For years, investing in Nigerian pharmaceutical stocks had been considered a defensive play at best, with investors tucking money into firms for modest dividends and relative safety during economic downturns. 2025 completely flipped this narrative.
How Pharmaceutical Stocks Fared at the NGX in 2025
The Nigerian stock market delivered its strongest performance in eighteen years during 2025, with the all-share index yielding an impressive 51.2%. This remarkable achievement marked the best outing since 2007, when equities returned 74.7%. The market capitalisation of quoted stocks on the Nigerian Exchange soared to ₦99.4 trillion by year-end, up from ₦62.8 trillion the previous year.
The pharmaceutical sector was an unexpected star performer. It transformation was driven by radical shifts in industry policy and the departure of global giants. For instance, in 2024, multinationals such as GlaxoSmithKline and Sanofi in 2024 both exited the market. This created a multi-billion-naira supply gap for essential drugs, including antibiotics, painkillers and asthma inhalers. A presidential executive order that zero-rated tariffs on Active Pharmaceutical Ingredients also helped reduce production costs. This handed local players the keys to high-margin growth.
Data also showed that at least four drugmakers’ stocks returned an average of 180% to investors, outperforming the NGX All-Share Index and tripling the wealth of those who placed their bets early.
Best Performing Pharmaceutical Stocks of 2025
1. MeCure Industries – 369%
MeCure was the undisputed champion of the pharmaceutical sector. The drugmaker saw its share price surge by 369% year-to-date despite starting the year at ₦13.90 and executing a rally that closed at ₦65.20 on 30 December 2025. By scaling its production of beta-lactams and specialised drugs, MeCure’s revenue doubled from ₦30.2 billion in 2024 to ₦60 billion for the nine months ended September 2025, transforming it from a niche player into a market heavyweight. This spectacular appreciation meant that an investor who staked ₦2.5 million in MeCure at the start of the year held a portfolio valued at roughly ₦11.7 million by year-end, comfortably crossing the millionaire threshold through capital appreciation alone.
2. Fidson Healthcare – 210%
Fidson Healthcare proved why it has long been considered the blue-chip of the sector, delivering a 210% year-to-date return. The stock closed the final trading day of the year at ₦48, up from a January opening of ₦15.50. Fidson rewarded shareholders who ignored the noise of inflation to bet on domestic manufacturing capacity.
The true windfall for many came from the synergy between share price growth and strategic capital raises, such as Fidson’s ₦21 billion Rights Issue, which allowed existing shareholders to deepen their positions at a discount while the market price soared. With first-half profits soaring by nearly 300 per cent, Fidson’s growth story was a masterclass in aggressive balance sheet management and operational excellence.
3. Neimeth International – 179%
Neimeth was the sleeping giant of the pharmaceutical sector, and in 2025, that giant woke up. The stock ended the year at ₦6.40, representing a 179% rise from its starting point of ₦2.29. The rally was anchored by the operationalisation of the firm’s new Amawbia plant in Anambra State. This plant not only increased production capacity but also allowed Neimeth to capture a significant portion of the antimalarial vacuum left by departing multinationals. An investor who bought 500,000 shares of Neimeth in January for roughly ₦1.1 million would have ended the year with a portfolio worth over ₦3.2 million.
4. May & Baker – 102%
May & Baker provided the sector’s most reliable wealth compounder story. Closing the year at ₦19, the stock yielded a 102% return. While it ranked 50th on the NGX, its contribution to millionaire-making was unique because of its consistency. The Lagos-based drugmaker utilised 2025 to launch seven new products, penetrating new therapeutic areas such as cardiometabolic care. For investors, the combination of a doubling share price and steady dividend yields made May & Baker the safety net that actually outperformed the broader market.
Even Morison Industries which ranked 95th with a 28.4 per cent gain, contributed to the sector’s overall narrative of recovery. Closing at ₦5.15, Morison proved that even the laggards of the pharmaceutical basket could provide better returns than traditional fixed-income accounts in a high-inflation year where consumer inflation stood at 14.5 per cent.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with licensed financial advisors before making investment decisions. Stock prices are subject to market volatility and various risks, including regulatory changes, economic conditions, and company-specific factors. The pharmaceutical sector, while showing strong performance in 2025, may experience different market dynamics in subsequent years. SimplVest assumes no responsibility for investment decisions made based on information contained in this or any of our articles.
