Nigerian pharmaceutical mogul and Fidson Healthcare founder Fidelis Ayebae, has seen the market value of his stake in the company fall by about $20 million in six days, as selling pressure hit the Lagos-based drug manufacturer on the Nigerian Exchange (NGX).

The decline reflects a broader pullback in mid-cap healthcare stocks, with investors taking profits after recent gains and adjusting positions following a major capital raise by the company.

According to market data tracked by Shore.Africa, Ayebae holds a 31.66% stake in Fidson Healthcare, equal to 759,643,749 shares in the company, making him one of the largest individual shareholders in Nigeria’s listed pharmaceutical sector.

From June 5 to the latest trading period, Fidson’s share price dropped from N136.50 ($0.10) to N101.20 ($0.07). That decline reduced the value of Ayebae’s holding from N103.7 billion ($76.15 million) to N76.87 billion ($56.46 million), a fall of N26.81 billion ($19.7 million). As a result, the company’s market capitalization fell to N304 billion ($223.38 million).

Market participants point to increased supply following the company’s recent N21 billion ($15.42 million) rights issue, alongside broader selling across defensive stocks, as key factors behind the price movement.

Fidson rights issue oversubscribed 117%

Fidson Healthcare’s recent rights issue drew strong investor participation, closing 117% subscribed. While shareholders received 85% allocation on excess applications, the company fully allotted the rights issue, reflecting steady demand for the stock despite short-term price pressure.

The capital raise, concluded after a December 2025 launch, was designed to strengthen the company’s balance sheet, reduce debt exposure, and fund expansion plans across its operations.

The increase in share supply following the issuance, however, has contributed to near-term price adjustments as the market absorbs new equity.

Revenue growth continues despite market decline

Fidson Healthcare reported improved financial performance in the first quarter of 2026, despite the recent weakness in its share price.

For the three months ended March 31, 2026, revenue rose to N42.60 billion ($31.3 million), up 21.7% from N35.02 billion ($25.73 million) in the same period a year earlier.

Profit for the period climbed to N4.56 billion ($3.35 million), compared with N3.25 billion ($2.39 million) in Q1 2025, representing a 40.3% increase. Earnings per share rose to N1.90 ($0.0014), from N1.42 ($0.001) in the prior-year period.

Total assets also increased to N93.72 billion ($68.86 million) as of March 31, 2026, from N80.29 billion ($59 million) at the end of December 2025. The growth was largely driven by higher trade and other receivables.

Fidson long-term expansion and industry position

Founded in March 1995, Fidson Healthcare has grown into one of Nigeria’s leading pharmaceutical manufacturers, with a presence across West Africa’s healthcare supply chain.

In 2005, the company became the first in the region to produce antiretroviral drugs locally, marking a notable shift in domestic pharmaceutical capacity.

More recently, Fidson has focused on expanding production capability. In September 2024, the company announced a $100 million investment in a new manufacturing facility at the Lekki Free Trade Zone, aimed at increasing local drug production and reducing reliance on imports.

Ayebae’s role and business background

Fidelis Akhagboso Ayebae, founder and managing director of Fidson Healthcare Plc, has spent decades building the company from a pharmaceutical distributor into a listed manufacturing business.

Before establishing Fidson, he worked as a project manager at Metalum Limited in the 1980s and later spent seven years in banking at Citibank, where he rose to assistant vice president before leaving in 1991.

He later founded Ayebae Investment Limited in 1992 before launching Fidson in 1995.

Under his leadership, the company expanded its product range and became a local manufacturer of several pharmaceutical categories, including proton pump inhibitors, antiretrovirals, large and small volume parenterals, eye and ear drops, and ampoule injections.

Ayebae has also served on several corporate boards and was chairman of NEM Insurance Plc until December 2023.

Ayebae’s leadership transition

Ayebae stepped down as managing director and chief executive of Fidson Healthcare Plc on August 1, 2025. He was succeeded by Abiola Adebayo, a long-serving executive director who had been with the company for about 30 years.

The transition marked a leadership change after three decades of Ayebae’s direct operational control, while he retains a significant ownership stake in the company.

Despite the recent decline in share value, Ayebae remains one of the leading investors on the NGX through his Fidson stake.