MIRA INFORM REPORT

Report Date :

22.08.2014

IDENTIFICATION DETAILS

Name :	LABORATORIO CHILE S.A.

Registered Office :	Marathon 1315 Nuñoa, Santiago, XIII Regiòn Metropolitana

Country :	Chile

Date of Incorporation :	2001

Legal Form :	Joint-Stock Company

Line of Business :	Subject is engaged in manufacture and sale of pharmaceutical and veterinary products.

No of Employees :	1,100

RATING & COMMENTS

MIRA’s Rating :

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Chile

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

CHILE - ECONOMIC OVERVIEW

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME	LABORATORIO CHILE S.A.
TAXPAYER REGISTRATION	RUT 775969407
MAIN ADDRESS	Marathon 1315 Nuñoa, Santiago
DEPT/PROV/REGION/STATE	XIII Regiòn Metropolitana
COUNTRY	CHILE
TELEPHONE	(562) 23655014 23655000 23655235
CORPORATE E-MAIL	elleny.nazar@laboratoriochile.cl
WEB	www.labchile.com
COMMENTS
We further recall that the order was forwarded without phone number to expedite the investigation.

EXECUTIVE SUMMARY

Date of foundation	2001
Capital stock	Ps$217,743,519,889.= Pesos
permanent employees	1,100
Chief Executive	PFEIFFER FRENZ, HERNAN
Disposition	SATISFACTORY
Payments policy	Usually to terms / good
Credit ()**	Risk is Minimal, Solvent, Satisfactory Financial Situation.
Number of times that this company was required: 10

LEGAL STRUCTURE

LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	2001
PLACE OF REGISTRY	Santiago
NOTARY OFFICE		DURATION	Perpetual
REGISTRATION	No.10.303, Page 12804 of Trade Registry - Santiago
CURRENT PAID-IN CAPITAL	Ps$217,743,519,889.= Pesos	LAST CAPITAL INCREASE	28/09/2004
CURRENT EXCHANGE RATE (US$)	Ps$575,99 per 1USD
COMMENTS
The last capital increase was carried out on September 28, 2004 due to a merger. The company's capital is divided in 315,963,033 single series, registered shares.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
PFEIFFER FRENZ, HERNAN	General Manager
HENRIQUEZ, NORMAN	Admin. & Finance Manager
CHAVEZ, VLADIMIR	Operations Manager
HEREDIA P., EDUARDO	Sales Manager
GARCIA A., CLAUDIO	Marketing Manager
RUIZ, PATRICIO	Human Resources Manager
GARSTMAN, JAIME	Finance Manager
BASTIAS ALVAREZ, HECTOR	General Accountant
IVAX HOLDING C.I.	Shareholder / Member	99.99%

WHO IS WHO?

PFEIFFER FRENZ, HERNAN
TITLE	General Manager
NATIONALITY	Chilean
PROFESSION	Commercial Engineer
BACKGROUND INFORMATION	He graduated from Universidad Adolfo Ibañez (1977-1981 ). He studied a Senior Management Program at Universidad de Los Andes (2004 ).


IVAX HOLDING C.I.

BUSINESS BACKGROUND Cayman Islands-based company

BUSINESS HISTORY

Subject Company was incorporated in 2001 as INVERSIONES GLACIAR I LTDA. Then, its legal status was changed to a Joint Stock Company, adopting the company name GLACIAR S.A..

By Public Deed, dated 29/05/2001, before Rene Benavente Cash, Notary from Santiago, published in the Official Gazette on 12/06/2001, page No.20, the company's partners were changed.  Mr. Jose Maria Eyzaguirre Baeza transferred all his rights (99.99) to Ivax Holdings C.I., and  Mr. Matias Mackenna Vicuña transferred his rights (0.1%) to Ivax Corporation, and the assignors withdrew.

By Public Deed dated 02/0//2004, before Pablo Roberto Poblete S., Notary from Santiago, published in the Official Gazette on 10/08/2004, page No.32, the company's corporate name was changed from GLACIAR S.A. to LABORATORIO CHILE S.A.

By Public Deed dated 28/09/2004, before Rene Benavente Cash, Notary from Santiago, published in the Official Gazette on 06/10/2004, page No.17, the company's bylaws were changed.  The merger between LABORATORIO CHILE S.A. (RUT 77.596.940-7) and its subsidiary, LABORATORIO CHILE S.A. (RUT 90.322.000-7) was authorized. The latter company was dissolved.

It is known that TEVA GROUP (Israel) has been the owner of LABORATORIO CHILE S.A. since July 2006. IVAX merged with TEVA. The owner of IVAX HOLDING (it was established as an investment company to acquire the laboratory) TEVA. IVAX CORPORATION (USA) Some companies in the group are still called IVAX, others not anymore. In Peru, the company is called CORPORACION MEDCO, in Uruguay ELVEDIUM, in Colombia LBC, in Mexico LEMERI or IVAX MEXICO.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
ELVEDIUM	URUGUAY		Related
IVAX ARGENTINA S.A.	ARGENTINA		Related
IVAX CORPORATION	U.S.A.		Related
LBC	COLOMBIA		Related
TEVA PERU S.A.	PERU	(AC) 20101269834	Related

BUSINESS

SIC Classification

T - PROD. QUIMICOS- PLASTICOS- VETERINARIOS-AGROQUIMICOS (Industria quimica en general, Produccion y comercializacion de plasticos y derivados, Veterinarios y agroquímicos, Reactivos)

Main activity

Subject is engaged in manufacture and sale of pharmaceutical and veterinary products.

OPERATIONS

Import

Yes

Country

Uruguay, Argentina, China, India, Switzerland, Spain, Colombia, Holland, Israel

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2014	2,669,887.83
2013	40,918,851.78
2012	45,002,860.95
2011	40,931,201.53
2010	37,616,614.32
2009	32,232,423.81

Export

Yes

COUNTRY

Bolivia, Paraguay, Venezuela, Ecuador, Uruguay, El Salvador, Mexico, Switzerland

Annual exports in US$ (FOB)

YEAR	AMOUNT
2014	530,890.52
2013	21,326,560.55
2012	23,882,766.29
2011	24,647,886.16
2010	15,185,216.76
2009	15,419,616.31

% Credit SALES / Terms

100% (60-day terms)

% DOMESTIC PURCHASES

40%

% FOREIGN PURCHASES

60%

SELLING TerritorY

Domestic and international market

EMPLOYEES

1,100

LOCATION

PREMISES

Own Settled

OTHER PREMISES

The Tax domicile and Offices operate at the main address.

Subject has two Production Plants.

Comments

Subject's client portfolio includes drugstores, supermarket chains, hospitals, clinics, municipalities and veterinary centers, such as:

- Farmacias Ahumada S.A.

- Salcobrand SA

- Farmacias Cruz Verde S.A.

Subject manufactures and distributes a diversified portfolio of 600 pharmaceutical products, including 90 clinical and specialized presentations for hospital use.

Currently, it has two production plants with an annual production capacity of 3,300 million industrial units and flexible manufacturing processes, having one of the lowest cost of production per unit in Latin America.

FINANCIAL INFORMATION

Disposition

Poor. Very few information was given. Politely.

Interviewee(s)

Hector Bastias

Position(s)

General Accountant

Information provided

The interviewee only confirmed operating information.

SALES

US$ 0.00 ()

FINANCIAL SITUATION

SATISFACTORY

Although there are no Financial Statements available, reportedly the company has the economic support of the owners. It is publicly known that it operates without further problems.

Property of company comments

Subject's main assets include:

- Industrial machinery and equipment

- Office furniture

- Computer equipment

INSURANCE

COMPANY	AGAINST
SEGUROS M & T BENTFIELD	All risk

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: LABORATORIOS BOSTON S.A.	Tel.: (56.2) 4458500	Country: CHILE
Goods/Services? : Manufacture of medical products
Highest credit? : DC Open		Current
Client since? : 1999	Terms? : 60 days	Performance? : Prompt
Comments : Monthly average: 50-60 million Pesos. Good client.
Supplier: FARET SA	Tel.: (56.2) 4135000	Country: CHILE
Goods/Services? : Card boxes
Highest credit? : DC Open		Current
Client since? : 1994	Terms? : 60 days	Performance? : Prompt
Comments : Monthly average: 10 millions. Good client.
Supplier: CRISTALERIAS TORO SAIC	Tel.: 562 2 2437 4500	Country: CHILE
Goods/Services? : Glass containers
Highest credit? : DC Open		Current
Client since? : 1994	Terms? : 75 days	Performance? : Prompt
Comments : Monthly average: 5 million Pesos. Good client.
Supplier: LABORATORIOS LASCA	Tel.: (595 21) 506 889	Country: PARAGUAY
Goods/Services? : Chemical inputs
Highest credit? : DC 300,000,000.=		Current
Client since? : 2011	Terms? : 90 days	Performance? : Prompt
Comments : Good client
Supplier: ETAL IMPRENTA LTDA.	Tel.: (56.2) 2384863	Country: CHILE
Goods/Services? : Printing service
Highest credit? : DC 20,000,000.=		Current
Client since? : 2003	Terms? : 60 days	Performance? : Prompt
Comments : Good client.

Note : Other suppliers did not provide information or could not be consulted

Supplier	Country
CRISTALERIAS DE CHILE SA	CHILE
AGENCIA REPRESENTACIONES LTDA.	CHILE
PROCATS	COLOMBIA
OFIMARKET	CHILE
CHEMO	SWITZERLAND

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.77
UK Pound	1	Rs.100.72
Euro	1	Rs.80.56

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	SMN

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.