MIRA
INFORM REPORT
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Report Date : |
23.05.2007 |
IDENTIFICATION DETAILS
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Name : |
ASSIA CHEMICAL INDUSTRIES LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
14.8.1957 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, exporters and marketers of fine chemicals for the human
and veterinary pharmaceutical industry. |
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 |
Correct Name &
address
ASSIA CHEMICAL
INDUSTRIES LTD.
2,
PETACH TIKVA 49517
Telephone 972 3 925
55 55
Fax 972 3
924 60 53
HISTORY
A private limited
company, incorporated as per file No. 51-016828-9 on 14.8.1957.
Originally
registered under the name CHEMICAL EXPORT INDUSTRIES OF ASSA LTD., which
changed to the present name on the 6.2.1977.
On 8.7.2002, TEVA
TECH LTD. was merged into subject.
SHARE CAPITAL
Authorized share
capital
SHAREHOLDERS
Subject is fully owned by TEVA PHARMACEUTICAL
INDUSTRIES LTD.
TEVA is a public limited liability company,
whose shares are traded on the Tel Aviv and Nasdaq Stock Exchanges.
DIRECTORS
1. Shlomo Yanai, General Manager
of subject and the TEVA Group,
2. Aharon Ya'ari,
3. David Mizrachi,
4. Ms. Eilzabeth Kogan,
5. Edward Scwartz,
6. Uri Umid,
7. Dov Primovich.
BUSINESS
Manufacturers,
exporters and marketers of fine chemicals for the human and veterinary
pharmaceutical industry.
Most sales are for
exports.
Operating from a
main plant in Ramat Hovav and from premises (offices, plant), owned by the TEVA
Group (serves also other members of the Group), on an area of 11,500 sq.
meters, in 2 Denmark Street, Industrial Area, Petach Tikva.
Having 600
employees.
There are some
14,700 employees serving the TEVA Group (
MEANS
Financial data is
included in the Consolidated B/S of TEVA PHARMACEUTICALS INDUSTRIES LTD., which
shows:
US$
(millions)
31.12.2006 31.12.2005
ASSETS
Current assets
Cash and cash equivalents 1,332 1,276
Short term investments 712 935
Accounts receivable: trade 2,922 1,769
Inventories 1,879 1,114
Prepaid expensed and other current assets __795 __411
7,640 5,505
Investments and
other assets 613 424
Property, plant
and equipment (net) 2,193 1,361
Intangible assets
(net) 1,987 635
Goodwill _8,038 _2,462
20,471 10,387
====== ======
LIABILITIES
Current
liabilities 4,071 2,260
Long term
liabilities 5,223 2,077
Minority interest 35 8
Equity 11,142 _6,042
20,471 10,387
====== ======
TEVA’s current
market value US$ 31.9 billion.
Subject and other
companies in the TEVA Group are “Approved Enterprises” and as such enjoy tax
benefits and State incentives.
There
ANNUAL SALES
TEVA consolidated
2005 sales US$ 5,250,000,000, making a gross profit of US$ 2,480,000,000, an
operating income of US$ 1,312,000,000 and a net profit of US$ 1,072,000,000.
TEVA consolidated 2006
sales US$ 8,408,000,000, making a gross profit of US$ 4,259,000,000, an
operating income of US$ 801,000,000 and a net profit of US$ 546,000,000.
TEVA consolidated
first quarter of 2007 sales US$ 2,080 million (24% increase compared to the
parallel period in 2006), making a gross profit of US$ 1,037 million, an
operating profit of US$ 446 million and a net profit of US$ 342 million.
OTHER COMPANIES
Parent company
TEVA PHARMACEUTICALS INDUSTRIES LTD., developers, manufacturers, marketers and
exporters of pharmaceuticals, chemicals, and veterinary products. TEVA and its
subsidiaries develop generic drugs in all major therapeutic categories, which
are distributed worldwide.
TEVA’s worldwide
operations are conducted through a network of subsidiaries primarily located in
North America, Europe, Latin America and
IVAX CORPORATION INC.,
GOLDLINE
LABORATORIES, INC.,
DORAL
MANUFACTURING INC.,
TEVA
PHARMACEUTICALS USA, INC.
TEVA CLASSICS
S.A., France
TEVA
PHARMACEUTICAL WORKS LTD.,
CORTICOSTEROIDI
S.R.L.,
TEVA PHARMA ITALIA
S.R.L.,
NORTON HEALTHCARE
LIMITED,
TEVA U.K. LIMITED,
PLANTEX U.S.A. INC.,
TEVA PHARMACEUTICALS U.S.A. INC.,
PHARMACHEMIE GROUP,
NOVOPHARM LTD.,
SICOR PHARMACEUTICALS INC.
TIANJIN HUALIDA BIOTECHNOLOGY COMPANY LTD.,
45%,
MEDICA
AG,
SALOMON
LEVIN & ELSTEIN LTD.,
ABIC LTD.,
developers, manufacturers, exporters and marketers of pharmaceutical and fine
chemicals, human and veterinary chemicals, vaccines, anti-cancer products,
animal feed additives and vitamins, agricultural chemicals, etc. Besides
subject, the ABIC Group includes: ABIC VETERINARY PRODUCTS LTD. and ABIC BIOLOGICAL LABORATORIES TEVA LTD.
And
many more in the TEVA Group.
BANKERS
Bank Hapoalim
Ltd., Belinson Branch (No. 552), Petach Tikva.
Bank Leumi
LeIsrael Ltd., Central Branch (No.800), Tel Aviv.
Israel Discount
bank Ltd., Jerusalem Main Branch (No. 060),
Mizrahi Tefahot
bank Ltd., Main Business Branch (No 461), Tel Aviv.
CHARACTER AND
REPUTATION
Nothing
unfavorable learnt.
Subject is
considered one of TEVA’s principal operating subsidiaries in terms of
pharmaceutical or API sales.
TEVA
PHARMACEUTICALS is ranked 1st in the list of leading Israeli
companies in terms of market value. It is ranked among the top 20
pharmaceutical companies in the world and the leading generic pharmaceutical
company.
In the local
market TEVA has a 25% market share in the pharmaceutical field. In 2006 TEVA’s American market share was
estimated to be 11%.
In June 2002, TEVA completed its acquisition of
HPFC (HONEYWELL PHARMACEUTICAL FINE CHEMICALS), the raw material for medicines
division of HONEYWELL in
In November 2003,
TEVA announced that it signed a deal to acquire full ownership in SICOR,
developers of API products and generic pharmaceuticals, for a sum of US$ 3.4
billion, US$ 2 billion in cash and US$ 1.4 billion in shares.
In July 2005, TEVA
announced it signed a deal to acquire IVAX, its main competitor in the generic
drugs field, for a sum of US$ 7 billion in cash and shares. The deal was
finalized in January 2006.
In January 2006,
TEVA completed a US$ 2.75 billion capital raise in a public offering of bonds,
in order to finance the IVAX deal.
According to the
Chairman of the Chemical, Pharmaceutical and Environment Division at the
Industrialists Association, total sales of the branches in 2006 witnessed a
remarkable 12.6% growth to US$ 17.4 billon, after in 2005 sales increased by
10% from 2004.
2006 exports of
the branches were US$ 8.8 billion (35% of which for pharmaceuticals and drugs
and some one third attributed to the chemical industry), a 15.7% increase from
2005, and sales to the local market reached US$ 8.6 billion, a 10% increase
from 2005.
The chemical and
pharmaceutical industries are the 2nd largest export branch (after
the hi-tech) and comprise 30% of
Purchasing abroad
amounted to US$ 1.5 billion in 2006.
The branch
projected sales in 2007 include a 15% rise in sales for export (to US$ 10
billion) and 12% rise in total sales (to US$ 19.5 billion).
The pharmaceutical market is considered stable and
payment morality is good.
SUMMARY
Good for trade engagements.
Maximum unsecured
credit recommended several millions of US$.
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%)