2024 financial statements, released in May 2025, showed that Clinoscope held 1,068,276,375 shares, representing a 25% equity stake in the pharmaceutical firm. Following the latest divestment, Clinoscope’s shareholding has been reduced to 552,975,860 shares, translating to a revised ownership stake of about 12.94%.
The timing of the sale has drawn market attention, coming after a remarkable rally in Neimeth’s share price earlier in the year. The stock delivered a year-to-date return of approximately 162% in 2025, placing it among the best-performing healthcare equities on the NGX. Much of this rally was driven by improved earnings momentum, corporate actions aimed at strengthening the balance sheet, and speculative interest as investors positioned for a longer-term recovery.
However, the second half of the year has been marked by some price consolidation. From the beginning of July 2025 to the close of trading on December 23, Neimeth’s shares declined by about 8.12%, slipping from N7.20 to around N6.00. Despite this pullback, the stock remains firmly in positive territory for the year, reflecting the scale of gains recorded in the first half.
Some market participants interpret Clinoscope’s partial exit as profit-taking rather than a vote of no confidence in the company’s prospects. With the share price still up significantly year-to-date, the N6.00 level is being viewed by some investors as a potential accumulation zone, especially if earnings momentum is sustained and broader market sentiment remains supportive. Optimistic traders are already eyeing a possible move above the N8.00 mark over the medium term, although this will depend on execution and market conditions.
On the fundamentals side, Neimeth’s recent financial performance has provided a stronger basis for investor confidence. For the nine-month period ended 2025, the company posted revenue of N5.0 billion, up from N3.09 billion in the corresponding period of the previous year. Pharmaceutical sales accounted for the bulk of this figure at N4.8 billion, while animal health products contributed N166.2 million. Notably, all revenue was generated within Nigeria, underscoring the firm’s domestic market focus.
Rising input costs pushed the cost of sales up to N2.5 billion, but this was more than offset by revenue growth, allowing gross profit to expand to N2.4 billion from N1.4 billion previously. Other income of N312.3 million further boosted performance, lifting operating profit to N1.6 billion—more than double the prior-year figure—despite higher operating expenses. After finance costs of N1.3 billion, profit before tax stood at N339.7 million.
The balance sheet also showed signs of improvement, with total assets increasing to N13.3 billion and shareholders’ equity rising to N1.9 billion. At its Annual General Meeting held on June 23, 2025, shareholders approved a resolution authorising directors to raise up to N20 billion through share issuance, a move aimed at strengthening the company’s capital base and supporting future expansion.
That approval helped fuel investor enthusiasm earlier in the year, driving Neimeth’s shares up by over 110% in its strongest monthly performance and pushing first-half gains to more than 185%, with the stock peaking at N6.55. However, bearish momentum emerged from July, leading to the recent pullback.
Overall, Clinoscope’s share sale appears to mark a turning point after Neimeth’s explosive rally, highlighting the delicate balance between profit-taking and longer-term confidence as investors reassess valuations following an extraordinary run.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
