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Report Date : |
11.02.2014 |
IDENTIFICATION DETAILS
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Name : |
PERRIGO API LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
28.12.2013 |
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Date of Incorporation : |
21.08.1986 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers, exporters and marketers of Active Pharmaceutical
Ingredient (API), for the generic pharmaceutical industry. |
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No. of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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.
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Source
: CIA |
Correct Name: PERRIGO API LTD.
(Also known
as CHEMAGIS)
Telephone 972 3 577 36 09; 577 38 80; 636 92 22
Fax 972 3 577 38 23
P.O.
Box 2231 (5112102)
31
Lehi Street
Industrial
Zone
BNEI
BRAK 5120052 ISRAEL
A private limited company, incorporated as per file No. 51-113965-1 on
the 21.08.1986.
Originally registered under the name CHEMAGIS LTD., which changed to the
present name on the 08.08.2013.
Authorized share capital NIS 55,000,000.00, divided into -
55,000,000 ordinary
shares of NIS 1.00 each,
of which 42,961,680 shares amounting to NIS 42,961,680.00 were issued.
Subject is fully owned by PERRIGO ISRAEL PHARMACEUTICALS LTD., a
wholly-owned subsidiary of PERRIGO COMPANY PLC., of Ireland, a public limited
company, whose shares are traded on the New York Stock Exchange (PRGO) and the
Tel Aviv Stock Exchange.
Note: following the acquisition of ELAN in December 2013 (in cash and share
swap), PERRIGO COMPANY PLC took over all activities of PERRIGO COMPANY INC.
(including being traded on a/m stock exchange).
1. Joseph C. Papa, CEO of
PERRIGO CO.,
2. Ms. Judy L. Brown,
Executive V.P. and CFO of PERRIGO CO.,
3. Ms. Sharon Kochan.
Yoav Greenberg.
Developers, manufacturers, exporters and marketers of Active
Pharmaceutical Ingredient (API), for the generic pharmaceutical industry.
Over 90% of sales are for export.
Sales are to generic and branded pharmaceutical companies worldwide,
including to affiliate PERRIGO manufacturers.
Among local suppliers: LUXEMBOURG INDUSTRIES, MARLOV, YES PHARMA, TAGAD
CHEMICALS, SMADAR TECHNOLOGIES, HOLLAND-MORAN, TECHNO BEARING TOOLS B.S., BIO
PHARMAX GROUP,
Operating from main offices in 31 Lehi Street, Industrial Zone, Bnei
Brak (PERRIGO Group headquarters is located in 29 Lehi Street) and from:
1. Offices and laboratories
(rented), on an area of 700 sq. meters in 3 Hashlosha Street, Tel Aviv,
2. A plant, on an area of
69,700 sq. meters (owned by the Group), in Ramat Hovav Industrial Zone, south
of Beer Sheva (the address you provided).
PERRIGO Group also erects an API facility in India.
Having some 500 employees in subject as of end of 2012.
Having 1,300 employees serving PERRIGO ISRAEL Group (had 1,200 employees
in 2012, 1,000 employees in 2011).
There are 9,900 employees in PERRIGO Group worldwide.
Subject's stock was valued at US$
PERRIGO CO. current market value US$ 20,422 million.
Subject is an “Approved Enterprise” and as such enjoys tax benefits and
State incentives.
In June 1999 the Israeli Investment Center (IIC) approved subject’s
investment plan of US$ 6.87 million for the expansion of the plant in Ramat
Hovav, and a further US$ 8 million investment plant was approved in April 2001.
In July 2003, IIC approved US$ 8 million investment plan for the
expansion of subject’s plant.
According to PERRIGO CO.'s financial statements, total assets attributed
to API Division, which subject is a major part of, as of 28.12.2013: US$ 284.7
million.
There
In September 2011 PERRIGO CO. issued notes, raising US$ 350 million in a
private placement.
In May 2013 PERRIGO CO. raised US$ 600 million issuing bonds.
Financial data is included in the consolidated B/S of PERRIGO COMPANY
PLC which shows (fiscal year ends June 30th):
US$
(millions)
29.06.2013 28.12.2013
ASSETS
Current assets
Cash
& cash equivalents 779.9 606.6
Accounts
receivable 651.9 769.8
Inventories 703.9 702.3
Other
current assets 101.2 207.3
2,236.9 2,286.0
Property & equipment (net) 681.4 718.5
Goodwill 1.174.1 3,255.6
Other intangible assets 1.157.6 7,223.3
Other non-current assets 100.8 229.4
5,350.8 13,712.8
======= =======
LIABILITIES
Current liabilities 749.4 961.8
Non-current liabilities 2,268.8 4,249.8
Equity 2,332.6 8,501.2
5,350.8 13,712.8
======= =======
Note: The B/S for 29.06.2013 is still of PERRIGO COMPANY INC., whereas
28.12.2013 B/S is of PERRIGO CO. PLC including ELAN.
PERRIGO officials reported in June 2012 that over the last years the
Group invested some NIS 280 million in its Israeli plants, as well as a yearly
sum of around US$ 30 million in R&D. PERRIGO VP further stated that PERRIGO
is intending to invest further US$ 40 million, and will recruit additional 100
employees.
Sales by PERRIGO’s API segment (which comprises mainly of subject’s
activities) for the fiscal year ending:
June 2009 - US$ 136,002,000, making an operating profit of US$
4,039,000.
June 2010 - US$ 139,287,000, making an operating profit of US$
15,312,000.
June 2011 - US$ 155,717,000, making an operating profit of US$
37,819,000.
June 2012 - US$ 165,782,000, making an operating profit of US$
55,525,000.
Sales for the first 6 months of fiscal year 2014 were US$ 73,200,000,
making an operating profit of US$ 30,600,000.
PERRIGO
COMPANY INC.
Consolidated
Statement of Income
US$
(millions)
Fiscal
Year ended 30th June
2013 2012 2011
Sales 3,539.8 3,173.2 2,755.0
Gross profit 1,280.0 1,095.6 944.9
Operating income 600.9 526.4 490.2
Income before income
taxes 607.7 512.0 450.6
Net income 441.9 401.6 339.2
======= ======= =======
PERRIGO COMPANY INC.
consolidated revenues for the first 6 months of 2014 (ending 28.12.2013) were
US$ 1,912.4 million (15.7% increase compared to the parallel period in 2013), making
a gross profit of US$ 717 million, an operating income of US$ 266.2 million,
and a net income of US$ 25.3 million.
PERRIGO API USA, INC., USA,
PERRIGO API PVT. LTD., India,
Also: CHEMAGIS GERMANY GmbH (Germany), CHEMAGIS B.V (Netherlands).
PERRIGO ISRAEL PHARMACEUTICALS LTD., developers, manufacturers,
importers, marketers and exporters of pharmaceuticals: (Rx) drugs (Innovation
& Generics), OTC prescription drugs, API (via subject), etc. Also Operates
as manufacturers of pharmaceuticals as sub-contractors for other companies and
as importers and marketers of medical equipment.
PERRIGO ISRAEL also controls (all fully owned subsidiaries, unless
otherwise mentioned):
PERRIGO ISRAEL AGENCIES LTD., importers, agents, distributors and
marketers of pharmaceuticals (branded prescription drugs under licenses),
including variety of products of all categories for therapeutic treatment for
example: gastro, men's healthcare, women's healthcare, dermatology etc.
ARGINET INVESTMENTS AND PROPERTY (2003) LTD.
PERRIGO ISRAEL ENTERPRISES & INVESTNETS LTD.
PHARMA CLAL (1983) LTD.
PERRIGO Group includes, among others:
L. PERRIGO COMPANY, PERRIGO COMPANY SOUTH CAROLINA,
PERRIGO NEW YORY INC., latter 3 of
USA, handles group's prime activities,
PERRIGO SALES CORPORATION,
PERRIGO RESEARCH AND DEVELOPMENT COMPANY,
PADDOCK LABORATORIES, LLC
QUIMICA Y FARMACIA S.A. DE C.V.,
LABORATORIOS DIBA, S.A.,
WRAFTON LABORATORIES LIMITED,
GALPHARM HEALTHCARE LTD.
ORION LABORATORIES PTY LTD.
PERRIGO INTERNATIONAL INC,
which controlls:
PERRIGO ISRAEL TRADING LIMITED PARTNERSHIP,
PERRIGO ISRAEL HOLDINGS
LTD., which controlls:
PERRIGO ISRAEL
OPPORTUNITIES II LTD.
Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
Mizrahi Tefahot Bank Ltd., Tel Aviv Main Business Center Branch (No.
461), Tel Aviv.
Nothing unfavorable learned, besides several pending cases handled in
courts regarding drugs patent related issues (which are common in the branch)
and alleged environment violations in Ramat Hovav plant (relatively
insignificant).
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Subject is veteran and well-known in its field. Its products comply with
the requirements and standards of leading health authorities including the FDA.
PERRIGO ISRAEL is the second largest supplier of pharmaceuticals to the
local market (after TEVA PHARMACEUTICALS), with 14% market share. It is the
second largest manufacturer of generic raw materials for the international
pharmaceutical market (also after TEVA). Moreover, PERRIGO ISRAEL is PERRIGO
Group's 2nd largest manufacturing and R&D facilities after the
USA.
PERRIGO CO. INC was founded 1887, based in Michigan. PERRIGO CO. PLC is
the largest OTC and food supplement manufacturer for the store brand market,
one of the 3 leading companies in USA in the RX generic dermatology field and
one of the 10 leading companies worldwide in the API field.
In March 2005, PERRIGO CO. of the USA completed the acquisition of local
AGIS INDUSTRIES (1983) LTD., in return of US$ 450 million in cash and 23% of
PERRIGO shares (the deal reflecting a US$818 million company value to AGIS).
Consequently, AGIS changed its name to PERRIGO ISRAEL PHARMACEUTICALS
LTD., was de-listed from trade and PERRIGO’s (parent) shares began trading on
the Tel Aviv Stock Exchange in March 2005.
In 2007 PERRIGO CO. acquired certain generic prescription dermatological
products from GLADES PHARMACEUTICALS INC. for US$ 57 million.
As part of PERRIGO re-organization in the Group’s activities in Israel,
in February 2010 PERRIGO completed the transaction of selling its Israel
Consumer Products business, i.e. manufacturing, marketing and distribution of
consumer products: cosmetics, toiletries, detergents (CARELINE, NECA, and
DAN-AGIS and AGIS DISTRIBUTION) along with the related production assets in Israel
to EMILIA DEVELOPMENT (O.F.G) LTD. of the Emilia Group, for total sum of NIS
205 million.
In the fourth quarter of fiscal 2009, PERRIGO decided to close its
German API facility (acquired in 2002 for of €2.9 million), though eventually sold
these operations to a 3rd party.
To further enhance its API business, in August 2009 PERRIGO acquired 85%
in VEDANTS DRUG & FINE CHEMICALS LTD., an API manufacturing facility near
Mumbai in India, for US$12 million, designed for manufacturing PERRIGO’s
high-volume API products, as well as expanding the Company’s vertical
integration of Rx and future candidate Rx-to-OTC switch products. Manufacturing
of API at this facility is expected to begin at the end of fiscal 2013 year and
will include certain API products currently manufactured in Germany and Israel
(PERRIGO ISRAEL General Manager said no dismissals in subject’s Ramat Hovav
Plant forecasted).
Following conflicts with the Ministry of Environment regarding sewage
dumping into collective pools in Ramat Hovav, in January 2011 it was agreed
that subject (together with another 4 companies) will construct separate sewage
pools with a total investment of NIS 400 million.
In June 2012 it was reported that PERRIGO will invest US$ 40 million in
the expanding of its plants in Yeruham and Ramat Hovav.
In December 2012 PERRIGO CO reported on the acquisition of 81.5% COBREK PHARMACEUTICALS, INC. of USA (drug
development company) on top of the 18.5% it held, for US$ 45 million.
In July 2013 PERRIGO CO completed the acquisition ELAN of Ireland (a
generic drug company) for US$ 8.6 billion, in cash and in shares. ELAN
manufactures a drug against MS, generating revenues of US$ 1.6 billion in 2012.
Following the acquisition and share swap, all activities of PERRIGO CO
INC. were transferred to a new company PERRIGO CO PLC.
Sales for exports by the local Pharmaceutical Manufacturing Industry in
2013 reached US$ 6,348 million, 7.3% decrease from 2012.
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.
Good for trade engagements.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.19 |
|
|
1 |
Rs.102.14 |
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Euro |
1 |
Rs.84.74 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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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 |
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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 |
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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.