4 Pharmaceutical Firms Suffer N8bn Forex Loss .

Four pharmaceutical firms listed on the Nigerian Stock Exchange in 2023 following the weakening of the naira resulted in a combined foreign exchange loss of N8.31billion.

The 2023 financial statements of GlaxoSmithKline Consumer Nigeria, Neimeth International Pharmaceuticals, Fidson Healthcare and May and Baker Nigeria filed on The Nigerian Exchange said, GlaxoSmithKline Consumer Nigeria, which has decided to end manufacturing operations in the country, after it had the worst forex loss among the pharmaceutical companies in 2023, losing N4.52bn instead of the N935,000 loss it recorded in 2022.

GSK said, in August last year that it would stop its 51-year operations in the country and transition to a third-party direct distribution model for its pharmaceutical products.

The Chief Executive Officer of High Cap Securities, David Adorin, said, the sudden transition from a semi-fixed-exchange rate to the floating of the naira caused the forex loss the pharmaceutical firms suffered in 2023.

The naira suffered significant depreciation last year, following the decision of the Central Bank of Nigeria to harmonize the different segments of the forex market on June 14, while, the local currency lost 92.6 per cent of its value between June 14 and December 31, 2023, closing the year at N907.11 per dollar.