Nigeria set for local vaccine production

Investors in May & Baker Nigeria Plc received a major boost on Wednesday with the inauguration of the board of the group’s domestic vaccine-producing company– Biovaccines Nigeria Limited.

May & Baker Nigeria’s share price appreciated by 4.95 per cent to close at N2.97 per share, the highest percentage gain at the Nigerian Stock Exchange (NSE). Against the downtrend at the stock market, the rally by May & Baker Nigeria came as the Federal Government inaugurated the board of Biovaccines Nigeria Limited.

May & Baker Nigeria owns the majority shareholding of 51 per cent in Biovaccines Nigeria Limited while the Federal Government holds the remaining 41 per cent.

The board of Biovaccines Nigeria Limited was inaugurated on Wednesday by Minister of Health, Prof. Isaac Adewole. Members of the board included Prof Oyewole Tomori, a renowned virologist and former vice chancellor of the Redeemers University as chairman, Dr. Faisal Shuaib, Executive Director and Chief Executive Officer, National Primary Health Care Development Agency, Pharm. M.  Lawal, Director, Food & Drugs, Federal Ministry of Health, Pharm NnamdiOkafor,  Managing Director, May & Baker Nigeria Plc, Dr. EdugieAbebe, a former Permanent Secretary and Director of May & Baker Nigeria and Mr. AyodejiAboderin, Director of Finance , May & Baker Nigeria. The Managing Director of Biovaccines Nigeria Limited, who will be announced soon, is also expected to join the board.

Speaking at the inauguration ceremony, Managing Director, May & Baker Nigeria Plc, Pharm Nnamdi Okafor, said that the board of Biovaccines Nigeria Limited will immediately begin business to prepare the ground for the eventual production of vaccines in Nigeria.

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“The business plan of Biovaccines is ready. One of the first tasks of the board just inaugurated will be to approve the plan for immediate kick off of operations,” Okafor said.

May & Baker Nigeria had in 2005 entered into a joint venture with the Federal government to take over the facilities of the Federal Vaccine Production Laboratory (FVPL) in Yaba for the purpose of resuming vaccine production which had stopped due to the inability of the FVPL to cope with operational challenges. The project was however delayed due to the non ratification of the agreement by successive governments.

May & Baker Nigeria holds the majority equity stake of 51 per cent while the government holds 49 per cent equity stake in Biovaccines Nigeria Limited, the company set up for the purpose of May and Baker Nigeria-government partnership.

The Federal Executive Council had at its sitting on May 31, 2017 ratified a joint venture agreement (JVA) between the Federal Government and May & Baker for the formation of a private company, Biovaccines Nigeria Limited to serve as a special purpose vehicle for the production of vaccines in Nigeria.

According to Okafor, between May 31, 2017 when the Federal Executive Council (FEC) ratified the JVA and now so much has happened, albeit below the lines.

“We have successfully engaged all stakeholder groups to align their plans and activities to the task of providing Nigeria a sustainable programme of immunization through local production of vaccines. I can say that Nigerians are now clearly joining forces on this healthcare initiative and the way to the future is very clear and bright. We have equally engaged international organisations such as GAVI, MSF, PATH, Melinda and Bill Gate Foundation among others for collaboration,” Okafor said.

He assured that Biovaccines Nigeria Limited will strive to commence local production as soon as practicable noting that the strategy is to shorten the gestation period to achieve the shortest possible time line for production.

He pointed out that ideally, a Greenfield production will require five to eight years for the first batch of products as vaccine production is a high-tech, complex and painstaking process, adding that Nigeria is determined to achieve international standards of production.

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