MIRA INFORM REPORT

 

 

Report Date :

31.08.2012

 

IDENTIFICATION DETAILS

 

Name :

ASSIA CHEMICAL INDUSTRIES LTD.

 

 

Formerly Known As :

CHEMICAL EXPORT INDUSTRIES OF ASSA LTD

 

 

Registered Office :

P.O. Box 3190, Petach Tikva 2 Denmark Street Kiryat Arie Industrial Zone Petach Tikva    4959279

 

 

Country :

Israel

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

14.08.1957.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, manufacturers, exporters and marketers of Active Pharmaceutical Ingredients (API) and fine chemicals and raw materials for the pharmaceutical industry.

 

 

No. of Employees :

750

 

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

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ISRAEL - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

 

Source : CIA


Company name and address      

 

ASSIA CHEMICAL INDUSTRIES LTD.

(Also trading as: TEVA ASSIA)

Telephone  972 3 925 55 55

Fax           972 3 924 60 53

P.O. Box 3190, Petach Tikva

2 Denmark Street

Kiryat Arie Industrial Zone

PETACH TIKVA    4959279          ISRAEL

 

2nd Address:

P.O. Box 2049

Emek Sara

BEER SHEVA     8412316         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-016828-9 on the 14.08.1957.

Originally registered under the name CHEMICAL EXPORT INDUSTRIES OF ASSA LTD., which changed to the present name on the 06.02.1977.

 

On the 08.07.2002, TEVA TECH LTD. (established in 1983) was merged into subject.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 300,000,000.00, divided into: -

                300,000,000 ordinary shares of NIS 1.00 each,

of which 20,556,739 shares amounting to NIS 20,556,739.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by TEVA PHARMACEUTICAL INDUSTRIES LTD.

TEVA is a public limited company, whose shares are traded on the Tel Aviv Stock Exchange, the New York Stock Exchange (NYSE:TEVA), as well as on Seaq International in London and the Frankfurt and Berlin Stock Exchange.

 

 

DIRECTORS

 

1.    Dov Primovich,

2.    Aharon Ya'ari,

3.    Evgeni Valdman,

4.    Erez Israeli,

5.    Uri Umid.

 

                                                                                                                           

GENERAL MANAGER

 

Dr. Jeremy Levin (of subject and of parent co. TEVA).

 

Evgeny Valdman is the Plant Manager in Teva Tech Site.

 

 

BUSINESS

 

Subject is part of the A.P.I Div. of TEVA Group (known as TAPI – Israel).

Developers, manufacturers, exporters and marketers of Active Pharmaceutical Ingredients (API) and fine chemicals and raw materials for the pharmaceutical industry.

Most sales are for exports.

 

Operating from main premises (offices, plant, R&D facilities), on an area of 11,800 sq. meters, owned by the TEVA Group, in 2 Denmark Street, Kiryat Arie Industrial Zone, Petach Tikva and from facilities (plant, R&D and offices), on an area of 110,000 sq. meters, in Teva Tech Site, Ramat Hovav.

TEVA Israel also operates from several other facilities in Israel, including from Group's headquarters in 5 Basel Street, Kiryat Arie Industrial Zone, Petach Tikva (including Labs and Chain Supply Div. in 16 Basel Street) and from a new logistic center in Hevel Modi'in Industrial Park (near Shoham), on an owned area of 77,000 sq. meters, as well as facilities abroad.

 

Having some 750 employees.

There are 45,754 employees serving TEVA Group, of which 7,110 in Israel (had 39,660 employees in 2011, rise is mainly due to CEPHALON acquisition).

 

 

MEANS

 

TEVA current market value US$ 37,985.1 million.

 

Subject and other companies in the TEVA Group are “Approved Enterprises” and as such enjoy tax benefits and State incentives.

 

There is 1 charge for an unlimited amount registered on the company's assets, in favor of the State of Israel (charge placed January 1995).

 

Financial data is included in the consolidated B/S of parent company TEVA PHARMACEUTICALS INDUSTRIES LTD., which shows:


 

                                                                                                  US$ (millions)

                                                                                           30.06.2012            31.12.2011

ASSETS

Current assets

     Cash and cash equivalents                                                      1,188                    1,096

     Accounts receivable                                                               5,430                    6,213

     Inventories                                                                             5,293                    5,012

     Prepaid expensed and other current assets                              2,314                    2,132

                                                                                               14,225                  14,453

 

Long-term investments and receivables                                         1,115                       991

Property, plant & equipment (net)                                                 6,082                    5,947

Identifiable intangible assets (net)                                                 8,978                  10,316

Goodwill                                                                                   18,369                  18,293

Other assets                                                                                 112                       142

                                                                                               48,881                  50,142

                                                                                             ======                ======

LIABILITIES

Current liabilities                                                                       10,005                  13,676

Long-term liabilities                                                                   15,983                  14,123

Equity                                                                                      22,893                 22,343

                                                                                               48,881                  50,142

                                                                                             ======                ======

 

 

REVENUES

                                                      TEVA PHARMACEUTICALS INDUSTRIES LTD.

                                                                         Consolidated Statement of Income

                                                                                            US$ (millions)

                                                                                          Year ended 31.12

                                                                                    2009              2010              2011

Sales                                                                         13,899           16,121           18,312

       (of which sales of API)                                               565                641                747

Gross profit                                                                  7,367             9,065             9,515

Operating income                                                          2,405             3,871             3,109

Income before income taxes                                          2,203             3,646             2,956

Net income                                                                   2,004             3,339             2,768

                                                                               ======        ======         ======

 

TEVA PHARMACEUTICALS consolidated first half of 2012 sales were

US$ 10,096 million (22% increase compared to the 1stH of 2011), making a gross profit of US$ 5,266 million, an operating income of US$ 1,935 million and a net income of US$ 1,714 million.

Sales of API for the period totaled US$ 399 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 and proprietary drugs in all major therapeutic categories, which are distributed worldwide.

Worldwide operations are conducted through a network of subsidiaries primarily located in North America, Europe, Latin America and Asia. Having direct operations in some 60 countries, including 56 finished dosage pharmaceutical manufacturing sites in 23 countries, 17 pharmaceutical R&D centers and 21 API manufacturing sites.

Principal operating subsidiaries are (all 100% stake unless otherwise stated):

TEVA PHARMACEUTICALS USA, INC.,

IVAX INTERNATIONAL B.V., Holland, and IVAX PHARMACEUTICAL IRELAND,

TEVA ANIMAL HEALTH INC., USA,

CEPHALON INC., USA.

RATIOPHARM GMBH, Germany,

TEVA CLASSICS S.A.S, France,

NOVOPHARM LTD., Canada,

TEVA PHARMA ITALIA S.R.L., Italy

TEVA PHARMACEUTICALS CR s.r.o, Czech Republic,

BARR PHARMACEUTICALS, INC., USA,

TEVA HUNGARY PHARMACEUTICAL MARKETING LTD., Hungary,

TEVA PHARMACEUTICALS POLSKA sp. Z.o.o., Poland,

AWD PHARMA GmbH & CO. KG, Germany,

TEVA DEUTCHLAND GmbH, Germany,

TAIYO PHARMACEUTICAL INDUSTRY CO. LTD., Japan,

TAISHO PHARMACEUTICAL INDUSTRIES, LTD., Japan,

TEVA U.K. LIMITED, U.K,

PHARMACHEMIE B.V., the Netherlands,

PLANTEX CHEMICALS B.V., the Netherlands,

LEMERY S.A. DE C.V., Mexico,

LABORATORIOS ELMOR S.A., Venezuela,

LABORATORIO CHILE S.A., Chile,

PLIVA HRVATSKA d.o.o., Croatia,

PLIVA d.d., Croatia, 98%,

PLIVA KRAKOW SA, Poland, 97%,

LABORATORIOS DAVUR S.L., Spain,

PLIVA RUS LLC, Russia,

GALENA PHARMA LLC, Russia,

TEVA-KOWA PHARMA CO., LTD., a joint venture in Japan, owns TAISHO PHARMACEUTICAL INDUSTRIES LTD., Japan.

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.

And many more in the TEVA Group.

 

BANKERS

 

Bank Hapoalim Ltd., Belinson Branch (No. 552), Petach Tikva.

Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No.800), Tel Aviv.

Israel Discount Bank Ltd., Jerusalem Main Branch (No. 060), Jerusalem.

Mizrahi Tefahot Bank Ltd., Main Business Branch (No 461), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is considered one of TEVA’s principal operating subsidiaries in terms of pharmaceuticals and API R&D, manufacturing and 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. 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 USA).

In the local market TEVA has a 25% market share in the pharmaceutical field. TEVA is the largest non-governmental supplier of healthcare products and services in Israel.

 

Other significant developments in TEVA Group history:

In June 2002, TEVA completed its acquisition of HPFC (HONEYWELL PHARMACEUTICAL FINE CHEMICALS), the raw material for medicines division of HONEYWELL in Italy, in consideration of US$ 90 million.

 

At end of 2003 TEVA acquired SICOR, developers of API products and generic pharmaceuticals, for US$ 3.4 billion (US$ 2 billion cash, US$ 1.4 billion shares).

 

In January 2006 TEVA finalized a major acquisition of its main competitor in generic drugs field IVAX CORP., in value of US$ 8 billion (cash and shares).

 

In July 2008 TEVA acquired BENTLEY PHARMACEUTICALS of Spain, manufacturers and marketers of generic drugs, for US$ 360 million (in cash).

 

In December 2008 TEVA completed the acquisition of BARR PHARMACEUTICALS, INC. (NYSE: BRL), the 4th largest generic drug company worldwide (established 1970), in consideration of US$ 9 billion - 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 TEVA’s geographic expansion, as well as its penetration into the women health field with its emergency contraception drug, approved by the FDA in July 2009.

 

In August 2010, TEVA completed the acquisition of RATIOPHARM, Germany's second largest generics producer for the sum of $4.95 billion (€3.625 billion). Following the acquisition, TEVA will be the number one generic company in Europe, holding the leading market position in ten countries, as well as ranking in the top three in seven additional countries.

 

In January 2011 TEVA completed the acquisition of THÉRAMEX, MERCK KGaA's European based women's health business, for 265 million.

 

In January 2011 TEVA acquired CORPORACION INFARMASA of Peru (purchase price not published). The acquired company is to join TEVA’s Peruvian company MEDCO CORPORACION, becoming Peru’s 2nd largest pharmaceutical company.

 

In July 2011 TEVA completed the acquisition of 57% of TAIYO (Japan's 3rd largest pharmaceutical company) for US$ 460 million.

 

In August 2011 it was reported that TEVA intends on erecting a natural gas power plant (45MV) in subject's Teva Tech Site in Ramat Hovav, designed to supply the plant's electricity consumption, with an investment of US$ 70 million.

 

In September 2011 TEVA acquired the partners shares (50%) in the TEVA-KOWA PHARMA CO. Japanese joint ventue for US$ 150 million, and reached full ownership.

 

In October 2011 TEVA completed the acquisition of CEPHALON, a biotechnological company, developers of nerve system drugs and more, for US$ 6.8 billion. CEPHALON, established 1987, with 3,726 employees, was publicly traded on Nasdaq. Its ethical drugs portfolio is complimentary to TEVA's.

 

In 2011 TEVA Group completed its new logistic center in Hevel Modiin Industrial Park (near Shoham), to where they shifted the logistics activities. Estimated investment in the project is valued at US$ 100 million.

 

In August 2011 it was reported that TEVA intends on erecting a natural gas power plant (45MV) in its Teva Tech plant in Ramat Hovav, designed to supply their plant's electricity consumption, with an investment of some US$ 70 million.

 

In May 2012, Mr. Shlomo Yanai stepped down as President and CEO of TEVA, and and was replaced by Dr. Jeremy Levin.

 

In June 2012 the Manhattan Federal Court ruled in favor of TEVA, ruling that TEVA's patent on Copaxone (TEV's flagship drug with US$ 3.57 billion sales in 2011) is until May 2014, and no generic drug can be marketed until then.

 

In July 2012 it was reported that subject will receive NIS 1 million from the Ministry of Energy, to convert its plant to operate base on natural gas.

 

The Israeli market for pharmaceuticals was estimated at US$ 1,600 million in 2008. Medicines for human consumption comprised US$ 1,124 million of which, including from import (which is around NIS 4,000). Medicines market in 2011 is estimated to be closer to NIS 5,000 million.

The non-prescription drugs market in Israel is valued at NIS 750 million per annum (some 15% of the local whole drugs market), with annual growth rate of circa 15%.

In 2011 import of medicines reached US$ 497 million (were US$ 555 million in 2010).

 

Exports of pharmaceuticals in 2011 reached US$ 7,275.1 million, representing 10% increase from 2010 (rose 41.5% from 2009).

Sales for export are to over 120 countries. Products included drugs, raw materials for medicine production, veterinary medication.

 

There are some 13 generic pharmaceutics production companies in Israel and the industry employs 9,000 employees.

 

 

SUMMARY

 

Good for trade engagements and all credits.

 

Note: Since the beginning of 2012 Israel Post started using a new area code method of 7 digits (the old method of 5 digits will still be valid till end of 2012).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.65

UK Pound

1

Rs.88.10

Euro

1

Rs.69.83

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.