MIRA INFORM REPORT

 

 

Report Date :

04.09.2013

 

IDENTIFICATION DETAILS

 

Name :

HIKMA PHARMACEUTICALS CO PLC

 

 

Registered Office :

8th Floor, Airport Road, Bayader Wadi El Seer, Industrial Area, P O Box 182400, Amman 11118

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

15.05.1977

 

 

Com. Reg. No.:

475, Amman

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Subject is engaged in the manufacturing and marketing of pharmaceutical products, including antibiotics, cardiovascular drugs, anti-rheumatics, tranquillisers, analgesics, anti-diabetics, anti-ulcer preparations, and  a range of cough and cold preparations.

 

 

No. of Employees :

5,400

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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)

Jordan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Jordan ECONOMIC OVERVIEW

 

Jordan's economy is among the smallest in the Middle East, with insufficient supplies of water, oil, and other natural resources, underlying the government's heavy reliance on foreign assistance. Other economic challenges for the government include chronic high rates of poverty, unemployment, inflation, and a large budget deficit. Since assuming the throne in 1999, King ABDALLAH has implemented significant economic reforms, such as opening the trade regime, privatizing state-owned companies, and eliminating some fuel subsidies, which in the last decade spurred economic growth by attracting foreign investment and creating some jobs. The global economic slowdown and regional turmoil, however, have depressed Jordan''s GDP growth, impacting export-oriented sectors, construction, and tourism. In 2011 and 2012, the government approved two economic relief packages and a budgetary supplement, meant to improve the living conditions for the middle and poor classes. Jordan''s finances have also been strained by a series of natural gas pipeline attacks in Egypt, causing Jordan to substitute more expensive diesel imports, primarily from Saudi Arabia, to generate electricity. Jordan is currently exploring nuclear power generation in addition to the exploitation of abundant oil shale reserves and renewable technologies to forestall energy shortfalls. In 2012, to correct budgetary and balance of payments imbalances, Jordan entered into a $2.1 billion, multiple year International Monetary Fund Stand-By Arrangement. Jordan''s financial sector has been relatively isolated from the international financial crisis because of its limited exposure to overseas capital markets. Jordan will continue to depend heavily on foreign assistance to finance the deficit in 2013.

 

Source : CIA

 

 


SUMMARY

 

Company Name                                    : HIKMA PHARMACEUTICALS CO PLC

Also Known As                                     : HIKMA PHARMACEUTICALS INDUSTRIES

                                                              HIKMA PHARMACEUTICALS

Country of Origin                                   : Jordan

Legal Form                                           : Public Limited Company

Registration Date                                  : 15th May 1977

Commercial Registration Number           : 475, Amman

Issued Capital                                       : US$ 35,091,000

Paid up Capital                                     : US$ 35,091,000

Total Workforce                                     : 5,400

Activities                                               : Manufacture and marketing of pharmaceutical products.

Financial Condition                                : Good

Payments                                             : Prompt

Operating Trend                                    : Steady

 


COMPANY NAME

 

HIKMA PHARMACEUTICALS CO PLC

 

 

ALSO KNOWN AS

 

·         HIKMA PHARMACEUTICALS INDUSTRIES

·         HIKMA PHARMACEUTICALS

 

 

company ADDRESS

 

Registered & Physical Address

Location           : 8th Floor, Airport Road, Bayader Wadi El Seer, Industrial Area

PO Box            : 182400

Town                : Amman 11118

Country             : Jordan

 

Telephone         : (962-6) 5811692 / 5824222 / 5824223 / 5824224 / 5802900

Facsimile          : (962-6) 5817102

Email                : mrkt@hikma.com / samoh@hikma.com

 

Premises

Subject operates from a large suite of offices, a warehouse and a factory that are owned and located in the Industrial Area of Amman.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Samih T Darwazah                                                                            Managing Director

 

·       Said Samih T Darwazah                                                                    Director

 

·       Mazen Samih T Darwazah                                                                  Director

 

·       Nadim Al Hudhud                                                                             Director

 

·       Ali Al Husry                                                                                      Director

 

·       Sir David Rowe Ham                                                                         Non-Executive Director

 

·       Michael Ashton                                                                                 Non-Executive Director

 

·       Dr Ronald Goode                                                                            Non-Executive Director

 

·       Breffni Byrne                                                                                    Non-Executive Director

 

·       Bassam Kanaan                                                                               Chief Operating Officer

 

·       Mohamed Saffouri                                                                            Commercial Manager

 

·       Gabriel Kalisse                                                                                 Finance Manager

 

·       Majida Labadi                                                                                   Human Resources Manager

 

·       Dr Ibrahim Jalal                                                                                Technical Manager

 

·       Abdul Latif Omar                                                                              Engineering Manager

 

·       Nedal El Bedawi                                                                               Import & Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 15th May 1977, Production began in 1978.

 

Legal Form                  : Public Limited Company

 

Commercial Reg. No.   : 475, Amman

 

Issued Capital              : US$ 35,091,000

 

Paid up Capital            : US$ 35,091,000

 

Name of Shareholder (s)                                 Percentage

 

·       Darhold Limited                                            29.549%

 

·       Sectoral Asset Management                            3.216%

 

·       Samih T Darwazah                            ]

                                                            ]

·       Said Samih T Darwazah                    ]

                                                            ]           67.235%

·       Mazen Samih T Darwazah                  ]

                                                            ]

·       Ali Al Husry                                      ]

                                                                   ]

·       Michael Ashton                                 ]

]

·       Breffni Byrne                                    ]

]

·       Dr Ronald Goode                             ]

]

·       Sir David Rowe Ham                         ]

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Hikma Group of companies, which consists of the following concerns:

 

     Name of Company                                                                           Stake Held

 

·       Hikma Pharmaceutical Supplies Co                                                        100 %

Sahab Industrial Estate

PO Box: 80

Amman 11512

Tel: (962-6) 4022816

Fax: (962-6) 4022302

 

·       Hikma Bulk Sterile Pharmaceuticals                                                        100 %

PO Box: 182400

Amman 11118

Tel: (962-6) 5811692 / 5826412

Fax: (962-6) 5817102

 

·       Hikma Chemicals                                                                                  100 %

Amman

     Jordan

 

·       Arab Medical Containers                                                                       100 %

Amman

     Jordan

 

·       Hikma Farmaceutica                                                                              100 %

     Portugal

 

·       West-Ward Pharmaceuticals                                                                  100 %

United States of America

 

·       Hikma Pharma Algeria Sarl                                                                    100 %

Algeria

 

·       Hikma Pharma SAE                                                                              100 %

Egypt

 

·       Thymoorgan Pharmazie GmbH                                                              100 %

Germany

 

·       Hikma Pharma GmbH                                                                            100 %

Germany

 

·       Hikma Italia SpA                                                                                   100 %

Italy

 

·       Al Jazeera Pharmaceutical Industries                                                     100 %

Saudi Arabia

 

·       Hikma Ibn Al Baytar                                                                              100 %

Tunisia

 

·       SPA Societe Al Dar Al Arabia                                                                100 %

Algeria

 

·       Pharma Ixir                                                                                             51 %

     Sudan

 

·       Hikma Olive Oil                                                                                       34 %

     Tunisia

 

·       Export & Finance Bank                                                                           10 %

     Jordan

 

 

OPERATIONS

 

Activities: Subject is engaged in the manufacture and marketing of pharmaceutical products, including antibiotics, cardiovascular drugs, anti-rheumatics, tranquillisers, analgesics, anti-diabetics, anti-ulcer preparations, and  a range of cough and cold preparations.

 

The factory was expanded in 1984 to include a sterile area for the production of injectables, namely powder and liquid vials and ampoules.

 

Hikma Pharmaceuticals Co Plc holds licensing agreements with several major pharmaceutical companies such as Fujisawa, Dainippon, Rhodia, Edmond Pharma and Cheil-Jedany.

 

The company was awarded the ISO 9001 certificate in early 2000.

 

Import Countries: Japan, the United Kingdom, France and the United States of America.

 

Clients : Biopharm                                                                    Algeria

              Maskati Pharmacy                                                       Bahrain

              State Co. for Drugs & Medical Appliances Marketing    Iraq

              A.M. Gharabally & Co.                                                 Kuwait

              Union Pharmaceutique D'Orient SAL                             Lebanon

              National Co for Pharmaceutical Industries                     Libya

              Al Anwar Pharmacy                                                     Oman

              Doha Drug Store                                                         Qatar

              Iris Servimpex Co.                                                       Romania

              A.R. Gosaibi                                                               Saudi Arabia

              Megacom Ltd                                                              Ukraine

              Ard Al Ganatain for Drugs & Medical Appliances Co     Yemen

 

Export Countries : Lebanon, Syria, Egypt, Kuwait, Qatar, Bahrain, United Arab Emirates, Oman, Yemen,

Iraq, Sudan, Libya, Algeria, Morocco, Vietnam, Germany, Sweden, the United Kingdom, the Czech Republic, Romania, Slovakia, Russia, the Ukraine and China.

 

Brand Name : HIKMA

 

Operating Trend : Steady

 

Subject has a workforce of approximately 5,400 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$ 000’s)

 

Consolidated Balance Sheet                                                                 31/12/12                        31/12/11

 

Non-current assets

Intangible assets                                                                                   433,049                         408,804

Property, plant and equipment                                                               419,943                         421,357

Interest in joint venture                                                                           38,337                          37,445

Deferred tax assets                                                                               45,772                          36,072

Financial and other non-current assets                                                    11,044                          12,079

948,145                         915,757

Current assets

Inventories                                                                                            272,231                         239,260

Trade and other receivables                                                                   328,147                         315,856

Income tax asset                                                                                   1,016                            1,486   

Collateralised cash                                                                                1,756                            2,595

Cash and cash equivalents                                                                    176,510                         94,715

Other current assets                                                                              2,307                            5,973

781,967                         659,885

Total assets                                                                                          1,730,112                      1,575,642

Current liabilities

Bank overdrafts and loans                                                                     192,879                         152,853

Obligations under finance leases                                                            3,480                            3,300

Trade and other payables                                                                      194,805                         169,212

Income tax provision                                                                             23,029                          14,561

Other provisions                                                                                    10,664                          9,398

Other current liabilities                                                                           42,097                          39,622

466,954                         388,946

Net current assets                                                                                 315,013                         270,939

Non-current liabilities

Long-term financial debts                                                                      372,488                         344,895

Obligations under finance leases                                                            15,891                          18,134

Deferred tax liabilities                                                                            22,921                          23,147

Derivative financial instruments                                                              4,008                            1,886

                                                                                                            415,308                         388,062

Total liabilities                                                                                       882,262                         777,008

Net assets                                                                                            847,850                         798,634

Equity

Share capital                                                                                         35,091                          34,904

Share premium                                                                                      279,116                         278,094

Own shares                                                                                           (86)                               (2,222)

Other reserves                                                                                       518,532                         465,799

Equity attributable to equity holders of the Parent                                   832,653                         776,575

Non-controlling interests                                                                        15,197                          22,059

Total equity                                                                                           847,850                         798,634

 

Consolidated Statement of Income

 

Revenue                                                                                               1,108,721                      918,025

Cost of sales                                                                                        (607,603)                       (522,676)

Gross profit                                                                                          501,118                         395,349

Sales and marketing costs                                                                     (152,763)                       (125,295)

General and administrative expenses                                                      (124,560)                       (107,540)

Research and development costs                                                          (34,019)                        (31,218)

Other operating expenses (net)                                                              (23,002)                        (12,608)

Total operating expenses                                                                       (334,344)                       (276,661)

Adjusted operating profit                                                                       193,835                         145,824

Exceptional items:

Acquisition related expenses                                                                 (3,131)                          (16,368)

Severance expenses                                                                            (4,469)                         -

Plant remediation costs                                                                         (6,787)                          -

Inventory related adjustment                                                                  -                                   (1,770)

Intangible amortisation                                                                           (12,674)                        (8,998)

Operating profit                                                                                     166,774                         118,688

Share of results of associated companies                                              892                               (1,164)

Finance income                                                                                     1,266                            468

Finance expense                                                                                   (35,717)                        (23,368)

Other expense (net)                                                                               (1,174)                         (732)

Profit before tax                                                                                    132,041                         93,892

Tax                                                                                                       (24,826)                       (10,423)

Profit for the year                                                                                  107,215                         83,469

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       Jordan Kuwait Bank

Abdali Branch

PO Box: 9776

Amman

Tel: (962-6) 5688814


·         ANZ Grindlays Bank

Shmeisani Branch

PO Box: 9997

Amman

Tel: (962-6) 4660201

Fax: (962-6) 4679115

 

·       Cairo Amman Bank

Shabsough Street

PO Box: 715

Amman

Tel: (962-6) 5639321 / 5623100 / 5623109

Fax: (962-6) 5639328

 

·       HSBC Bank Middle East

Khalid Bin Walid Street

Jebel Hussein

PO Box: 925286

Amman

Tel: (962-6) 5660471 / 5607471

Fax: (962-6) 5692964

 

·       Arab Bank Plc

Shmeisani Branch

PO Box: 950545 & 950544

Amman 11195

Tel: (962-6) 5607231 / 5607115

Fax: (962-6) 5606793 / 5606830

 

 

PAYMENT HISTORY

 

Subject’s payment record is reported to be met in a generally prompt manner.

 

 

GENERAL COMMENTS

 

Over the years, Hikma Pharmaceuticals Co Plc has managed to emerge as a leader in the pharmaceutical industry and now occupies a strong, well-respected position in the local and neighbouring market.

 

The company is engaged in the manufacture and marketing of a wide range of pharmaceutical products and holds licensing agreements with many leading international pharmaceutical companies.

 

Mr Nedal El Bedawi, the Import & Export Manager confirmed that the correct registered name of the company is “Hikma Pharmaceuticals Co Plc”, and he provided the headed paper of the company. He also said that the company is also known as “Hikma Pharmaceuticals Industries” and “Hikma Pharmaceuticals” but that it is only registered under the one name of “Hikma Pharmaceuticals Co Plc”.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.89

UK Pound

1

Rs.103.95

Euro

1

Rs.88.09

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.