|
Report Date : |
19.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
TEVA PHARMACEUTICAL INDUSTRIES LTD. |
|
|
|
|
Formerly Known As : |
TEVA MIDDLE EAST PHARMACEUTICAL AND CHEMICAL WORKS LTD. |
|
|
|
|
Registered Office : |
P.O. Box 3190 5 Basel Street Kiryat Arie Industrial Zone Petach Tikva 4951033 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
26.4.1935 |
|
|
|
|
Legal Form : |
Public Limited Liability Company |
|
|
|
|
Line of Business : |
Developers, manufacturers, marketers and exporters of generic drugs as well as innovative and specialty pharmaceuticals and active pharmaceutical ingredients (APIs) worldwide. Via subsidiaries also imports and markets locally drugs, healthcare products, medical equipment and Clinical Nutrition products. |
|
|
|
|
No. of Employees : |
7,397 |
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 : |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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. 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 |
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
P.O. Box 3190
5 Basel Street
Kiryat Arie
Industrial Zone
PETACH TIKVA-4951033-ISRAEL
Originally founded in Jerusalem in 1901 as a drug distribution agency,
under the name SALOMON, LEVIN AND ELSTEIN LTD.
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 13.02.1944, under the present
name.
Since 1976 the company is a merger of the following companies:
1. TEVA LTD.,
2. ASSIA LABORATORIES LTD.,
3. ZORI ISRAEL MEDICINAL PLANTS LTD.
At later dates
published a prospectus offering its shares to the public both in Israel and the
U.S.A.
Authorized share
capital NIS 250,000,000.00, divided into -
2,500,000,000 ordinary shares
of NIS 0.10 each,
of which
943,619,967 shares amounting to NIS 94,361,996.7 were issued.
1. Wellington
Management Company, LLP, 6.1%, a American investment company,
2. Dr.
Philip Frost, 1.54%,
3. Shares
are also traded on the Tel Aviv Stock Exchange, the New York Stock Exchange
(NYSE:TEVA), as well as on Seaq International in London, the Frankfurt and
Berlin Stock Exchanges.
The Public holds some 92% of
subject’s issued shares.
1. Dr. Phillip Frost, Chairman,
2. Prof. Moshe Many, Vice
Chairman,
3. Roger Abravanel,
4. Dr. Arie Belldegrun,
5. Amir Elstein,
6. Chaim Hurvitz,
7. Prof. Roger Kornberg,
8. Prof. Richard A. Lerner,
9. Ms. Galia Maor,
10. Joseph Nitzani,
11. Prof. Yitzhak Peterburg,
12. Dan Propper,
13. Prof. Dafna Schwartz,
14. Ory Slonim,
15. Dan S. Suesskind,
16. Erez Vigodman,
Dr. Jeremy Levin.
Developers, manufacturers,
marketers and exporters of generic drugs as well as innovative and specialty
pharmaceuticals 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, immuno-suppressants, 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.
Having global product portfolio of more than 1,300 molecules.
91% of sales are
from pharmaceutical products (51% from generic medicine, of which 3.9% from API
products).
Over 96% of sales
are for export, with a direct presence in about 65 countries.
In 2012: 51.4% of total
sales are to USA, 27.9% to Europe and 20.7% to the rest of the world (including
Israel).
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
corporate Headquarters and R&D facility (mostly leased), on an area of
27,000 sq. meters, in 5 Basel Street, from additional offices in 21 Yegia
Kapaim Street, both in Kiryat Arie Industrial Zone, Petach Tikva, and from:
1.
Owned plants & Labs & offices (3 sites, on
a leased plot) on an area of 47,936 sq. meters in 2 Hamarpe Street, the Science
Based Industries Campus, Har Hotzvim, Jerusalem.
2.
Plants & Labs (mostly owned) in Kfar Sava (64
Hashikma Street), Netanya (2 API sites, incl. Logistics), Ashdod and Ramat
Hovav (very large API & plant and R&D), serving subject and its
subsidiaries; logistic center in 1 Hate'ena
Street, Hevel Modiin Industrial Park (near Shoham), on an owned area of 50,000
sq. meters.
3. A
network of subsidiaries primarily located in North America, Europe, Latin
America and Asia. TEVA has direct operations in approximately in some 60
countries, including 52 finished dosage pharmaceutical manufacturing sites in
25 countries, 17 pharmaceutical R&D centers and 21 API manufacturing sites.
There are 45,948
employees, of which 7,397 employees in Israel (had 39,660 employees in 2011,
rose mainly due to CEPHALON acquisition).
According to a report from August 2012,
subject laid off some 1,000 employees in Europe.
Subject and several of its subsidiaries are “Approved Enterprises” and
as such enjoys tax benefits and State incentives.
In May 2013 subject reported it will pay taxes
in the amount of NIS 336 million to the Israeli Tax Authorities following the
amendment of the law for the Encouragement of Capital Investments.
In July 2013 it was reported that subject received a total of some NIS
12 billion tax incentives between 2006-2011. Subject insists all tax benefits
it got are part of government's approval, on background of local public debate
on the matter.
In January 2011 subejct
announced on an early redemption of bond (issued in 2006) in sum of US$ 813
million, and in December 2011 on the acquisition of its shares in volume of US$
3 billion.
Subject also announced it has entered into a
new three-year, US$1.5 billion unsecured revolving credit facility, which
replaces and expands existing credit lines at terms that are more favorable to
them.
In March 2011 subject raised US$ 750 million offering bonds on the
NASDAQ.
In June 2011 subject reported it completed a fully committed credit
facilities support totaling US$4 billion for the US$6.8 billion acquisition of
CEPHALON.
In July 2011 it was reported that subject received a US$ 1 billion
credit line from Japanese banks for the acquisition of TAIYO.
In April 2012 subject raised US$ 2.9 billion via bond issuing and bank
loans.
In December 2012 subject raised bonds in volume of US$ 2 billion.
Consolidated B/S shows:
US$
(millions)
31.03.2013 31.12.2012
ASSETS
Current assets
Cash and cash equivalents 1,394 2,879
Accounts receivable 5,416 5,572
Inventories 5,385 5,502
Prepaid expensed and other
current assets 2,221 2,402
14,416 16,355
Property, plant & equipment (net) 6,291 6,315
Identifiable intangible assets (net) 7,331 7,745
Goodwill 18,646 18,856
Other assets 1,385 1,338
48,069 50,609
====== ======
LIABILITIES
Current liabilities 12,356 12,888
Long-term liabilities 12,899 14,854
Equity 22,814 22,867
48,069 50,609
====== ======
Current market value US$ 36,186.4 million.
There are no
charges registered on the company’s assets.
REVENUES
Consolidated
Statement of Income
US$
(millions)
Year
ended 31.12
2010 2011 2012
Sales 16,121 18,312 20,317
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
====== ====== ======
Consolidated first quarter of 2013 sales were US$
4,901 million (4% decrease compared to 1stQ 2012), making a gross
profit of US$ 2,590 million, an operating income of US$ 874 million and a net
income of US$ 626 million.
Principal operating subsidiaries are (all 100% stake unless otherwise
stated):
TEVA
PHARMACEUTICALS USA, INC.,
IVAX INTERNATIONAL B.V., Holland, and IVAX
PHARMACEUTICAL IRELAND,
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 (both operating under TEVA SEIYAKU)
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%,
TEVA PHARMACEUTICALS EUROPE B.V
TEVA ITALIA S.R.L.
TEVA CANADA LIMITED
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.
PLANTEX LTD., developers, manufacturers and
marketers of raw materials for generic medicine, part of API Division.
ASSIA CHEMICAL INDUSTRIES LTD., developers, manufacturers,
exporters and marketers of Active Pharmaceutical Ingredients (API) and fine
chemicals and raw materials for the pharmaceutical industry.
TEVA
MEDICAL LTD., manufacturers, importers,
marketers of medical equipment, specializing in dialysis systems and solutions.
ABIC LTD.,
developers, manufacturers, exporters and marketers of pharmaceutical & fine
chemicals.
CLAL BIOTECHNOLOGY
INDUSTRIES LTD., 14%, publicly traded on TASE.
Bank Leumi Le’Israel
Ltd., Tel Aviv 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 Center Branch (No 461), Tel Aviv.
In July 2012 the
SEC opened an investigation in suspicion of corruption acts allegedly subject
was involved in Latin America (which is as part of a broader check against drug
companies).
Apart from that
(and several pending commercial lawsuits, none of which is of significance),
nothing unfavorable learned
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 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 subject has a 25% market share in the pharmaceutical field. TEVA is the
largest non-governmental supplier of healthcare products and services in
Israel.
Subsidiary
NOVOPHARM, now TEVA CANADA (acquired in 2000 for US$ 262 million in shares
deal), is the second largest generic manufacturer in Canada.
Subject's first brand-name
drug Copaxone for multiple sclerosis remains its biggest source of sales and
profit (approximetly 19.7% of sales in 2012). Subject may face generic
competition prior to 2014 on Copaxone.
In 1996 subject acquired American BIOCRAFT
for US$ 289 million and in 1999 COPELY of the USA, for US$ 220 million.
In April 2002 subject acquired BAYER
CLASSICS, a subsidiary of BAYER of Germany (today TEVA CLASSICS), paying a sum
of €97 million.
In 2002 subject
acquired HPFC (HONEYWELL PHARMACEUTICAL FINE CHEMICALS), the raw material for
medicines Div. of HONEYWELL in Italy, for US$ 90 million.
In 2003 subject
acquired SICOR, developers of API products and generic pharmaceuticals, for US$
3.4 billion, in cash and in shares.
In 2004 subject
paid €70 million for DORUM of Italy, PFIZER's generic arm.
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.
In 2007 subject introduced
its 2nd proprietary branded product (after the Copaxone), the
Azilect - for treatment for Parkinson's Disease (PD).
In
January 2008, subject signed a cooperation agreement with Bel
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.
As part of TEVA's
expansion strategy in Europe, it reported in March 2008 on investing close to
US$ 100 million in manufacturing facility in Hungary, US$
In July 2008 TEVA
completed the acquisition of BENTLEY PHARMACEUTICALS of Spain, generic drugs
manufacturers, for US$ 360 million (in cash).
In February 2009,
subject completed the sale of its veterinary business unit in Israel, which is
strategically no longer part of its core activities, in consideration of US$ 47
million, to PHIBRO ANIMAL HEALTH CORP.
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 the world's 4th largest generic drug
company BARR PHARMACEUTICALS, INC. (established 1970), 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 geographic
expansion, as well as its penetration into the women
health field with its emergency contraception drug.
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 December 2009 subject
announced it will invest US$ 60 million in ONCOGENEX PHARMASEUTICALS, of Canada
which develops drugs to enhance that efficiancy of Chimotherapy. Subject will
further invest upto US$ 370 million according to milestones.
In December 2009 it was
reported that subject acquired control of TAISHO, of Japan for several tens US$
millions, and several tens US$ millions for TAISHO's debts. Deal will be
carried out by subject's partnership in Japan TEVA KOWA.
In August 2010,
TEVA completed the acquisition of RATIOPHARM, Germany's second largest generics
producer for the sum of US$4.95 billion (€3.625 billion). Subject raised US$
2.5 billion for the deal finance (3 bonds series). 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
subject acquired CORPORACION INFARMASA of Peru (estimated at US$ 300 million).
The acquired company is to join TEVA’s Peruvian company MEDCO CORP., becoming
Peru’s 2nd largest pharmaceutical firm.
In
January 2011 subject completed the acquisition of THÉRAMEX, MERCK KGaA's European based
women's health business, for € 265 million.
In March 2011
subject announced a joint venture with PROCTER & GAMBEL to sell OTC drugs.
Subject strenghthened its
position in the German market, with the winning in March 2011 the largest
portion in AOK (Germany’s largest health care fund) tender for medicines
purchase, in value of tens of € millions p/year.
In May 2011
subject announced it is acquiring 57% of TAIYO (Japan's 3rd largest
pharmaceutical company) for US$ 460 million. This will turn TEVA into Japan’s 2nd
larges generic company, in a market valued US$ 6 billion per annum and in July
2011 reached full ownership. Japanese operations are mainly under one company
TEVA SEIYAKU.
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 July 2011 subject reported that it is
entering the local milk substitute (for babies) market, which is valued at NIS
500 million annually.
In August 2011 it
was reported that S.L.E. won the tender of C.T.S. LTD. (one of the leading
pharmaceuticals groups in the local market) to manage its storage, logistics
and distribution needs (using a/m TEVA Group's logistic center). Tender is
valued at NIS 500 million.
In August 2011 it was reported that subject
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 September 2011
it was reported subject 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
subject 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 June 2012 the Manhattan Federal Court
ruled in favor of subject, ruling that subject's patent on Copaxone (its
flagship drug, US$ 3.57 billion sales in 2011) is until May 2014, and no
generic drug can be marketed until then. Yet in July 2013 the New York District
Court ruled that MYLAN LABORATORIES did not breach subject'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.
In September 2012 Subject reported that it
signed an agreement with BAYER HEALTHCARE, according to which BAYER will
acquire subject's U.S. animal health business, for US$ 145 million. The
transaction, encompassing a manufacturing site in St. Joseph, Missouri and
around 300 employees, is expected to close in 2013.
In October 2012 subject launched a syringe
plant in Hungary, investing US$ 110 million.
In December 2012 it was reported that
subject 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.
In June 2013 subject completed the
acquisition of MICRODOSE THERAPEUTICS (dealing in respiratory products) for US$
40 million (which can increase up to US$ 165 million according to milestones).
Good for trade engagements and all credits.
Note: Since February 2013 Israel Post has
started using a new area code method of 7 digits (the old method of 5 digits is
no longer valid).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.