MIRA INFORM REPORT

Report Date :

22.05.2014

IDENTIFICATION DETAILS

Name :	OPKO CHILE S.A.
Registered Office :	Agustinas 640 Piso 10, 8320219 Santiago / XIII Región Metropolitana
Country :	Chile
Financials (as on) :	31.07.2011
Date of Incorporation :	22.09.2006
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing, marketing, import and export of generic medicines. It contracts Services of External Laboratories.
No of Employees :	90

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
Chile	A2	A2

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	OPKO CHILE S.A.
TAXPAYER REGISTRATION	RUT 766696309
MAIN ADDRESS	Agustinas 640 Piso 10,
POSTAL CODE	8320219
DEPT/PROV/REGION/STATE	Santiago / XIII Región Metropolitana
COUNTRY	CHILE
TELEPHONE	(562) 27130700 - 27130701
WEB	www.opko.com
COMMENTS
Fax : 56-2-27130711 E_Mail : hberner@opko.com, edvasquez@opko.com

EXECUTIVE SUMMARY
Date of foundation	2006
Capital stock	Ps$1,200,000,000.= Pesos
permanent employees	90
Chief Executive	BERNER SOTO, HANS
Disposition	Poor. Very few information was given. Politely.
Payments policy	Without rating (No payment experience traced)
Number of times that this company was required: 2

REPUTATION

NOTHING AGAINST COMPANY

LEGAL STRUCTURE
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	22SEP2006
PLACE OF REGISTRY	Santiago.
NOTARY OFFICE	José Musalem Saffie.	DURATION	Indefinite
INITIAL CAPITAL	Ps$1,200,000,000.= Pesos
CURRENT PAID-IN CAPITAL	Ps$1,200,000,000.= Pesos
COMMENTS
Founded in 2006 under the name Pharma Genexx S.A. Its constitution was published in the Official Gazette on 28/09/2006 Page No 12. By public deed dated26/07/2010 before a notary Patricio Raby Benavente de Santiago, published in the Official Gazette on 30/07/2010 Page No. 8, there was change in the corporate name of "Pharma Genexx S.A." by "Opko Chile SA"

DIRECTORS - EXECUTIVES - SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
FROST, PHILLIP	President
HSIAO, JANE	Director
RUVIN, STEVEN	Director
UPPALURI, RAO	Director
INMAN, KATE	Director
BERNER SOTO, HANS	General Manager
RIVAS, DAVID	Commercial manager
VASQUEZ, DAVID	Finance manager
MARTINEZ, JESSICA	Treasurer chief
OPKO HEALTH INC.	Shareholder / Member	100%

WHO IS WHO?

OPKO HEALTH INC.

BUSINESS BACKGROUND

OPKO Health, Inc., based in Miami is a specialized health care company involved in the discovery, development and commercialization of pharmaceutical products, medical devices, vaccines, diagnostic technologies and imaging systems. Initially focused on the treatment and management of eye diseases, OPKO has since spread to other areas of major unmet medical needs such as oncology, infectious disease and neurological disorders.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
ALS DISTRIBUIDORA LTDA	CHILE	760700339	Related

BUSINESS

SIC Classification

W - SALUD HUMANA, LABORATORIOS FARMACEUTICOS, CLINICOS, HOSPITALES-FARMACIAS- RADIO (Salud Humana, Clinicas, Hospitales, Farmacias, Laboratorios Farmaceuticos, clinicos, Rayos X, Ecografías,)

Main activity

Manufacturing, marketing, import and export of generic medicines. It contracts Services of External Laboratories.

OPERATIONS

Import

Yes

Country

Argentina, Brazil, China, Spain, India and Mexico.

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2014	2,904,709.00
2013	13,624,909.00
2011	8,508,276.00

Export

Yes

% CASH SALES / METHOD

5%

% Credit SALES / Terms

95%

% Ventas exterior (Paises)

1%

% DOMESTIC PURCHASES

20%

% FOREIGN PURCHASES

80%

SELLING TerritorY

Domestic and international market

EMPLOYEES

90

LOCATION
OTHER PREMISES	Property located in central/commercial area on main busy street, building in good condition. No branches recorded.

Comments

Sales / services are maintained throughout the year 
100% Wholesale
 
Customers 
Its main clients are: Pharmacies, hospitals, public companies. 
 
The 5 most important customers are:
- Farmacias Ahumada S.A., 
- Central de Abastecimiento del Sistema Nacional del Servicio de Salud, 
- Salcobrand S.A., 
- Fasa Chile S.A., 
- Servicio Nacional de Salud.

FINANCIAL INFORMATION

Disposition

C: Poor. Very few information was given. Politely.

Interviewee(s)

Sr. David Vásquez,

Position(s)

Finance manager

Information provided

Who provided only general information. 
We have conducted reseajrch on official media where additional information is gathered. 
 
It is transcribed as historical data, but with no effects to analyze and estimate its recent financial situation, the balance sheet figures to 31/07/2011 (7 months), only one available.

INTERIM BALANCE SHEET
Balance Sheet Date	31JUL2011
Type of balance sheet	Referential
Period	7 months
Currency	Pesos
Exchange Rate per US$	457.3
A S S E T S
Cash/banks	205,456,000.00
Receivables	6,779,445,000.00
Inventory	4,999,448,000.00
Current Assets	11,984,349,000.00
Fixed	57,890,000.00
Others	90,217,000.00
Total Assets	12,132,456,000.00
L I A B I L I T I E S
Bank/Suppliers	6,486,214,000.00
Others	1,486,684,000.00
Current liabilities	7,972,898,000.00
S H A R E H O L D E R S'  E Q U I T Y
Capital	1,275,144,000.00
Reserves	77,297,000.00
Profit (Loss)	2,238,361,000.00
Others	568,756,000.00
Total shareholders equity	4,159,558,000.00
Total liab. / Sh. equity	12,132,456,000.00
Sales	6,769,574,000.00
Profit (Loss)	568,756,000.00

R A T I O
Liquidity ratio	1.50	(Current assets / Current liabilities)
Debt-to-equity ratio	52.17 %	(Shareholders' equity / Current liabilities %)
Profitability ratio	8.40 %	(Profits / Sales %)
Working capital	4,011,451,000.00	(Current assets - Current liabilities)

SALES

US$ 0.00 ()

FINANCIAL SITUATION

FAIR
Despite not having available financial statements, they report that the company has financial support of its owners. It is known that the company operates without problems.

Property of company comments

It is part of its assets: Equipment and additional supplies for the normal development of their activities, of which no detail was required.

INSURANCE

COMPANY	AGAINST
CHUBB DE CHILE CIA. DE SEGUROS GENERALES	All risk

Main fixed assets of the company (general detail)

Purpose of Insurance: Stock

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

CREDIT BUREAU COMMENTS

The Subject does not figure published in the Bulletin of Commercial Information, with protested checks, bills or notes. 
No of Labor Violations. 
No of Social Security Offences. 
No bad debts recorded.

Comments :

The Subject operates with the following banks: - Banco Bice - Banco de Chile Cta. Nº 63505-07 - Banco Itau Chile

GENERAL INFORMATION

Explanation about commercial reputation

PRESS RELEASES

SPECIAL NOTE: 12/04/2012
 
OPKO Health, Inc. (NYSE Amex: OPK) has signed a definitive agreement to acquire Pharma Genexx SA, a Chilean pharmaceutical company dedicated to representation, import, marketing and distribution of pharmaceutical products, OTC products and medical devices for government, private and institutional markets. 
 
OPKO acquired Pharma S.A.Genexx de EE.UU. in a cash transaction of FASA, the largest drugstore chain in Latin America, and Laboratorios Volta S.A., a Chilean pharmaceutical company. Pharma Genexx SA began operations in 2006 and has since experienced continued growth in sales and profits. 
 
OPKO Health, Inc., based in Miami is a specialized health care company involved in the discovery, development and commercialization of pharmaceutical products, medical devices, vaccines, diagnostic technologies and imaging systems. Initially focused on the treatment and management of eye diseases, OPKO has since spread to other areas of major unmet medical needs such as oncology, infectious disease and neurological disorders.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 58.77
UK Pound	1	Rs. 99.01
Euro	1	Rs. 80.56

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	DPT

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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