MIRA INFORM
REPORT
|
Report Date : |
29.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
TEVA PHARMACEUTICAL INDUSTRIES LTD. |
|
|
|
|
Formerly Known As : |
TEVA MIDDLE EAST PHARMACEUTICAL AND CHEMICAL WORKS LTD |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.09.2010 |
|
|
|
|
Year of Establishment : |
1901 |
|
|
|
|
Legal Form : |
Public Limited Liability Company |
|
|
|
|
Line of Business : |
Developers, Manufacturers, Marketers and Exporters of generic and proprietary
branded pharmaceuticals, biogenerics, and active pharmaceutical ingredients
(APIs) worldwide |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment
Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
TEVA PHARMACEUTICAL INDUSTRIES LTD.
Telephone 972
3 926 72 67; 926 76 52
Fax 972 3 926 75 19;
924 60 26
E-mail elana.holzman@teva.co.il
Kiryat Arie Industrial Zone
PETACH TIKVA-49150-ISRAEL
HISTORY & LEGAL FORMATION
Originally founded in
Later registered as a public limited liability company, as per file No.
52-000721-2 on the 26.4.1935, under the name of TEVA MIDDLE EAST PHARMACEUTICAL
AND CHEMICAL WORKS LTD.
Following certain changes, a new public limited liability company was
registered as per file No. 52-001395-4 on the 13.2.1944, under the present
name.
Since 1976 the company is a merger of the following companies:
1. TEVA LTD.,
2. ASSIA LABORATORIES LTD.,
3. ZORI
At later dates
published a prospectus offering its shares to the public both in
SHARE CAPITAL
Authorized share
capital
2,500,000,000 ordinary shares
of
of which
937,417,821 shares amounting to
SHAREHOLDERS
1. CAPITAL
RESEARCH GLOBAL INVESTORS, 5.73%, an American institutional investor,
2. Dr.
Philip Frost, 1.57%,
3. Shares
are also traded on the Tel Aviv Stock Exchange, the NASDAQ Exchange Stock
Exchange (symbol TEVA), as well as on Seaq International in
The Public holds some 88% of
subject’s issued shares.
DIRECTORS
1. Dr. Phillip Frost, Chairman,
2. Dan S. Suesskind,
3. Elon Kohlberg,
4. Haim Hurvitz,
5. Prof. Roger Konberg,
6. Amir Elstein,
7. Mrs. Ruth Cheshin,
8. Erez Vigodman,
9. Ory Slonim,
10. Dr. Leora (Rubin) Meridor,
11. Roger Abravanel,
12. Prof. Moshe Many,
13. Abraham E. Cohen,
14. Joseph Nitzani,
15. Dan Propper.
GENERAL MANAGER
Shlomo Yanai.
BUSINESS
Developers, manufacturers, marketers and exporters of generic and
proprietary branded pharmaceuticals, biogenerics, and active pharmaceutical
ingredients (APIs) worldwide. Via subsidiaries also imports and markets locally
drugs, healthcare products, medical equipment and Clinical
Nutrition products.
TEVA's leading proprietary branded products are the Copaxone for
treatment of Multiple Sclerosis and Azilect for treatment of Parkinson's
Disease.
Also provides specialty pharmaceutical products, which include respiratory
products based on its proprietary delivery systems, APIs for respiratory,
cardiovascular, anti-cholesterol, central nervous system, dermatological,
hormones, anti-inflammatory, oncology, immunosuppressants, and muscle
relaxants, as well as women’s health care products. In addition also holds a
biotechnology platform focused on the development of peptide and protein-based
medicines.
96% of sales are from pharmaceutical products, 4% from API products.
Over 96% of sales are for export.
Q3 2010: 64% of total sales are to North America, 22% to Western Europe
and 14% to the rest of the world (including
Among local suppliers: AVRAHAM HARATI, K.B.Y. LAHAT TECHNOLOGIES, YAIL
NOA AGENCIES, OROKIA ISRAEL, CENTIMPORT MARKETING, R.B. SAPIR INDUSTRIES,
ATEKA, KINETIC SYSTEMS, SAVION INDUSTRIES, GADOT CHEMICALS, PETRUS CHEMICALS,
ZIFRONI CHEMICALS, SELF MEDICATION MARKETING, DEPOTCHEM, BEITH DEKEL
ENGINERING, A. SHITZER, MEDITREND MARKETING, TAGAD CHEMICALS, MARLOV, DEAL
ENGINEERS, A.D. SINUN, HELION, ELCON – MAMAB, BEIT DEKEL, DOR CHEMICALS, BERLIN TECHNOLOGIES, etc.
Operating from:
1.
Corporate Headquarters (mostly leased) on an area
of 9,125 sq. meters in
2.
Owned plants & Labs & offices (3 sites, on
a leased plot) on an area of 11,897 sq. meters in
3.
Plants & Labs (mostly owned) in Kfar Saba (
4.
A network of subsidiaries primarily located in
North America, Europe, Latin America and
Having some
41,000 employees, of which
MEANS
Current market
value US$ 50,186 million.
In January 2010 subject reported
it will Buy Back for its own shares in volume of up to US$ 1 billion, and in
January 2011 announced on an early redemption of bond serie it issued in 2006
(for the IVAX acquisition) in sum of US$ 813 million.
Subject also announced it has entered into a new three-year, US$1.5
billion unsecured revolving credit facility, which replaces and expands
existing credit lines at terms that are more favorable to them.
Subject and several of its subsidiaries are “Approved Enterprises” and
as such enjoys tax benefits and State incentives.
There is 1 charge
for an unlimited amount registered on the company’s assets (shares in a
subsidiary), in favor of CLAL BIOTECHNOLOGY INDUSTRIES LTD.
Consolidated B/S shows:
US$
(millions)
30.09.2010 31.12.2009
ASSETS
Current assets
Cash and cash equivalents 935 1,995
Short term investments 21 253
Accounts receivable 5,228 5,019
Inventories 3,862 3,332
Prepaid expensed and other
current assets 1,813 1,542
11,859 12,141
Long-term investments and receivables 680 534
Property, plant & equipment (net) 4,228 3,766
Identifiable intangible assets (net) 5,881 4,053
Goodwill 15,569 12,674
Other assets 819 642
39,036 33,810
====== ======
LIABILITIES
Current liabilities 9,323 7,602
Long term liabilities 8,007 6,949
Equity 21,706 19,259
39,036 33,810
====== ======
ANNUAL SALES
Consolidated
Statement of Income
US$
(millions)
Year
ended 31.12
2007 2008 2009
Sales 9,408 11,085 13,899
Gross profit 4,877 5,968 7,367
Operating income 2,395 1,145 2,405
Income before income
taxes 2,353 827 2,203
Net income 1,952 635 2,004
====== ====== ======
Consolidated
first 9 months of 2010 sales US$ 11,703 million (16% increase compared to the
parallel period in 2009), making a gross profit of US$ 6,601 million, operating
profit of US$ 3,097 million and net income of US$ 2,560 million.
Note: Q3 2010 sales
include RATIOPHARM's sales.
OTHER COMPANIES
Principal operating subsidiaries are (all 100% stake unless otherwise
stated):
TEVA
PHARMACEUTICALS USA, INC.,
IVAX PHARMACEUTICAL IRELAND, branch of IVAX
INTERNATIONAL B.V.,
IVAX ARGENTINE S.A., TEVA TUTEUR S.A.,
Argentine,
TEVA
LABORATORIO CHILE S.A.,
PLIVA HRVATSKA d.o.o.,
PLIVA d.d., 98%,
TEVA PHARMACEUTICALS CR s.r.o,
TEVA CZECH INDUSTRIES s.r.o,
TEVA CLASSICS
S.A.S,
TEVA SANTE S.A.S,
AWD PHARMA GmbH
& CO. KG,
TEVA
PHARMACEUTICAL MARKETING PRIVATE LIMITED CO.,
TEVA PHARMA ITALIA
S.R.L.,
LEMERY
TEVA PHARMACEUTICALS POLSKA sp.
PLIVA KRAKOW SA,
PLIVA RUS LLC,
TEVA LLC,
LABORATORIOS DAVUR S.L.,
PLANTEX USA INC,
PLANTEX CHEMICALS B.V., the
PHARMACHEMIE
B.V., the
TEVA
PHARMACEUTICALS EUROPE B.V., the
TEVA ANIMAL HEALTH INC.,
TEVA U.K.
LIMITED, U.K,
TEVA
DEUTCHLAND
ASSIA CHEMICAL INDUSTRIES LTD., developers, manufacturers,
exporters and marketers of Active Pharmaceutical Ingredients (API) and fine
chemicals and raw materials for the pharmaceutical industry.
SALOMON
LEVIN & ELSTEIN LTD. (S.L.E), importers and distributors of pharmaceuticals
and allied goods.
TEVA MEDICAL LTD., manufacturers,
importers, marketers of medical equipment, specializing in dialysis systems and
solutions.
PLANTEX LTD.,
developers, manufacturers and marketers of raw materials for generic medicine,
part of API Division.
ABIC LTD.,
developers, manufacturers, exporters and marketers of pharmaceutical & fine
chemicals.
MERCKLE
RATIOPHARM GROUP
BANKERS
Bank Leumi
Le’Israel Ltd., Central Branch (No. 800), Tel Aviv.
Bank Hapoalim
Ltd., Belinson Branch (No. 552), Petach Tikva.
Israel Discount Bank
Ltd., Main Branch (No. 010), Tel Aviv.
Mizrahi Tefahot
bank Ltd., Main Business Branch (No 461), Tel Aviv.
CHARACTER AND REPUTATION
Nothing
unfavorable learned (apart of several pending commercial lawsuits, none of
which is of significance, while some were resolved in February 2010).
Subject 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. TEVA’s global share in the generic
pharmaceutical market is 11% and in the American market share is estimated to
be 24% (and market share of 16% in total prescription drugs in
In the local
market subject has a 25% market share in the pharmaceutical field. TEVA is the
largest non-governmental supplier of healthcare products and services in
Subsidiary
NOVOPHARM, now TEVA
Subject's first brand-name
drug Copaxone for multiple sclerosis remains its biggest source of sales and
profit.
In 1996 subject acquired American BIOCRAFT
for US$ 289 million in shares deal and in 1999 COPELY of the
In April 2002 subject acquired BAYER
CLASSICS, a subsidiary of BAYER of
In June 2002,
subject completed its latest acquisition of HPFC (HONEYWELL PHARMACEUTICAL FINE
CHEMICALS), the raw material for medicines division of HONEYWELL in
At end of 2003
subject acquired SICOR, developers of API products and generic pharmaceuticals,
for US$ 3.4 billion, US$ 2 billion in cash and US$ 1.4 billion in shares.
In August 2004,
subject acquired DORUM of Italy, the generic arm of the PFIZER Group, for a sum
of €70 million.
In January 2006,
subject completed its major acquisition of IVAX CORP., a main competitor in the
generic drugs field, in a transaction valued US$ 8 billion in cash and shares.
Subject completed a US$ 2.75 billion capital raise in a public offering of
bonds for financing the IVAX deal.
In mid 2007 subject
completed the acquisition of Turkish MED ILAC in a deal valued several tens US$
millions.
As part of
subject’s entrance into the bio-generic field, it acquired in February 2008 the
American pharmaceutical company CoGenesys, operating in the biological
treatments, for US$ 400 million. Subject also signed a cooperation agreement
with Swiss LONZA.
In 2007 subject
launched its 2nd proprietary branded product (after the Copaxone),
the Azilect - for treatment for Parkinson's Disease (PD).
In January 2008, subject
published its accrued generic drugs data, for file pending for FDA aspproval,
which represent total sales of US$ 103 billion in terms of the original drugs
and reflects subject's potential.
Also
in January, subject signed a cooperation agreement with Bel
In March 2008, it
was reported that as part of TEVA's expansion strategy in Europe, it is
investing close to US$ 100 million in manufacturing facility in Hungary, US$
In July 2008 TEVA
completed the acquisition of BENTLEY PHARMACEUTICALS of
In February 2009,
subject completed the sale of its veterinary business unit in
In September 2008
subject announced a joint venture with KOWA of Japan, designed to expand
operations in the Japanese market.
In December 2008
it was reported on winning 20% of a German Health fund AOK tender, whose value
is estimated at €200 million per
year.
In December 2008
subject completed the acquisition of BARR PHARMACEUTICALS, INC., the 4th
largest generic drug company worldwide (established 1970, with 2007 sales were
US$ 2.5 billion), for US$ 7.46 billion (40% in shares, rest in cash), as well
as taking upon itself BARR's debt in volume of US$ 1.5 billion. The acquisition
strengthens subject’s position in the
In
January 2009 it was reported that TEVA Israel enters the field of Clinical
Nutrition marketing, starting with nutrition supplements developed by israeli
firms ENZYMOTEC and SE-CURE PHARMACEUTICALS.
In
May 2009 subject started the constrution of its new logistic center in
In August 2009 it was reported
that subject’s American rival MYLAN submitted for FDA approval to the generic
version for subject’s flagship drug Copaxone, which poses a major blow for
subject when it patent will be over in 2014.
In December 2009 subject
announced it will invest US$ 60 million in ONCOGENEX PHARMASEUTICALS, of
In December 2009 it was
reported that subject acquired control of TAISHO, of
In August 2010,
TEVA completed the acquisition of RATIOPHARM,
In
January 2011 subject completed the acquisition of THÉRAMEX, MERCK KGaA's European based
women's health business, for € 265 million.
SUMMARY
Good
for trade engagements and all credits.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.74 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.62.73 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.