MIRA
INFORM REPORT
|
Report Date : |
01.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
DEXCEL
LTD. |
|
|
|
|
Registered Office : |
P.O. Box 50 Hadera (38100), Southern Industrial Zone
1, Or Akiva 30600 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
9.11.1966 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Developers,
manufacturers, exporters and marketers of pharmaceuticals and generic
prescription drugs and OTC pharmaceutical products. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
DEXCEL LTD.
P.O. Box
50 Hadera (38100)
Southern
Industrial Zone 1
OR AKIVA 30600 ISRAEL
Telephone
972 4 636 40 00
Fax 972 4 636 40 04
HISTORY
A private
limited company incorporated as per file No. 51-047774-8 on the 9.11.1966,
under the name KARIN ADVERTISING LTD., which changed to the present name on
26.10.1989.
SHARE CAPITAL
Authorized
share capital NIS 17,000,000.00, divided into - 8,500,000 ordinary A shares,
8,500,000 ordinary B shares, all of NIS 1.00 each, of which shares amounting to
NIS 14,260,000.00 were issued.
SHAREHOLDERS
1.
DEXXON LTD., owned by Dan Oren,
2.
DISCOTRADE LTD., a subsidiary of a/m, holding 1 single
share only.
DIRECTORS
1.
Dan Oren - Managing Director of the DEXXON Group,
2.
Avi Abramov,
3.
Ms. Lial Carmeli,
4.
Uri Oren,
5.
Ygal Seelenfreund.
BUSINESS
Developers,
manufacturers, exporters and marketers of pharmaceuticals and generic
prescription drugs and OTC pharmaceutical products.
Sales are
to drug wholesalers, retail drug chains, distributors, sick funds and
government agencies.
Operating
from premises owned by DEXXON LTD., on an area of 14,000 sq. meters, in
Southern Industrial Zone 1, Or Akiva.
The Group
also operates from a plant, on an area of 15,000 sq. meters, in 7 Hamarpe
Street, Hahotzvim Mountain, Jerusalem.
Also
operating from branches in Germany, UK and USA.
Having
some 690 employees, serving the whole Group.
MEANS
Consolidated
stock was valued at US$ 5,000,000 (in 1999)
In 1999
Group’s premises were estimated at a value of US$ 12,000,000.
Machinery
and equipment were valued at over US$ 10,000,000 (in 1999).
Subject
is an “Approved Enterprise” and as such enjoys tax benefits and state
incentives.
In
February 2004, the Investment Center Administration approved a US$ 7.4 million investment
plan for the expansion of subject’s plant in Or Akiva, and the expansion of the
Group’s plant in Jerusalem, with investment of US$ 3.3 million.
In April
2003, it was reported that DEXXON intends to raise US$ 60-70 million, according
to a company value of US$ 500 million, form a US Investment Fund. It was
reported that in the future, DEXXON intends to list its shares on the Nasdaq
Stock Exchange.
There are
no charges registered on the company's assets.
ANNUAL SALES
Group’s
consolidated 2000 sales reported to be US$ 50,000,000, 35% for exports,
Group’s
consolidated 2001 sales reported to be US$ 60,000,000,
Group’s
consolidated 2002 sales reported to be US$ 85,000,000, 60% for exports.
Group’s
consolidated 2003 sales reported to be US$ 87,500,000, 65% for exports,
Group’s
consolidated 2004 sales reported to be US$ 96,000,000, 65% for exports.
2005
consolidated sales reported to be at same level as the previous year, as well
as the export rate.
2006
consolidated sales reported to exceed US$ 1,000,000,000, mostly for export.
OTHER COMPANIES
The
DEXXON Group also includes:
DEXXON
LTD., parent company, developers, manufacturers, marketers and exporters of
pharmaceuticals. Heads the Group, which on top of development and
manufacturing, also operate as agents, importers and marketers of
pharmaceuticals, solely representing, among others: BRACCO (Italy), CHINOIN
(Hungary), SCHOLL (UK), KYOWA MAKKO (Japan), LEO PHARMACEUTICALS (Denmark).
The Group
also invests in bio-tech start-ups.
DEXXON Group subsidiaries:
DISCOTRADE
LTD.
DEXCEL
PHARMA LTD. (U.K.).
DEXCEL
PHARMA GMBH (Germany), later 2 are fully owned subsidiaries of subject.
DEXOPAL
LTD.
GADLON
LTD.
DEXCEL PHARMA TECHNOLGIES LTD., developers,
manufacturers, exporters and marketers of pharmaceuticals.
DEXCEL PET ISRAEL LTD.
DEXXON
HOLDINGS LTD.
DEXXON
TECHNOLOGIES 2005 LTD.
BANKERS
Bank
Hapoalim Ltd., Kikar Paris Branch (No. 736), Haifa, account No. 8902.
A check
with the Central Banks’ database did not reveal any negative information
regarding subject’s a/m account.
First
International Bank of Israel Ltd., Haifa Main Branch (No. 006), Haifa.
Bank
Hapoalim Ltd, Main Branch (No. 700), Haifa and Central Branch (No. 600), Tel
Aviv.
CHARACTER AND REPUTATION
Nothing
unfavourable learnt.
We called
subject's officials and were asked to send a fax, which we did, and they will
consider answering. In the past recent times, they refused to disclose any
details.
Subject’s
parent DEXXON is one of the largest drug manufacturers in Israel. Its drugs are
well-known and leading brands in Israel.
DEXXON's
plants are approved by the US FDA, the UK MHRA and the German authorities and
fully comply with current GMP.
In
January 1999, subject has launched a claim at the Tel Aviv District Court
against ASTRA of Sweden, claiming that the latter is using unlawful measures to
prevent subject from producing a medication against ulcers, thus causing loss
of profits in millions of dollars.
Subject claimed that the patent which serves as the basis to the
defendant’s claim is not sufficient to prevent the manufacture by subject.
In
October 1999 the Tel Aviv District Court issued a temporary injunction against
subject, upon the request of AKTIEBOLAJET HASSLER of Switzerland (of the ASTRA
GROUP), prohibiting subject from marketing the said medication (OMEPRADEX).
In August
2002, it was reported that the DEXXON Group submitted 6 new drugs for the FDA
approval. The new drugs, according to the Group’s expectations, are expected to
increase the Group’s 2005 sales to hundreds of millions of US$.
The local pharmaceutical industry
employs 7,000 employees directly and an additional 20,000 indirectly.
According to the Industrials Association,
sales of the pharmaceutical sector reached US$ 3.1 billion in 2005, a 29%
increase from 2004. Sales to the local market were US$ 600 million, same as in
2004, and exports were US$ 2.5 billion, 40% increase from 2004.
In the first 3 quarters of 2006, exports
were US$ 2.27 billion (50% increase compared to the parallel period in 2005).
Most exports (72%) are to the USA and 13% to the EU.
The
pharmaceutical market is considered stable and payment morality is good.
SUMMARY
Good for
trade engagements.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|