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Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
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Name : |
ASSIA CHEMICAL INDUSTRIES LTD. |
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Formerly Known As : |
CHEMICAL EXPORT INDUSTRIES OF ASSA LTD |
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Registered Office : |
P.O. Box 3190, Petach Tikva 2 Denmark Street Kiryat Arie
Industrial Zone Petach Tikva 4959279 |
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Country : |
Israel |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
14.08.1957 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers, exporters and marketers of Active Pharmaceutical Ingredients (API) and fine chemicals and raw materials for the pharmaceutical industry. |
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No. of Employees : |
1,000 |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its major
imports include crude oil, grains, raw materials, and military equipment. Cut
diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. 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, and production from the Tama field is expected to
meet all of Israel''s natural gas demand beginning mid-2013. 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
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
Additional Address:
P.O. Box 2049
Emek Sara
Beer Sheva 8412316 Israel
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.
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.
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.
1. Dov Primovich,
2. David Mizrachi.
Eyal Desheh, Acting General Manager (also Acting President and General Manager of TEVA PHARMACEUTICAL).
Evgeny Valdman is the Plant Manager in Teva Tech Site.
ASSIA CHEMICAL INDUSTRIES LTD. - 2 -
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 over 1,000 employees.
There are some 50,000 employees serving TEVA Group, of which
some 8,000 employees in Israel (had 45,948 and 39,660 employees in end of 2012
and end of 2011, respectively) (see below CHARACTER on expected lay-off
scheme).
TEVA current market value US$ 37,631.9 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).
In March 2011 TEVA raised US$ 750 million offering bonds on the NASDAQ.
In July 2011 it was reported that TEVA received a US$ 1 billion credit line from Japanese banks for the acquisition of TAIYO.
In April 2012 TEVA raised US$ 2.9 billion via bond issuing and bank loans.
In December 2012 TEVA raised bonds in volume of US$ 2 billion.
In July 2013 it was reported that TEVA received a total of some NIS 12 billion tax incentives between 2006-2011. TEVA insists all tax benefits it got are part of government's approval, on background of local public debate on the matter.
Financial data is included in the consolidated B/S of parent company TEVA PHARMACEUTICALS INDUSTRIES LTD., which shows:
US$ (millions)
30.09.2013 31.12.2012
ASSETS
Current assets
Cash and cash equivalents 1,148 2,879
Accounts receivable 5,191 5,572
Inventories 5,244 5,502
Prepaid expensed and
other current assets 2,323 2,402
13,906 16,355
Property, plant & equipment (net) 6,501 6,315
Identifiable intangible assets (net) 7,004 7,745
Goodwill 18,907 18,856
Other assets 1,532 1,338
47,850 50,609
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LIABILITIES
Current liabilities 12,160 12,888
Long-term liabilities 13,302 14,854
Equity 22,388 22,867
47,850 50,609
====== ======
\
REVENUES
TEVA
PHARMACEUTICALS INDUSTRIES LTD.
Consolidated Statement of Income
US$ (millions)
Year ended 31.12
2010 2011 2012
Sales 16,121 18,312 20,317
(of which sales of API) 641 747 796
Gross profit 9,065 9,515 10,652
Operating income 3,871 3,109 2,205
Income before income taxes 3,646 2,956 1,819
Net income 3,339 2,768 1,910
====== ============
TEVA PHARMACEUTICALS
consolidated first 9 months of 2013 sales were
US$ 14,884 million
(4.1% decrease compared to the parallel period in 2012), making a gross profit
of US$ 7,813 million, an operating income of US$ 1,089 million and a net income
of US$ 889 million.
Sales of API for the
period totaled US$ 529 million (11% decrease compared to the parallel period in
2012).
Parent company TEVA PHARMACEUTICALS INDUSTRIES LTD., developers, manufacturers, marketers and exporters of pharmaceuticals, chemicals, and veterinary products. TEVA and subsidiaries develop generic and proprietary drugs in all major therapeutic categories. 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 52 finished dosage pharmaceutical manufacturing sites in 25 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.
Bank Hapoalim Ltd., Beilinson 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.
Nothing unfavorable learned.
In the business aspect, TEVA has been facing the challenge in respect to the approaching expire of patent of its flagship drug Copaxone (the first brand-name drug), for multiple sclerosis, with US$ 4 billion sales in 2012, some 20% of sales and main profit source in recent years. In June 2012 the Manhattan Federal Court ruled (in favor of TEVA) that TEVA's patent on Copaxone is valid until May 2014. Yet in July 2013 the New York District Court ruled that MYLAN LABORATORIES did not breach TEVA's 4 patens of Copaxone (of the 9 existing patents). In the UK the court ruled that MYLAN did breach the patents, and cannot market a generic version.
Facing drop in sales and profits in that aspect (which caused share price to lose some 20%), TEVA announced on the embarking of a unprecedented streamlining program, in which it will scale down oversized parts of the company, including the massive lay-off scheme globally, while growing its generics business and core R&D programs – including high-value complex generics, expanding its presence in emerging markets and broadening its portfolio, especially in its specialty medicines and OTC businesses. TEVA expects to realize approximately US$2 billion in annual cost savings by the end of 2017, half of which by end of 2014.
TEVA reported in October 2013 that it will reduce its global workforce by approximately 10% (some 5,000 employees), and will complete the majority of the reduction by the end of 2014. In this aspect, TEVA faces local public rage, given the large tax relieves it receives from the government, seen by many as exaggerated in first place, claiming relieves are related to benefits to the local market, including hiring employees. As a result, TEVA has been freezing most of the local dismissals.
In October 2013 Teva Tech Plant's (subject) employees (some 1,100) called on unlimited strike due to a/m re-organization plan, as well as new salary agreements. Negotiations are ongoing, currently the work is continuing (though employees have rights, based on labor union rules, to start actual strike).
In October 2013, subject's (as well as TEVA's President and General Manager) Dr. Jeremy Levin resigned his position, due to continuous disagreements between him and TEVA's Board. Eyal Desheh TEVA's CFO, was appointed TEVA's (and subject's) Acting President and General Manager.
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 some11% 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 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 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.
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 December 2012 it was reported that TEVA is establishing a joint venture in South Korea with HANDOK (in which subject will hold 51%), to enter the South Korean market, valued at US$ 14 billion.
Sales for exports of pharmaceuticals in 2012 reached US$ 6,847 million, representing close to 6% decrease from 2011 (after 10% and 41.5% increase in 2011 and 2010 from the previous years, respectively).
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.
Good for trade engagements and for all credits.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.99 |
|
UK Pound |
1 |
Rs.101.37 |
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Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
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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 |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
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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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.