MIRA
INFORM REPORT
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Report Date : |
10.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
PHARMACARE PLC |
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Registered Office : |
P.O. Box 677, Betunia Industrial Zone, Ramallah
Palestinian Authority |
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Country : |
Israel |
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Date of Incorporation : |
1985 |
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Legal Form : |
A Foreign Public Limited Company |
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Line of Business : |
Importers,
Manufacturers, Marketers, Distributors and Exporters of Pharmaceuticals. |
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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Maximum Credit Limit : |
US$ 180,000. |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
PHARMACARE PLC
P.O. Box 677
Betunia Industrial
Zone
RAMALLAH
PALESTINIAN
AUTHORITY
Telephone 972 2
290 06 80
Fax 972 2 290 01
89
HISTORY
A foreign public limited
company (PLC), established in 1985, and registered in the Palestinian
Authority, as per file No. 56-260028-8.
SHARE CAPITAL
Authorized share
capital Jordanian Dinnar (JD) 10,000,000.00, divided into: 10,000,000 ordinary
shares of JD 1.00 each, Of which shares amounting to JD 4,600,000.00 were
issued.
SHAREHOLDERS
1. GRUNENTHAL GMBH, 30%, of
Germany,
2. Over 50 smaller shareholders.
GENERAL MANAGER
Basem S. Khoury,
also founder of subject.
BUSINESS
Importers, manufacturers,
marketers, distributors and exporters of pharmaceuticals. Also operating a
drugstore in Jerusalem.
Sales are in the
Palestinian Authority, to hospitals, pharmacies, etc., serving some 1,200
clients in the West Bank, Gaza Strip and Jerusalem.
Some 20% of sales
are for export (in money terms, 40% export in terms of units).
Sole
representatives of: GRUNENTHAL of Germany.
Operating from
main owned premises, including offices, distribution center and manufacturing
facilities, on an area of 6,000 sq. meters, in the Betunia Industrial Zone,
Ramallah, West Bank, Palestinian Authority. Also operating from:
1. A distribution center in
Gaza,
2. A drugstore in Jerusalem,
3. Offices in Russia and
Belarus.
Having over 200 employees.
MEANS
Current stock is valued at NIS 8,000,000.
Owned property in
Betunia, Ramallah is valued at US$ 3,000,000.
Subject has
submitted a prospectus to the Palestinian Securities Exchange in Ramallah and expects
to issue its shares to the public by the first quarter of 2008, according to a
company value of US$14 million (the issuance planned originally for June/July
2007, however has been postponed).
ANNUAL SALES
2005 sales claimed
to be US$ 5,900,000.
2006 sales claimed
to be US$ 6,200,000.
2007 sales claimed
to be around US$ 8,000,000 (NIS 33,500,000).
BANKERS
Jordan National
Bank (Al Ahli Al Urduni Bank), Ramallah Branch (Al Quds Street), Ramallah,
Palestinian Authority.
Mercantile
Discount Bank Ltd., Salah-A-Din Branch (No. 638), Jerusalem.
HSBC Bank Middle
East Ltd., Ramallah Branch (Yaffa Street), Ramallah, Palestinian Authority, and
Amman Branch, Jordan.
CHARACTER AND
REPUTATION
Nothing
unfavorable learned.
Subject's products
are GMP compliant.
Subject is the 3rd
largest pharmaceuticals company in the Palestinian market.
There were 7 drug
factories in the Palestinian Territories as of 2005 and over 1,000 pharmacies
spread across the territories. The
Palestinian Ministry of Health expenditure on medications, medical disposable
and lab reagents in 2005 were US$ 31.5 million (were US$ 26.1 million in 2004).
We are informed,
that due to the poor economic situation in the Gaza Strip, subject's activities
in Gaza have also been harmed, though the branch is operational.
The World Bank forecasts a negative growth rate of 2% per annum in the
Palestinian economy, unless a drastic change occurs in the political
environment.
The GDP per capita dropped by 40% since 1999 (GDP in 1999 reached US$
1,500), and the economy is still deteriorating, although during 2004, the
Palestinian economy started to recover for the first time since the
deterioration in the political situation in the region in October 2000.
The World Bank
Report from 2006 states that year 2006 has been disastrous and one of the worst
years in their economic history, following the rising of the Hamas government.
It led to the suspension of donations and financial aid from the Western world,
as well as to internal conflict, including violence, between the Hamas
supporters and those of the Phatah movement. While the situation in the West
Bank (controlled by Phatah) is relatively stable, the economic condition in the
Gaza Strip (controlled by Hamas) is getting worst each day.
According to
experts reports from December 2006, total GDP of the Palestinian Economy in
2006 was US$ 3 billion, and deteriorated to lower than US$ 1,000 GDP per
capita.
The Palestinian total annual export is
evaluated at US$ 0.5 billion. The industrial activity turnover is evaluated at
US$ 1.5 billion (data source as of July 2007), with some 80,000 employees.
It should be noted, that in mid December 2007 a special forum of donor
countries was committed to allocate US$ 7.4 billion to the Palestinian Authority,
30% of which are designed for industrial and economic development.
SUMMARY
Good for trade
engagements.
Maximum unsecured
credit recommended US$ 180,000.
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. |
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%)