MIRA
INFORM REPORT
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Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
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Name : |
DRAXIS SPECIALITY
PHARMACEUTICALS INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
01/01/2005 |
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Legal Form : |
Federally
Chartered Corp. - Private |
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Line of Business : |
Specialty
pharmaceutical manufacturer. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
IDENTIFICATION &
EXECUTIVE SUMMARY
Company Name: DRAXIS
SPECIALITY PHARMACEUTICALS INC.
Trade Name(s): DRAXIS
PHARMA
DRAXIMAGE
Address:
City:
State/Province:
Zip Code: H9H
4J4
Country:
Telephone: 514
694-8220
Facsimile: 514
694-5968
As of: 31/12/2006
Sales /
Revenue: 86,300,900
Net Income:
Total Equity:
Number of Employees:
404
Legal Form: Federally
Chartered Corp. - Private
Website: www.draxis.com
Business Activity: The Company is a specialty
pharmaceutical manufacturer.
NOTE TO CLIENT
Person
Contacted: Mr. Paul Mea, General
Accountant. He verified and updated the
information presented to him.
Please note that the
Subject is the primary operating subsidiary of the Draxis Health Inc. All other affiliates are pharmaceutical
licensing companies that draw revenues from licensing pharmaceutical products
to other companies. They have no other
operations.
LEGAL
Legal Form: Federally
Chartered Corp. - Private
Since (D/M/Y): 01/01/2005
State/Province of
Incorporation:
Status: ACTIVE
Previous Legal Form:
Company is NOT
required to publish an annual financial report.
The Company
federally chartered in
Corporation #4279671
BN #871923579RC0002
Corporation Name(s):
DRAXIS SPECIALTY PHARMACEUTICALS INC./
PRODUITS
PHARMACEUTIQUES SPCIALISS DRAXIS INC.
Mailing Address:
[Latest address on file]
Care of: General
Counsel and Secretary
Street:
City:
Province:
Postal Code: H9H4J4
Country:
Registered Office
Address: [Latest address on file]
Care of: General
Counsel and Secretary
Street:
City:
Province:
Postal Code: H9H4J4
Country:
Reg. Off. Eff:
2006/06/14
Status: Active
Incorporation Date:
2005/01/01
----------------------------------------------------------------------
The Company
provincially qualified in
Incorporation
Number: 1162690201
Legal Name: PRODUITS
PHARMACEUTIQUES SPCIALISS DRAXIS INC.
Incorporation Date:
1/1/2005
Last Annual Report:
10/26/2006
Location:
Address: 16751,
AUTOROUTE TRANS-CANADA
Registered Agent:
DRAXIS HEALTH INC.
R/A Address: 16751,
TRANSCANADIENNE
Managers/Key
Personnel
Mr. Martin
Barkin President
Mr. Alida Gualtieri Secretary
Mr. Paul Mea General Accountant
All senior directors
are the same as its parent, Draxis Health Inc.
AFFILIATED ENTITIES
The following are
affiliates of the Subject:
4271513 Canada Inc.
DAHI Animal Health (
DAHI Animal Health (
Depranyl Animal
Health Inc.
DAHI LLC
DAHI (
DAHI (
Draximage LLC
Parent Companies
Parent Company: Draxis Health Inc.
PQ
The following are
selected stock price and financial statement information for the parent
company, DRAXIS HEALTH INC., which trades on the Nasdaq stock exchange under
the symbol DRAX.
As of 8/1/2007 in US
Dollars
Stock Price: 4.96
52 Week High: 6.64
52 Week Low: 3.96
Shares
Outstanding: 42,020,000
Fiscal Year End:
12/31/2006 in Thousands of US Dollars:
Total Assets: 105,960
Total
Liabilities: 13,550
Total Equity: 92,420
Net Sales: 89,970
Net Income: 11,550
The Company has one
subsidiary:
Draximage (
BANKS
National Bank of
130,
Telephone: (416)
864-7757
Facsimile: (416)
864-7888
Account Number:
Account Manager:
This bank only
provides credit information to other banks.
PAYMENT HISTORY
------------------------------------------------------------------------------
Supplier's Name/Industry Terms Amount/Pay Habits/Comments
Rptd
Open Credit Credit
High Total Current
Past Due/Pay Period
Date
Date Limit Limit Dt. Credit Owing
$ 1st 2nd
3rd
------------------------------------------------------------------------------
Transportation Serv:
*Jul 0 20,472 3,202
3,202 0 0
0
Trucking:
*Jul 0 6,115 6,115
4,313 1,802 0
0
Mfr-Pump &
Pumping E:
*Jul 0 3,463 3,463
0 3,463 0
0
Transportation Serv:
*Jul 0 287 287
287 0 0
0
Whlsl-Ind Mach Sppls: Merged accts
*Jul 0 2,466 2,466
2,466 0 0
0
Mfr-Plastic:
*Jul 0 46,463 46,463
46,463 0 0
0
Whlsl-Electronic Pts: Merged accts
*Jul 0 51,976 51,976
31,116 12,374 8,486
0
Transportation Serv: Merged accts
*Jul 0 27,556 27,556
6,540 21,016 0
0
Transportation Serv: Merged accts
*Jul 0 7,480 7,480
6,964 516 0
0
Mfr-Inorganic Chemcl:
*Jul 0 41,006 41,006
36,579 4,427 0
0
Mfr - Chemical Produ:
*Jul 0 11,930 11,930
2,059 9,871 0
0
Whlsl-Durable Goods:
*Jul 0 2,694 247
5 4
34 204
Mfr-Inorganic Chemcl:
*Jul 0 12,700 12,700
0 12,700 0
0
Wholesale-Elec Appls:
*Jul 0 50,000 1,390
1,069 321 0
0
Retail-Establishment:
*Jul 0 50,000 17,798
17,798 0 0
0
Whlsl-Professnl Equp:
*Jul 0 222K 222K
151K 67,602 2,625
927
Mfr-Engine:
*Jun 0 28,816 1,166
347 819
0 0
Printer-Commercial:
*Jun 0 33,640 33,640
25,975 7,665 0
0
Whlsl-Plumbing/Heatg:
*Jun 0 500 500
500 0 0
0
Whlsl-Constr/Mine Eq:
*May 0 313 313
189 124 0
0
Mfr-Measuring Equip:
*May 0 1,452 1,452
1,452 0 0
0
Mfr-Plastic:
*May 0 666 666
0 666 0
0
Mfr-Paper Box:
*May 0 526 526
526 0 0
0
------- -------
------- ------- ------- -------
P.I. =
11 90 Days 623K
495K 339K 143K
11,145 1,131
Reported ------- ------- ------- ------- -------
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Transportation Serv:
*Apr 0 29 29
0 0 0
29
Wholesale-Elec Equip:
*Apr 0 785 785
785 0 0
0
Manufacturing Indust:
*Apr 0 1,413 1,413
0 1,413 0
0
Services-Health: Merged accts
*Mar 0 1,052 1,052
1,052 0 0
0
Whlsl-Electronic Pts:
*Mar 0 7,500 219
0 0 0
219
Services-Health:
*Feb 0 1,046 1,046
0 1,046 0
0
Mfr-Audio/TV Equip:
*Jan 0 1,000
28 28 0
0 0
Services-Employment:
*Jan 0 1,085 1,085
0 0 1,085
0
Arrg Transp of Freig:
*Dec 0 24,402 24,402
17,003 0 7,399
0
Manufacturing Indust:
*Oct 0 533 533
533 0 0
0
Transportation Serv:
*Oct 0 925 925
925 0 0
0
KLOCKNER PENTAPLAST: 905-433-9232
*Sep
0 15,000 4,610
4,610 0 0
0
------- -------
------- ------- ------- -------
P.I. =
12 Total 678K
531K 364K 145K
19,629 1,379
Reported ------- ------- ------- ------- -------
-------
PAYMENT TRENDS=
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Payment C.I.
Number of Total Current Overdue
Quarters
Index Score Suppliers
Owing $ 1st 2nd
3rd
------------------------------------------------------------------------------
2 Qtr/2007
8 4 24
431,190 359,245 45,335
26,540 70
1 Qtr/2007
10 8 20
209,583 151,502 53,145
4,717 219
4 Qtr/2006
15 4 19
303,920 179,413 114,804
9,662 41
3 Qtr/2006
6 4 20
249,883 207,890 40,641
716 636
2 Qtr/2006
10 8 19
254,063 196,043 37,107
20,913 0
1 Qtr/2006
14 4 22
241,453 140,322 101,113
18 0
4 Qtr/2005
9 4 21
174,546 125,140 49,300
106 0
3 Qtr/2005
16 14 16
245,513 129,891 115,539
0 83
2 Qtr/2005
9 17 15
179,969 142,556 28,667
8,708 38
FINANCIAL INFORMATION
FINANCIAL FIGURES
Year-End
(D/M/Y): 31/12/2006 31/12/2006 31/12/2006
Consolidated
Sales
/ Revenues 86,300,900 - -
Mr. Mea declined to
provide financial statement information, only stated that the Subject is
consolidated within the parent company, Draxis Health Inc.
According to the
Draxis Health Inc. 2006 Annual Report, the Subject represents 97% of its total
sales which is US$86,300,900.
CURRENT OPERATIONS
NAICS Code: 32541
Pharmaceutical and Medicine Manufacturing
Number of Employees:
404
Business Activity:
The Company is a specialty
pharmaceutical manufacturer.
The Subject has
three product categories: sterile products, non-sterile products and
radiopharmaceuticals.
Sterile products
include liquid and freeze-dried (lyophilized) injectables and sterile
ointments. Non-sterile products are produced as solid oral, liquid and
semi-solid dosage forms. Radiopharmaceuticals are used for both therapeutic and
diagnostic molecular imaging applications.
The heading address
is the headquarters for the Subject. The
facility consists of 247,000 square feet of owned manufacturing, office, and
warehouse space.
The Company's
operations are split between two divisions, DRAXIS PHARMA and DRAXIMAGE.
TRADE REFERENCES
The following
companies were faxed for credit information.
If we receive responses, we will amend the report accordingly.
Tel: 514-327-2011
Fax: 514-327-7810
-
GAUTHIER NON-FERROUS
PRODUCTS
Tel: 514-645-2375
Fax: 514-645-7574
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SMURFIT MBI
Ville St. Laurent
Tel: 514-744-6461
Fax: 514 744-3029
PUBLIC RECORD
A search of public
revealed no derogatory information, bankruptcy petitions or Uniform Commercial
Codes.
GENERAL COMMENTS
The Subject, founded
in 2005, is engaged as a specialty pharmaceuticals manufacturer. The payment record is generally satisfactory
and the operating history is clear. No
derogatory information or bankruptcy petitions were reported or noted. The Company is responsible for normal
business transactions.
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)