MIRA INFORM REPORT
|
Report Date : |
03.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
PHARMACARE PLC |
|
|
|
|
Registered Office : |
P.O. Box 677, Betunia Industrial Zone, Ramallah, West Bank Palestinian Authority |
|
|
|
|
Country : |
Israel |
|
|
|
|
Year of Establishment : |
1985 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Importers, Manufacturers,
Marketers, Distributors and Exporters of pharmaceuticals, cosmetics and
chemicals. |
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 |
|
Maximum Credit Limit : |
US$ 300,000. |
|
Status : |
Satisfactory |
|
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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
Israel |
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
PHARMACARE PLC
Telephone 972
2 290 06 80
Fax 972 2 290 01 89
P.O. Box 677
Betunia Industrial Zone
RAMALLAH WEST
BANK PALESTINIAN AUTHORITY
HISTORY & LEGAL FORMATION
Originally established
as a foreign private limited company, established in 1985, registered in the
Palestinian Authority as per file No. 56-260028-8.
At a later stage
converted into a public limited company (same registration No.).
SHARE CAPITAL
Authorized share
capital Jordanian Dinnar (JD) 7,000,000.00, divided into:
7,000,000 shares of par value
of JD 1.00 each,
of which shares
amounting to JD 6,000,000.00 were issued.
SHAREHOLDERS
1. GRUNENTHAL GMBH, 27%, of
Germany,
2. Basem S. Khoury, 20%,
3. Many other smaller
shareholders.
GENERAL MANAGER
Basem S. Khoury,
also founder of subject.
BUSINESS
Importers,
manufacturers, marketers, distributors and exporters of pharmaceuticals,
cosmetics and chemicals.
Sales are in the
Palestinian Authority, to hospitals, pharmacies, etc., serving some 1,200
clients in the West Bank, Gaza Strip and Jerusalem.
Some 15% of sales
are for export (in 2010).
Sole
representatives of: GRUNENTHAL of Germany.
Operating from
main owned premises, including offices, distribution center and manufacturing
facilities, situated on a plot of 12,000 sq. meters, on which 7,000 sq. meters
are built (only 6,000 sq. meters serve subject, 1,000 sq. meters are leased to
3rd parties), in the Betunia Industrial Zone, Ramallah, West Bank,
Palestinian Authority. Also operating from:
1. A distribution center in
Gaza (see more below CHARACTER),
2. Sales office in Belarus,
In addition, subject is erecting a new plant in Malta (was expected to
be opened by the end of 2010).
Having some 230 employees, as of 2010 (similar to 2009).
MEANS
Current stock as of 31.12.2009 was valued at
NIS 14,000,000 (was valued at NIS 12,800,000 at the beginning of 2009 and NIS
8,000,000 at the beginning of 2008).
Owned property in
Betunia, Ramallah was valued at US$
Subject also
receives leasing fees for property in Betunia leased to 3rd parties.
In 2007, subject
submitted a prospectus to the Palestinian Securities Exchange in Ramallah with
intention to issue its shares to the public by the first quarter of 2008,
according to a company value of US$14 million. The issuance has so far not been
materialized due to market and political conditions.
ANNUAL SALES
2005 sales claimed
to be US$ 5,900,000.
2006 sales claimed
to be US$ 6,200,000.
2007 sales claimed
to be NIS 33,500,000.
2008 sales claimed
to be around NIS 36,000,000, of which NIS 7,500,000 were for export.
2009 sales claimed
to be around NIS 40,000,000, of which NIS 5,600,000 were for export.
Later sales
figures not forthcoming.
BANKERS
Jordan National
Bank (Al Ahli Al Urduni Bank), Ramallah Branch (Al Quds Street), Ramallah,
Palestinian Authority.
HSBC Bank Middle
East Ltd., Ramallah Branch (Yaffa Street), Ramallah, Palestinian Authority, and
Amman Branch, Jordan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
So far we did not get updates from subject’s CFO. He asked for a fax
with our request, which we sent, and promised answers. As soon as we get
updates, we shall forward them to you accordingly.
Subject is one of
the largest pharmaceuticals companies in the Palestinian market.
Subject is ISO
9001:2000 certified and its products are GMP compliant.
In June 2008
subject announced on a shipment of pharmaceuticals to Germany, which marks the
first ever Palestinian-made medicine exported to Europe. This is after subject
gained EU approvals, including EU GMP. Subject already exports to African and
Middle Eastern markets.
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).
In 2008 we are
informed, that due to the poor economic situation and deterioration in the
security aspect in the Gaza Strip, subject's activities in Gaza have also been
harmed, though the branch is operational. Since 2009 the situation has been
inconsistent, fluctuating up and down due to the conditions.
During the last couple of years subject closed down its drugstore in
Jerusalem.
According to World
Bank and Palestinian Investment Promotion Agency, total GDP of the Palestinian
Economy in 2008 was US$ 4.6 billion, and GDP per capita is US$ 1,290 (was
US$1,272 in 2006). Generally, by 2006 the GDP per capita dropped by 40% since
1999, following unstable political situation, but has been recovering since
2009 as political climate has stabilized. These figures include the West Bank
and Gaza Strip, whose economy has been in different condition. GDP per capita
in the West bank has climbed to US$ 2,800 by 2009, while remains low in Gaza –
around US$ 1,000 per capita.
In terms of foreign
trade, a growth tendency is noticed: Total Import in 2007 summed up to US$
3,141 million (up from US$ 2,760 million in 2006), while Total Export reached
US$ 513 million (up from US$ 367 million in 2006). 80% of imported goods to the
Palestinian Territories are carried out via Israel.
Yet, other current
indicators are still alarming, mainly in the Gaza Strip, such as high
unemployment rates (18% in the West Bank, 35%-40% in Gaza) and poverty (70% in
Gaza).
The Palestinian
economy suffered a set back in recent years, following the rising of the Hamas
government in Gaza Strip in 2007, which led to internal conflict and clashes
between the Hamas supporters and those of the Phatah movement.
While the
political situation has been stable in the West Bank (controlled by Phatah)
leading to economic growth in recent years, the condition in the Gaza Strip
deteriorated drastically (including the blockage on goods movement in and out
the Strip for long period), mainly after the fighting of Hamas militias with Israeli
Forces. With the end of fighting in Gaza Strip in early 2009, the recovery
efforts are ongoing with donation received from overseas, as well as the
partial lift of goods blockage in 2010, resulting in some improvement in Gaza
economy as well – Gaza Strip economy grew by 16% in 2010 (1% in 2009) according
to the International Monitory Fund (IMF), though situation is still critical.
The Palestinian
economy in the West Bank grew in 2009 by 8.5% and by 9% in the first half of
2010. Palestinian economy grew as a whole by 9% in 2010, after 3% growth in
2008 and nearly zero in 2007. Much of the growth is attributed to the foreign
aid they receive (donation scheduled are up to US$ 7.7 billion in 3 years), and
the relative calm in the political environment, mainly in the West Bank. The
Palestinian Authority reports on growth in taxes collection (which has always
been a major problem due to the lack of enforcement capabilities), with
expected over US$ 2 billion in 2010 (was US$ 1.688 billion in 2009), while the
deficit (dropped from US$ 1.8 billion in 2008 to US$ 1.2 billion in 2010) to be
covered by the donating countries.
SUMMARY
Notwithstanding
the lack of updated data from subject’s officials so far, considered good for trade engagements.
Maximum unsecured credit
recommended US$ 300,000.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.33 |
|
UK Pound |
1 |
Rs.73.89 |
|
Euro |
1 |
Rs.65.57 |
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 |
|
---- |
NB |
New Business |
---- |
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.