MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	UNION QUIMICO FARMACEUTICA SA
Registered Office :	Mallorca, 262 Barcelona, 08008
Country :	Spain
Financials (as on) :	31.12.2011
Date of Incorporation :	1966
Com. Reg. No.:	A08036774
Legal Form :	Public Subsidiary
Line of Business :	Manufacture of basic pharmaceutical products
No. of Employees :	277

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, 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Spain	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

spain - ECONOMIC OVERVIEW

After almost 15 years of above average GDP growth, the Spanish economy began to slow in late 2007 and entered into a recession in the second quarter of 2008. GDP contracted by 3.7% in 2009, ending a 16-year growth trend, and by another 0.3% in 2010; GDP expanded 0.4% in 2011, before contracting 1.4% in 2012. The economy has once again fallen into recession as deleveraging in the private sector, fiscal consolidation, and continued high unemployment weigh on domestic demand and investment, even as exports have shown signs of resiliency. The unemployment rate rose from a low of about 8% in 2007 to 26.0% in 2012. The economic downturn has also hurt Spain's public finances. The government budget deficit peaked at 11.2% of GDP in 2010 and the process to reduce this imbalance has been slow despite the central government's efforts to raise new tax revenue and cut spending. Spain reduced its budget deficit to 9.4% of GDP in 2011, and roughly 7.4% of GDP in 2012, above the 6.3% target negotiated between Spain and the EU. Although Spain''s large budget deficit and poor economic growth prospects remain a source of concern for foreign investors, the government''s ongoing efforts to cut spending and introduce flexibility into the labor markets are intended to assuage these concerns. The government is also taking steps to shore up the banking system, namely by using up to $130 billion in EU funds to recapitalize struggling banks exposed to the collapsed domestic construction and real estate sectors.

Source : CIA

Company name and address

UNION QUIMICO FARMACEUTICA SA

Mallorca, 262

Barcelona, 08008

Spain

Tel:	+(34) 932153148
Fax:	+(34) 934880491
www.uquifa.com

Employees:	277
Company Type:	Public Subsidiary
Corporate Family:	5 Companies
Ultimate Parent:	Vivimed Labs Ltd
Incorporation Date:	1966
Auditor:	Deloitte S.L.

Financials in:	USD (In Millions)
Fiscal Year End:	16-Aug-2012
Reporting Currency:	Euro
Annual Sales:	72.5 ^1
Net Income:	4.4
Total Assets:	49.2

Business Description

Uquifa is a chemical process and advanced pharmaceutical manufacturing company, based in Spain. The company is an API (Active Pharmaceutical Ingredients) division of Vivimed Labs, an India base chemical group. Uquifac was acquired by Vivimed Labs in December 2011. Prior to the acquisition, Uquifa was a pharmaceutical division of Yule Catto plc, and UK-based chemical company. The company manufactures Active Pharmaceutical Ingredients (APIs) and intermediates for the pharmaceutical industry. The company offers custom synthesis and contract manufacturing services, including scale-up from laboratory to pilot plant, development of novel synthetic routes, optimizing laboratory developed routes of synthesis, scale-up from pilot plant to commercial and transfer of commercial scale processes. The company also produces antibiotics, bulk pharmaceuticals, inorganic salts and bulk veterinary drugs. Geographically, Uquifa has presence in Mexico, US, Italy, and Spain. Uquifa is headquartered in Barcelona, Spain.

Industry

Industry	Pharmaceutical Manufacturing
ANZSIC 2006:	1841 - Human Pharmaceutical and Medicinal Product Manufacturing
ISIC Rev 4:	2100 - Manufacture of pharmaceuticals, medicinal chemical and botanical products
NACE Rev 2:	2110 - Manufacture of basic pharmaceutical products
NAICS 2012:	325411 - Medicinal and Botanical Manufacturing
UK SIC 2007:	2110 - Manufacture of basic pharmaceutical products
US SIC 1987:	2833 - Medicinal Chemicals and Botanical Products

Key Executives

Name	Title
Mark Ian Robbins	CEO
Santosh Varalwar	President, Member Of The Board
Alistair Swanson	Director-Sales & Marketing
Jose Luis Alsina Alvarez	Non Consellor Assistant Secretary
Roberto Asensio	Area Manager

Registered No.(ESP): A08036774

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7620804
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.8140165

Corporate Overview

Location
Mallorca, 262
Barcelona, 08008
Spain

Tel:	+(34) 932153148
Fax:	+(34) 934880491

www.uquifa.com

Sales EUR(mil):	55.3
Assets EUR(mil):	40.1
Employees:	277
Fiscal Year End:	16-Aug-2012

Industry:

Biotechnology and Drugs

Incorporation Date:	1966
Company Type:	Public Subsidiary
Quoted Status:	Not Quoted
Registered No.(ESP):	A08036774

CEO:	Mark Ian Robbins

Industry Codes

ANZSIC 2006 Codes:
1841	-	Human Pharmaceutical and Medicinal Product Manufacturing

ISIC Rev 4 Codes:
2100	-	Manufacture of pharmaceuticals, medicinal chemical and botanical products

NACE Rev 2 Codes:
2110	-	Manufacture of basic pharmaceutical products
2120	-	Manufacture of pharmaceutical preparations

NAICS 2012 Codes:
325411	-	Medicinal and Botanical Manufacturing
325412	-	Pharmaceutical Preparation Manufacturing

US SIC 1987:
2833	-	Medicinal Chemicals and Botanical Products
2834	-	Pharmaceutical Preparations

UK SIC 2007:
2110	-	Manufacture of basic pharmaceutical products
2120	-	Manufacture of pharmaceutical preparations

Business Description

Manufacture of basic pharmaceutical products

More Business Descriptions

Manufacture of pharmaceutical preparations for human and veterinary use

Pharmaceutical Chemicals Mfr

UQUIFA (Uquifa) is a pharmaceutical company, based in Spain. Uquifa manufactures Active Pharmaceutical Ingredients (APIs) and intermediaries for the pharmaceutical industry. The company develops and manufactures complex chemical processes and advanced pharmaceuticals. The company operates three manufacturing sites, one in Mexico and two in Spain. All these sites are operated under cGMP conditions and inspected by regulatory authorities, including the US FDA, and major pharmaceutical companies. Uquifa markets its products to over 70 countries worldwide and has filed more than 150 active Drug Master Files (DMFs) and 20 are COS approved. The company’s major active pharmaceutical ingredients include bulk pharmaceuticals, antibodies, inorganic salt, and bulk veterinary. Some of the dossiers developed by Uquifa include terbinafine HCL, zolpidem tartrate, pantoprazol sesquihydrate, and levofloxacine. The company developed DMF’s/CTD’s for advanced intermediates and for the final APIs. Currently, UQUIFA has filed 40 Type II DMFs with the FDA and more than 150 active DMF’s worldwide. The various products marketed by the company include Bicalutamide, Lamotrigine, Lansoprazol, Levofloxacine, Meloxicam, Modafinil, Pantoprazol, Quetiapine, Rabeprazole, and Terbinafine, Venlafaxine, and Zolpidem products. Bicalutamide is an oral non-steroidal anti-androgen for prostate cancer, which is supplied in 50 mg and 150 mg tablets. Lamotrigine is an antiepileptic drug of the phenyltriazine class and is available in over 60 countries. Its patent too has expired in Mexico, Spain, US and several European countries. Pantoprazole is a proton pump inhibitor (PPI), which is the only intravenous and tablet available PPI. The patent for the product expired in Mexico and the US in 2005, while it expired in Europe during 2009. Quetiapine is an antipsychotic drug and is supplied for oral administration while Rabeprazole is used for short-term healing of a gradual breakdown and is supplied for oral administration as 20mg delayed-release tablets. Terbinafine is an antifungal and is marketed worldwide along with Mexico. Its patent has expired in some of the countries from Europe and US regions. Venlafaxine is an antidepressant, which is a derivate of phenyl ethyl amine and is available in 75 and 150 mg slow release capsules, and 37.5, 50 and 75 mg tablets. Zolpidem is a hypnotic and tranquillizer available as 5 mg and 10 mg tablets. The product’s patent has expired in the US, and some of European countries. The company offers speciality services in the areas of ozonolysis, sulphur chemistry, chlorination, molecular distillation, and micronization. In addition, it also offers services in the areas of hydrogenation, nitration and cryogenic reactions. The major services offered to pharmaceutical industry includes development of novel synthetic routes and optimization of existing laboratory processes, scale-up from laboratory to pilot plant, scale-up from pilot plant to commercial, transformation of commercial scale processes and optimization of laboratory developed routes of synthesis to reduce isolation steps, improve yield, reduce batch production time and eliminate the use of toxic and/or dangerous reagents.The company conducts research and development (R&D) activity with a group of 40 researchers. The group's main focus is on the discovery and development of chemical processes suitable for the efficient manufacture of APIs and key intermediates. The company's R&D Laboratory is in Sant Celoni. The 800 square meters laboratory include the Synthesis and Analytical development laboratories, with 20 fume hoods (3 walk in), a kilo lab and a library. The synthesis laboratory equipment includes several hydrogenators of different sizes, a freeze drier, liquid-liquid extraction columns and a molecular distiller. The objective of the analytical division of R&D is to develop and validate new analytical methods working in parallel with synthetic development team, to offer analytical support on pilot plant processes, to provide stability testing on finished products and related intermediates.On 2011, Vivimed Labs – a chemical group based in India, acquired Uquifa. This includes the facilities located in Spain and Mexico. In 2012, Uquifa SA announced the creation of QSynth SA as a commercial subsidiary to improve the services for the CMO business to the Pharmaceutical Industry.

Uquifa is a chemical process and advanced pharmaceutical manufacturing company, based in Spain. The company is an API (Active Pharmaceutical Ingredients) division of Vivimed Labs, an India base chemical group. Uquifac was acquired by Vivimed Labs in December 2011. Prior to the acquisition, Uquifa was a pharmaceutical division of Yule Catto plc, and UK-based chemical company. The company manufactures Active Pharmaceutical Ingredients (APIs) and intermediates for the pharmaceutical industry. The company offers custom synthesis and contract manufacturing services, including scale-up from laboratory to pilot plant, development of novel synthetic routes, optimizing laboratory developed routes of synthesis, scale-up from pilot plant to commercial and transfer of commercial scale processes. The company also produces antibiotics, bulk pharmaceuticals, inorganic salts and bulk veterinary drugs. Geographically, Uquifa has presence in Mexico, US, Italy, and Spain. Uquifa is headquartered in Barcelona, Spain.

Pharmaceutical and Medicine Manufacturing

Financial Data

Financials in:	EUR(mil)
Revenue:	55.3
Net Income:	3.4
Assets:	40.1
Current Assets:	26.3
Fixed Assets:	13.8
Long Term Debt:	1.3
Total Liabilities:	40.1
Issued Capital:	3.1
Net Worth:	24.5
Date of Financial Data:	16-Aug-2012

1 Year Growth

1.2%

NA

NA

Key Corporate Relationships

Auditor:	Deloitte S.L.
Bank:	Banco Bilbao Vizcaya Argentaria, S.A.
Auditor:	Deloitte S.L.

Corporate Family

Corporate Structure News:

Total Corporate Family Members: 5

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Vivimed Labs Ltd	Parent	Hyderabad	India	Basic Chemical Manufacturing	140.1	1,060
Union Quimico Farmaceutica Sa	Subsidiary	Barcelona	Spain	Pharmaceutical Manufacturing	72.5	277
Uquifa Mexico S.A. de C.V.	Subsidiary	Jiutepec, Morelos	Mexico	Pharmaceutical Manufacturing
Vivimed Labs Europe Ltd	Subsidiary	Huddersfield	United Kingdom	Basic Chemical Manufacturing	19.4	22
Klar Sehen Private Limited	Subsidiary	Kolkata, West Bengal	India	Pharmaceutical Manufacturing	4.3

Competitors Report

CompanyName	Location	Employees	Ownership
Astellas Pharma Europe Ltd.	Chertsey, United Kingdom	232	Private
Corporacion Medichem Sl	Sant Joan Despi, Barcelona, Spain	37	Private
Sanofi SA	Paris, France	111,974	Public
Teva Pharmaceutical Industries Limited	Petah Tikva, Israel	45,948	Public

Executives Report

Board of Directors

Name	Title	Function
Arthur Harnett John	Member Of The Board	Director/Board Member
John Peagram Michael	Member Of The Board	Director/Board Member
Vasudeva Subramayan Vishar	Member Of The Board	Director/Board Member
Santosh Varalwar	President, Member Of The Board	Director/Board Member
Sandeep Varalwar	Member Of The Board	Director/Board Member

Executives

Name	Title	Function
Mark Ian Robbins	CEO	Chief Executive Officer
Biography: Mr. Robbins is the chief executive officer in UQUIFA since 1990. He has vast experience and has served various chemical and pharmaceutical companies.
Santosh Varalwar	President, Member Of The Board	President
Jose Luis Alsina Alvarez	Non Consellor Assistant Secretary	Administration Executive
Mercedes Murio Pujol	Non Consellor Secretary	Administration Executive
Alistair Swanson	Director-Sales & Marketing	Sales Executive
Biography: Mr. Alistair Swanson is the sales and marketing director in Uquifa since 1999. He has managing experience in Exxon Chemicals since early eighties.
Spain Sl Vivimed Labs	Single Partner	Partner
Roberto Asensio	Area Manager	Other
Pilar Hijos	Area Manager	Other

Annual Profit & Loss

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.71919	0.755078	0.719047
Consolidated	No	No	No
Charges	76.5	69.6	67.1
Stock Reduction	-	-	0.0
Supplies	36.7	33.3	30.6
Consumption of Raw Materials	33.7	30.3	30.2
Miscellaneous External Expenditures	3.0	3.0	0.4
Staff Costs	17.6	15.9	15.7
Wages and Salaries	13.6	12.6	12.4
Social Security Costs	4.0	3.3	3.3
Depreciation	4.2	4.6	5.7
Allowance for Trade Operations	0.5	0.2	0.1
Stock Provision Variation	0.5	0.2	0.0
Losses from Unrecovered Receivables	0.1	0.0	0.1
Other Operating Charges	15.4	14.2	14.1
External Services	14.8	13.6	13.5
Taxes	0.6	0.5	0.6
Other Operating Expenses	0.0	0.1	-
Operating Benefits	6.2	5.4	3.5
Financials and Similar Charges	0.1	0.2	0.2
Due to Liabilities With Group Companies	-	0.1	0.1
Due to Other Liabilities	0.1	0.1	0.1
Changes in Financial Investment Provisions	0.2	0.0	0.1
Exchange Losses	-	0.4	-
Net Financial Income	0.1	-	0.2
Profit From Ordinary Activities	6.3	5.4	3.7
Extraordinary Profit	0.0	0.0	0.0
Profit Before Taxes	6.3	5.4	3.7
Corporation Tax	1.6	0.8	0.6
Financial Year Result (Profit)	4.7	4.6	3.1
Income	81.2	74.2	70.2
Net Total Sales	76.8	72.3	69.6
Sales	76.7	72.2	69.5
Rendering of Services	0.2	0.1	0.1
Increase in Stocks	3.7	0.5	-
Miscellaneous Operating Income	0.2	0.8	0.1
Auxiliary Income From Current Management	0.2	0.7	0.0
Grants	0.0	0.1	0.1
Income From Equity Investment	0.2	0.4	0.4
In Group Companies	0.2	0.4	0.4
Third Parties	0.0	0.0	0.0
Income From Miscellaneous Interests	-	0.2	-
Profit on Financial Investment	-	0.2	-
Gains from Exchange Rate	0.2	-	0.2
Negative Financial Results	-	0.0	-
Capital Grants Transferred to Profit and Loss	0.0	0.0	0.0

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.770327	0.745406	0.696986
Consolidated	No	No	No
Software	0.2	0.1	0.2
Total Intangible Fixed Assets	0.2	0.1	0.2
Land and Construction	7.4	7.2	7.9
Technical Installations and Machinery	4.7	4.1	5.8
Other Installations, Tools, and Furniture	4.5	3.9	5.6
Tangible Fixed Assets Under Construction	0.8	1.7	0.6
Other Tangible Assets	0.3	0.3	0.4
Total Tangible Fixed Assets	17.6	17.2	20.3
Investments in Group Companies	0.1	0.1	0.0
Receivables from Group Companies	-	11.1	9.0
Long-Term Securities Portfolio	0.0	0.0	0.0
Long-Term Guarantees and Deposits	0.0	0.0	0.0
Financial Investments	0.1	11.3	9.1
Total Fixed Assets	17.9	28.6	29.6
Raw Materials and Other Consumables	2.6	3.3	2.8
Goods in Process	4.3	3.0	3.3
Finished Products	8.4	7.0	6.9
Total Stocks	15.3	13.3	13.0
Trade Debtors	14.0	17.3	17.5
Receivables, Group Companies	0.1	0.2	0.4
Other Debtors	0.0	0.0	0.0
Staff	0.0	0.0	-
Public Bodies	2.2	1.8	1.6
Total Debtors	16.5	19.4	19.6
Receivables from Group Companies	-	-	10.0
Short-Term Guarantees and Deposits	0.0	0.0	0.0
Total Short-Term Investments	0.0	0.0	10.1
Cash	2.1	3.4	1.6
Prepayments and Accrued Income	0.2	0.5	0.4
Total Current Assets	34.1	36.6	44.7
Total Assets	52.0	65.2	74.3
Revaluation Reserves	0.9	1.4	1.8
Legal Reserve	0.8	0.8	0.9
Statutory Reserves	0.0	0.0	0.0
Miscellaneous Reserves	15.9	24.0	29.5
Total Reserves	16.7	24.8	30.3
Profit or Loss for the Financial Year	4.4	4.6	3.2
Total Equity	31.8	41.0	46.2
Capital Grants	0.1	0.1	-
Total Deferred Income	0.1	0.1	-
Other Provisions	0.0	0.0	0.0
Total Provisions for Liabilities and Charges	0.0	0.0	0.0
Loans and Other Liabilities	-	-	2.0
Total Amounts Owed to Credit Institutions	-	-	2.0
Amounts Owed to Group Companies	-	-	5.0
Total Debts with Group or Affiliated Companies	-	-	5.0
Other Creditors	0.5	0.5	0.0
Long-Term Payables to Public Bodies	1.2	-	-
Total Other Creditors	1.7	0.5	0.0
Total Long Term Liabilities	1.7	0.5	7.1
Loans and Other Liabilities	1.8	3.4	3.3
Total Amounts Owed to Credit Institutions	1.8	3.4	3.3
Amounts Owed to Group Companies	0.1	2.1	1.3
Total Short-Term Amounts Owed to Group and Associa	0.1	2.1	1.3
Amounts Owed for Purchases of Goods or Services	11.7	14.3	13.7
Total Trade Creditors	11.7	14.3	13.7
Public Bodies	1.8	1.3	0.8
Miscellaneous Debts	0.4	0.0	0.0
Wages and Salaries Payable	2.2	2.2	1.7
Total Other Creditors	4.3	3.6	2.5
Prepayments and Accrued Income	0.0	0.1	0.1
Total Short Term Creditors	18.0	23.5	21.0
Short Term Provisions for Liabilities and Charges	0.4	-	-
Total Liabilities and Equity	52.0	65.2	74.3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.99.45
Euro	1	Rs.83.92

INFORMATION DETAILS

Report Prepared by :

SDA

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.