MIRA
INFORM REPORT
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Report Date : |
19th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
CHEMAGIS LTD |
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Registered Office : |
P.O Box 9091 (61090) 3 Hashlosha Street Tel Aviv 67060 Israel |
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Country : |
Israel |
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Financials (as on) : |
31/12/2004 |
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Date of Incorporation : |
21.8.1986 |
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Legal Form : |
Private limited company |
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Line of Business : |
Developers, manufacturers, exporters and
marketers of Active Pharmaceutical Ingredient (API), for the generic
pharmaceutical industry. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Name & address
CHEMAGIS LTD.
Telephone 972 3 636 92 22
Fax 972 3 636 92 27
P.O Box 9091 (61090)
3 Hashlosha Street
TEL AVIV 67060 ISRAEL
HISTORY
A private limited company, incorporated as per file No. 51-113965-1 on 21.8.1986.
SHARE CAPITAL
Authorized share capital NIS 55,000,000.00, divided into -
55,000,000 ordinary shares of NIS 1.00 each, of which shares amounting to NIS 42,961,680.00 were issued.
SHAREHOLDERS
Subject is fully owned by PERRIGO ISRAEL PHARMACEUTICALS LTD. (formerly AGIS INDUSTRIES (1983) LTD.), a fully owned subsidiary of PERRIGO COMPANY of the USA, a public limited liability company, whose shares are traded on the NASDAQ and the Tel Aviv Stock Exchanges.
DIRECTORS
1.
Moshe (Modi) Arkin,
2.
Rafael Label,
3.
David Gibbons.
GENERAL MANAGER
Boaz Laor.
BUSINESS
Developers, manufacturers, exporters and marketers of Active Pharmaceutical Ingredient (API), for the generic pharmaceutical industry.
Most of subject’s sales are for export (40% of the PERRIGO ISRAEL Group’s sales are exports).
Operating from AGIS headquarters in 29, Lehi Street, Bnei Brak and from:
1. Offices and laboratories (rented), on an area of 700 sq. metres in 3 Hashlosha Street, Tel Aviv,
2. A plant on an area of 17,000 sq. metres in Ramat Hovav Industrial Zone, south of Beer Sheva.
The Group is also operating from plants and laboratories in Yeruham, Germany and the USA.
Having 2,000 employees serving the PERRIGO ISRAEL Group (1,480 in Israel).
MEANS
Financial data is included in the consolidated statements of parent company, PERRIGO ISRAEL PHARMACEUTICALS LTD., whose B/S (last obtainable) showed:
NIS (thousands)
31.12.2003 31.12.2004
ASSETS
Current Assets
Cash and cash equivalents
305,533 160,609
Short Term Investments 14,436 98,133
Customers 367,529 380,718
Other debtors 103,354 134,961
Stock _ 452,346 492,014
1,243,198 1,266,435
Long term investments 79,173 77,607
Fixed assets
486,477 522,416
Other assets and
deferred expenses 97,817 _86,899
1,906,665 1,953,357
======== ========
LIABILITIES
Current liabilities 478,190 539,327
Long term liabilities 320,355 271,995
Equity 1,108,120 1,142,035
1,906,665 1,953,357
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Subject is an “Approved Enterprise” and as such enjoys tax benefits and state incentives.
In June 1999 the Investment Centre Administration approved subject’s plan to invest US$ 6.87 million for the expansion of subject’s plant in Ramat Hovav, and a further US$ 8 million investment plant was approved in April 2001.
In July 2003, the Investment Center Administration approved the expansion of subject’s plant, for a sum of US$ 8,000,000.
There is 1 charge for an unlimited amount
registered on the company's assets, in favor of the State of Israel.
ANNUAL SALES
Subject’s 1997 sales were NIS 69,556,000.
Subject’s 1998 sales were NIS 78,572,000, making a net profit of NIS 8,944,000.
Subject’s 1999 sales were NIS 115,000,000, making a net profit of NIS 13,296,000.
Subject’s 2000 sales were NIS 125,303,000, making a net profit of NIS 25,844,000.
Subject’s 2001 sales were NIS 140,872,000, making a net profit of NIS 16,117,000.
Subject ended 2002 with a consolidated net profit of NIS 86,361,000.
Subject ended 2003 with a consolidated net profit of NIS 103,464,000.
Subject ended 2004 with a consolidated net profit of NIS 109,158,000.
PERRIGO ISRAEL PHARMACEUTICALS LTD. Consolidated Statement of Income
NIS
(thousands)
Year
ended 31.12
2002 2003 2004
Sales 1,385,382 1,691,554 1,821,241
Gross profit 501,513 637,805 713,868
Operating income 80,968 184,971 192,979
Pre-tax income 71,577 167,128 108,367
Net income 61,837 136,916 90,436
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Later sales
figures not forthcoming.
OTHER COMPANIES
PERRIGO ISRAEL PHARMACEUTICALS LTD., Manufacturers, importers, marketers and exporters of pharmaceuticals (also generic), cosmetics, toiletries, detergents and cleaning products, raw materials to the pharmaceutical industry, etc. Also Operates as manufacturers of pharmaceuticals as sub-contractors for other companies and as Importers and marketers of medical equipment.
PERRIGO ISRAEL also controls (all fully owned subsidiaries, unless otherwise mentioned):
CARELINE (PHARMAGIS) LTD., developers and manufacturers of cosmetics and perfumes (some of subject’s products are based on Dead Sea minerals and are distributed under the trade name of “D.S.D.”).
NECA CHEMICALS (1952) LTD., manufacturers of chemicals, detergents and toiletries.
AGIS COMMERCIAL AGENCIES (1989) LTD.
DAN – AGIS LTD., 50%, distributors of the CARELINE-NECA group products and other products.
AGIS DISTRIBUTION AND MARKETING (1989) LTD.,
AGIS INVESTMENTS (2000) LTD.,
WESTECH LTD.,
DUBCHEM LTD., 70%,
NECA MARKETING (1983) LTD.,
CLAY PARK LABS INC., New York,
ASSETS & INVESTMENTS (2003) LTD.,
CHEMAGIS USA INC.,
CHEMAGIS GERMANY GmbH.
PHARMA CLAL LTD.
CHEMAGIS (NETHERLANDS) B.V
INFRASERV GmbH & CO WIESBADEN KG, 7%,
PERRIGO COMPANY, a global pharmaceuticals company, shares are traded on the NASDAQ and the Tel Aviv stock exchanges, market value US$ 1.577 billion.
BANKERS
Bank Leumi LeIsrael B.M., Lev Dizengoff Branch (No. 806), Tel Aviv,
Bank Hapoalim Ltd., Herzliya.
CHARACTER AND REPUTATION
Nothing unfavourable learned.
Subject’s parent company is the second largest pharmaceutical company in Israel after “TEVA”.
PERRIGO ISRAEL group is the largest local cosmetic manufacturer and second largest supplier of pharmaceuticals to the local market (after TEVA), also second largest manufacturer of generic raw materials for the international pharmaceutical market (also after TEVA).
In June 2002, it was reported that AGIS is negotiating a deal to acquire a pharmaceutical plant in India, in order to increase subject’s production capacity.
In October 2002, subject acquired from AVENTIS, an API plant in Germany, for a sum of EUR 5 million.
AVENTIS pledged to purchase products from the plant for a sum of EUR 15 million per year.
Subject also acquired 7% of the plant’s assets, for a sum of EUR 2.9 million.
In November 2003, AGIS completed a NIS 100 million capital raise by issuing bonds to institutional investors.
In November 2004, AGIS signed a merger agreement with PERRIGO of the USA, according to which PERRIGO will acquire all of AGIS's shares, in return of US$ 450 million in cash and 23% of PERRIGO shares (the deal reflects a 900 million company value to AGIS). The deal was finalized on 17.3.2005, and following that AGIS shares were de-listed from the Tel Aviv stock exchange.
The local pharmaceutical industry employs 5,700 employees directly and an additional 20,000 indirectly.
The manufacturers in this field invest US$ 175 million per year, of which
US$ 125 million are for R&D.
According to the Industrials Association sales of the pharmaceutical sector reached US$ 1.83 billion in 2003, a 19% increase from 2002 (excluding sales of Israeli companies whose manufacturing sites are abroad, which amounted to US$ 1.5 billion in 2003).
Out of the pharmaceutical products sold, export increased in 2003 by 26%, reaching US$ 1.4 million.
Import of pharmaceutical products in 2003 reached US$ 729 million, a 10% increase from 2002. A total of 73% of medicines in the local market are imports, compared to a global average of 40%.
The pharmaceutical market is considered
stable and payment morality is good.
SUMMARY
Good for trade engagements.
NOTE
29 Lechi street, Bnei Brak, is the address
of the headquarters of the PERRIGO ISRAEL group.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |