MIRA INFORM REPORT

 

 

Report Date :

09.07.2014

 

IDENTIFICATION DETAILS

 

Name :

ARAB PHARMACEUTICAL MANUFACTURING CO LTD (APM)

 

 

Registered Office :

King Hussein Street, PO Box : 1695, Amman 11118

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1962

 

 

Com. Reg. No.:

646

 

 

Legal Form :

Private Shareholding Company

 

 

Line of Business :

Subject is engaged in the production, packaging and marketing of medications, intravenous solutions, chemical and nutritional products, vitamins, hormone drugs, organ extracts, pharmaceutical preparations, carbohydrates, proteins, enzymes and veterinary products.

 

 

No. of Employees :

126

 

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, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Jordan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. In 2013, Jordan depended heavily on foreign assistance to finance the budget deficit, as the influx of about 600,000 Syrian refugees put additional pressure on expenditures.

 

Source : CIA

 

 

 

 


SUMMARY

 

Company Name                                     : ARAB PHARMACEUTICAL MANUFACTURING CO LTD (APM)

Country of Origin                                    : Jordan

Legal Form                                            : Private Shareholding Company

Start Date                                             : 1962

Commercial Registration Number            : 646

National ID Number                                : 2000104017

Issued Capital                                        : JD 20,000,000

Paid up Capital                                      : JD 20,000,000

Total Workforce                                     : 126

Activities                                               : Producers and packagers of medications and pharmaceutical preparations.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Yazan Hijab, Treasury Manager

 

 

 


COMPANY NAME

 

ARAB PHARMACEUTICAL MANUFACTURING CO LTD (APM)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : King Hussein Street

PO Box             : 1695

Town                 : Amman 11118

Country             : Jordan

 

Telephone         : (962-6) 5802200 / 5685121

Facsimile          : (962-6) 5802203 / 5685131

Mobile               : (962-77) 7716583 / (962-79) 5439388

Email                : info@apm.com.jo / aallahham@apm.com.jo / yhijab@apm.com.jo

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Amman.

 

Branch Office (s)

 

Location                                                                                              Description

 

Al Salalem Street                                                                                   Factory premises

Al Salt Industrial Area, Buhaira

PO Box: 42

Al Salt 19110

Tel: (962-5) 3491200 / 3554961 / 3554962 / 3554963 / 3492200

Fax: (962-5) 3551897 / 3491207 / 3491203

 

Ammn                                                                                                   Warehouse premises

Tel: (962-6) 5685131

 

PO Box: 2418                                                                                        Laboratory premises

Damascus

Syria

 

 


KEY PRINCIPALS

 

Name                                                                                                   Position

 

Mazin Samih Taleb Darwazah                                                                 Chairman

 

Dr Salah Mohamed Al Moajdah                                                               Vice Chairman

 

Dr Khaled Jerwan                                                                                   Director

 

Basil Awadallah                                                                                     Director

 

Yayha Juma Al Qawasmah                                                                     Director

 

Basil Nimer Zayedah                                                                              Director

 

Dr Salah Al Moajdah                                                                              General Manager

 

Yasser Mulhem                                                                                     Assistant General Manager

 

Elis Fadel                                                                                              Supply Chain Manager

 

Ahmed Allaham Arabiya                                                                         Finance Manager

 

Yazan Hijab                                                                                           Treasury Manager

 

Ali Herms                                                                                              Purchasing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           1962 (Production began in August 1964)

 

History :                                   Subject began in 1962 as a Public Shareholding Company, but re-registered as a Private Shareholding Company in 2010.

 

Legal Form      :                       Private Shareholding Company

 

Commercial Reg. No.  :           646

 

National ID No.            :                       2000104017

 

Issued Capital              :           JD 20,000,000

 

Paid up Capital            :           JD 20,000,000

 


Name of Shareholder (s)                                              Percentage

 

Hikma Pharmaceuticals Co Plc                                       100%

PO Box: 182400

Amman 11118

Jordan

Tel: (962-6) 5811692

Fax: (962-6) 5817102

 

 

AFFILIATED COMPANIES

 

Jordan Antiseptics & Detergents Co

Amman

 

Jordan Detergents Company

Amman

 

Arab Algerian Pharmaceutical Distribution Company

Algeria

 

 

OPERATIONS

 

Activities:                     Subject is engaged in the production, packaging and marketing of medications, intravenous solutions, chemical and nutritional products, vitamins, hormone drugs, organ extracts, pharmaceutical preparations, carbohydrates, proteins, enzymes and veterinary products.

 

Subject’s full product range covers Alimentary Tracts, Blood & Blood Forming Organs, Cardiovascular System, Central Nervous System, Dermatologicals, Musculo-Skeletal System, Respiratory System, Systemic Anti-Infectives, Systemic Hormones, Systemic Trichomonacides, Generics, and I.V Fluids

 

Subject has a licensing agreement with Takeda, Japan.

 

                                    Clients include the Bulgarian Drug Agency.

 

Import Countries:         Germany and the United Kingdom

 

International Suppliers:

 

Astra Zeneca                 United Kingdom

 

Export Countries:         Subject exports to over 30 countries in the Middle East, Africa and Eastern Europe. The main markets are Iraq, Saudi Arabia, Algeria and Libya. Exports constitute approximately 70 percent of total sales.

 

Brand Names:              APM

 

Operating Trend:         Steady

 

Subject has a workforce of 126 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Jordanian Dinars (JD)

 

                                                Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                                JD 52,629,744                           JD 51,964,263

 

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

 

The above figures were provided by Mr Yazan Hijab, Treasury Manager

 

 

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

 

Jordan Islamic Bank

Shmeisani Branch

PO Box: 926225

Amman

Tel: (962-6) 5677377

 

Arab Bank Plc

Shmeisani Branch

PO Box: 950545 & 950544

Amman 11195

Tel: (962-6) 5607231 / 5607115

Fax: (962-6) 5606793 / 5606830

 

Jordan National Bank

PO Box: 1578

Amman

Tel: (962-6) 4612391

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 May 2006                                  January 2009

Credit amount                                        150,000                         132,000

Amount overdue                         0                                              0

Payment terms                                      60 days                                     180 days

Payment Method                                   Letters of Credit                         Letters of Credit

Paying record                                        No Complaints                           No Complaints

Currency                                               US Dollars                                 Euros

 

 

GENERAL COMMENTS

 

In 1962 Arab Pharmaceutical Manufacturing Co Ltd (APM) was established and became the first pharmaceuticals producer in Jordan.

 

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.59.80

UK Pound

1

Rs.102.42

Euro

1

Rs.81.32

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NNA

 

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.