MIRA INFORM REPORT

 

 

Report Date :

18.09.2007

 

IDENTIFICATION DETAILS

 

Name :

CHUGAI PHARMACEUTICAL CO LTD

 

 

Registered Office :

2-1-1 Nihombashi-Muromachi Chuoku Tokyo 103-8324

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

Mar 1943

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of prescription drugs

 

 

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

 

Maximum Credit Limit :

Yen 9398.1 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

name

 

CHUGAI PHARMACEUTICAL CO LTD

 

 

REGD NAME

 

Chugai Seiyaku KK

 

 

MAIN OFFICE

 

2-1-1 Nihombashi-Muromachi Chuoku Tokyo 103-8324 JAPAN

Tel        : 03-3273-0554

Fax       : 03-3281-6607

URL      : http://chugai-pharma.co.jp/

E-Mail address: ir@chugai-pharma.co.jp

 

 

ACTIVITIES

 

Mfg of prescription drugs

 

 

BRANCH(ES)

 

Tokyo (2), Sapporo, Sendai, Yokohama, Nagoya, Osaka, Kobe, Fukuoka, other

 

 

FACTORY(IES)

 

Ukima, Fujieda, Utsunomiya, Kamakura

 

 

CHIEF EXEC

 

OSAMU NAGAYAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 326,109 M

PAYMENTS      REGULAR                     CAPITAL           Yen 72,893 M

TREND             STEADY                       WORTH            Yen 391,604 M

STARTED         1943                             EMPLOYES      5,905

 

 

COMMENT

 

MFR OF PRESCRIPTION DRUGS, UNDER ROCHE GROUP OF SWITZ.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 9,398.1 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/12/2007 fiscal term

 

 

HIGHLIGHTS

 

This is a major mfr of prescription drugs, originally started as drug importer.  In 1929, started domestic production of drugs and achieved firm business base with hit products of tonic drink “Guronsan” and home insecticide “Varsan” in early 1950’s.  Belongs to the Roche group of Switz.  Excels in developing new drugs using biotechnology. Expanding sales of remedy for new rheumatic arthritis Actemra jointly with Roche in France, Germany and England.

           

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2006 fiscal term amounted to Yen 326,109 million, a 0.3% down from Yen 327,155 million in the previous term.  This is referred to NHI reimbursement price revisions and a decline in sales of mainstay product Epogin, recombinant human erythropoicin, which was due to the introduction of flat-sum reimbursement for dialysis treatment.  The recurring profit was posted at Yen 60,922 million and the net profit at Yen 38,417 million, respectively, compared with Yen 82,091 million recurring profit and Yen 53,632 million net profit, respectively, a year ago. 

           

(Jan/June/2007 results): Sales Yen 170,877 million (up 12.0%), operating profit Yen 35,779 million (up30.5%), recurring profit Yen 36,750 million (up 23.2%), net profit Yen 21,109 million (up 12.3%).  (% compared with the same period the last year).  Sales of anti-tumor agent Herceptin, annti-HER2 monoclonal antibody, and osteoporosis treatment Evista were brisk, and anti-influenza agent Tamifla increased from the first half of last year.

 

For the current term ending Dec 2007 the recurring profit is projected at Yen 62,300 million and the net profit at Yen 37,000 million, on a 5.8% rise in turnover, to Yen 345,000 million.  Anti-influenza Tamiflu, mainstay, will show grater than expected.  Approval granted to remedy for colonic and reactal cancer Avastin.   

 

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements.    Max credit limit is estimated at Yen 9,398.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Mar 1943

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    733,805,000 shares

Issued:                          559,493,113 shares

Sum:                            Yen 72,893 million

Major shareholders (%): Roche Pharmholding BV (50.0), Master Trust Bank of Japan T (5.7), Japan Trustee

                                    Services Bank T (4.6), Chase Manhattan Bank (London) (1.9), Chase London SL

                                    Omnibus Acct (1.6), State Street Bank & Trust (1.4), Tokio Marine & Nichido Fire Ins

                                    (1.3), Chase Manhattan Bank 385036 (1.0), Company’s Treasury Stock (0.9), Investors

                                    Bank (0.9); foreign owners (70.2).

No. of shareholders:       41,867

Listed on the S/Exchange (s) of: Tokyo

Managements:               Osamu Nagayama, pres; Motoo Ueno, v pres; Ryuzo Kodama, v pres; Tatsumi

                                    Yamazaki, v pres; Harutake Fujita, v pres; Yasuo Maeno, dir

           

Nothing detrimental is known as to the commercial morality of executives.

 

           

OPERATION

           

Activities: Mfg of prescription drugs (100%).

 

Clients: [Mfrs, wholesalers]  Alfresa Corp, Mediceo Paltac Holdings, Suzuken Co, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Roche, Zenyaku Kogyo, Denki Kagaku Kogyo, Pharma, Nippon Becton Dickinson, Sanofi-Aventis, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

SMBC (H/O)

Resona Bank (Tokyo-Chuo)

 

Relations: Satisfactory

 

 

Financials

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2006

31/12/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

326,109

327,155

 

  Cost of Sales

133,086

119,424

 

      GROSS PROFIT

193,023

207,731

 

  Selling & Adm Costs

134,676

128,652

 

      OPERATING PROFIT

58,347

79,079

 

  Non-Operating P/L

2,575

3,012

 

      RECURRING PROFIT

60,922

82,091

　

      NET PROFIT

38,417

53,632

BALANCE SHEET

 

 

 

 

  Cash

　

68,332

74,380

 

  Receivables

 

105,897

118,873

 

  Inventory

 

61,531

47,440

 

  Securities, Marketable

81,894

68,645

 

  Other Current Assets

20,007

19,101

 

      TOTAL CURRENT ASSETS

337,661

328,439

 

  Property & Equipment

85,150

79,459

 

  Intangibles

 

5,131

6,136

 

  Investments, Other Fixed Assets

34,182

42,408

 

      TOTAL ASSETS

462,124

456,442

 

  Payables

 

28,134

20,989

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

37,134

57,479

 

      TOTAL CURRENT LIABS

65,268

78,468

 

  Debentures

 

300

901

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

4,704

6,583

 

  Other Debts

　

248

491

 

      TOTAL LIABILITIES

70,520

86,443

 

      MINORITY INTERESTS

 

1,692

 

Common stock

72,893

72,443

 

Additional paid-in capital

92,747

92,296

 

Retained earnings

226,209

206,834

 

Evaluation p/l on investments/securities

3,236

3,781

 

Others

 

4,109

563

 

Treasury stock, at cost

(7,590)

(7,611)

 

      TOTAL S/HOLDERS` EQUITY

391,604

368,306

　

      TOTAL EQUITIES

462,124

456,442

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2006

31/12/2005

 

Cash Flows from Operating Activities

　

40,538

64,663

 

Cash Flows from Investment Activities

-29,370

-35,459

 

Cash Flows from Financing Activities

-18,796

-12,556

　

Cash, Bank Deposits at the Term End

　

68,332

74,380

ANALYTICAL RATIOS            Terms ending:

31/12/2006

31/12/2005

 

 

Net Worth (S/Holders' Equity)

391,604

368,306

 

 

Current Ratio (%)

517.35

418.56

 

 

Net Worth Ratio (%)

84.74

80.69

 

 

Recurring Profit Ratio (%)

18.68

25.09

 

 

Net Profit Ratio (%)

11.78

16.39

 

 

Return On Equity (%)

9.81

14.56

 

 

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.

 

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

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions