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Report Date : |
31.05.2013 |
IDENTIFICATION DETAILS
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Name : |
DEXXON LTD. |
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Formerly Known As : |
DISCO LTD. |
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Registered Office : |
1 Dexcel Street Industrial Zone Or Akiva 3060000 |
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Country : |
Israel |
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Date of Incorporation : |
16.03.1964. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject Group
Engaged in Research & development, manufacturing, export and marketing of
generic pharmaceuticals. |
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No. of Employees : |
1,000 employees serving DEXXON Group worldwide |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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) |
|
Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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
DEXXON LTD.
Telephone 972
4 636 40 00
Fax 972
4 636 40 04
1 Dexcel Street
Industrial Zone
OR AKIVA 3060000 ISRAEL
A private limited company, incorporated as per file No. 51-042699-2 on the
16.03.1964.
Originally registered under the name of DISCO LTD., which changed to the
present one on the 21.07.1982.
Authorized share capital NIS 2,000,000.00, divided into -
1,999,000
ordinary "A" shares (1,219,900 shares issued),
1,000 ordinary shares (100 shares issued),
all of NIS 1.00 each,
of which shares amounting to NIS 1,220,000.00 were issued.
1. DEXXON HOLDINGS LTD., owned by
Dan Oren,
2. DISCOTRADE LTD., (a subsidiary)
holding one single share.
1. Dan
Oren,General Manager,
2. Ilan
Oren,
3. Avraham
Dov,
4. Uri
Oern.
Subject heads the DEXXON Group, engaged in:
1) Research
& development, manufacturing, export and marketing of generic
pharmaceuticals,
2) Foreign
manufacturers’ representation, import, distribution and marketing of
pharmaceuticals.
Some 85% of Group’s sales are for export to some 20 countries.
DEXXON Group markets over 60 products in more than 150 dosages, principally
in solid oral dosage form.
Sales are to all local health funds, hospitals, drug wholesalers, drugstore
chains and pharmacies, distributors and government agencies.
Via its subsidiary DEXXON Group manufactures drugs for SUPER PHARM,
Israel’s largest drugstore chain.
Sole local representatives of (among others):
BRACCO, of Italy,
CHINOIN, of Hungary,
SCHOLL, of UK,
KYOWA MAKKO, of Japan,
LEO PHARMACEUTICALS, of Denmark.
Among Group’s local suppliers: YES PHARMA, HUBERMAN & SONS, MOGAL
E.T.C., A. ADIRAN, I.S.I. SCIENTIFIC INSTRUMENTS, BERLIN TECHNOLOGIES, HELION,
ZIFRONI CHEMICAL SUPPLIERS, MICHAEL CHEMICALS, OROKIA ISRAEL, etc.
Advertising offices: GIL-AD COMMUNICATIONS (of G Group).
Among suppliers/
service providers: JCDecaux (outdoor advertising).
Operating from owned premises (headquarters, 2 manufacturing facilities,
warehouses), on total area of 34,000 sq. meters, in Southern Industrial Zone 1,
Or Akiva. The Group also operates from large facilities in Yoqneam (18,800 sq. meters) and a plant, on an area of 15,000 sq. meters, in 7 Hamarpe Street, Har
Hotzvim Industrial Zone, Jerusalem.
Also operating from 19 countries, main branches in Germany, UK and USA.
Having some 1,000 employees serving DEXXON Group worldwide, most in Israel.
Financial data not forthcoming, however known to be financially solid.
In November 2007, it was reported that subject is submitting an application
to the IIC for the erection of a new pharmaceutics plant with investment of NIS
100 million. In addition, Group’s plant will be expanded to meet the growing
demand.
Subsidiaries DEXCEL LTD. and
DEXCEL PHARMA LTD. are “Approved Enterprises” and as such enjoy tax benefits
and State incentives. Subject also enjoying the Chief Scientist Office
financial support.
There is 1 charge
for the sum of US$ 20,000,000 registered on the company's assets (financial
assets), in favor of Bank Leumi Le'Israel Ltd. (charge placed February
2013).
DEXXON Group consolidated sales (reported, as officials do not cooperate):
2006 reported to exceed US$ 100,000,000, mostly for export.
2007 sales reported to be US$ 119,000,000, mostly for export.
2008 sales reported to be US$ 215,000,000, around 80% of which is for
export (thanks to jump in a drug against heartburn sale to the US market).
2009 sales reported to be circa US$ 220,000,000, around 80% for export.
2010 sales reported to be circa US$ 250,000,000, around 80% for export.
2011 sales reported to be circa NIS 900,000,000, around 80% for
export.
Later sales data not forthcoming.
DEXXON Group subsidiaries:
DEXCEL LTD., developers,
manufacturers, exporters and marketers of generic pharmaceuticals.
DEXCEL PHARMA TECHNOLGIES LTD., developers,
manufacturers, exporters and marketers of generic prescription
drugs. Fully owns DEXCEL PHARMA
LTD., 100%, U.K., DEXCEL PHARMA GMBH, 100%, Germany and DEXCEL PHARMA INC.,
100%, USA.
DEXCEL PT ISRAEL LTD.
DISCOTRADE LTD.
DEXOPAL LTD.
GADLON LTD.
DEXXON HOLDINGS LTD.
DEXXON TECHNOLOGIES 2005 LTD.
MEDIGUS LTD., 14.65%, publicly traded on the Tel Aviv Stock Exchange, a
medical device company that specializes in developing innovative endoscopic
procedures and devices for carrying out these procedures. Current market value
US$ 29.2 million.
DEXXON Group also invests in bio-tech start-ups.
According to our record, subject and the Group are working with:
Bank Hapoalim Ltd, Haifa Main Branch (No. 700), Haifa, and Central Branch
(No. 600), Tel Aviv.
Bank Leumi Le’Israel Ltd., Hamiftatz Business Branch (No. 898), Kiryat
Bialik.
Since subject's
officials refused to disclose data, we could not confirm a/m banks data.
Nothing unfavorable learned.
Subject's
officials refused to disclose any data
DEXXON/ DEXCEL Group is the 2nd largest drug supplier in Israel the local
health sector (though way behind TEVA PHARMACEUTICAL). Its drugs are well-known
and leading brands in Israel.
Subject's owner
and General Manager, Mr. Dan Oren
DEXXON plants are approved by the US FDA, the UK MHRA and the German
authorities and fully comply with current GMP.
In November 2007, DEXXON Group launched an advertising campaign for its OTC
drugs with total investment of NIS 10 million
In October 2007,
it was reported that
In August 2008, it was reported that DEXXON
doubled its sales following the launch of subject’s anti heartburn medicine “Omepradex
Z” in US markets (a generic version to P&G medicine), capturing some 40% of
the market (joint sales by subject and PERRIGO of US$ 230 million).
Mr. Dan Oren, was
quoted to say in 2008 that with the approvals of DEXXON prescribed drugs that
are on their shelves, they expect to reach annual sales of US$ 800 million by
2012. In August 2008, Oren estimated DEXXON will go public in 2010 (in 2003 DEXXON planned a public offering, but gave it up then).
In May 2009, Oren said they have now 30 different products in development,
27 of which are in phases of submission for approval in various countries.
Subject’s sales in
Germany also rocketed 650% following a win in healthcare fund tender.
Annual sales
volume in the local pharmaceuticals market is estimated at NIS 4 billion,
divided into NIS 1.8 billion to the institutional sector (HMO's, hospitals,
etc.) and NIS 1.2 billion to the private sector (including pharma retail
chains).
In 2009 sales of
drugs for human consumption (including from import) reached US$ 1,409 million
(US$ 1,416 million in 2008), of which estimated over US$ 1,100 million were
from import.
The
non-prescription drugs market in Israel is valued at 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 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.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
Note: Since the beginning of 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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.56.10 |
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|
1 |
Rs.85.13 |
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Euro |
1 |
Rs.72.80 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
|
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 |
-- |
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.