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Report No. : |
306399 |
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Report Date : |
06.02.2015 |
IDENTIFICATION DETAILS
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Correct Name : |
ASSIA CHEMICAL INDUSTRIES LTD. |
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Formerly Known as : |
CHEMICAL EXPORT INDUSTRIES OF ASSA LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2014 (Consolidated – Parent Company ) |
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Date of Incorporation : |
14.08.1957 |
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Com. Reg. No.: |
51-016828-9 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Engaged as
Developers, Manufacturers, Exporters and Marketers of Active Pharmaceutical
Ingredients (API) and Fine Chemicals as well as Raw Materials for the
Pharmaceutical Industry. |
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No of Employees : |
Having over
1,000 employees |
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 : |
Good |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Israel |
A2 |
B1 |
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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. Cut diamonds, high-technology equipment, and pharmaceuticals
are among the leading exports. Its major imports include crude oil, grains, raw
materials, and military equipment. Israel usually posts sizable trade deficits,
which are covered by tourism and other service exports, as well as significant
foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5%
per year, led by exports. 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. 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. The economy has recovered
better than most advanced, comparably sized economies, but slowing demand
domestically and internationally, and a strong shekel, have reduced forecasts
for the next decade to the 3% level. Natural gas fields discovered off Israel's
coast since 2009 have brightened Israel's energy security outlook. The Tamar
and Leviathan fields were some of the world's largest offshore natural gas
finds this past decade. The massive Leviathan field is not due to come online
until 2018, but production from Tamar provided a one percentage point boost to
Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In
mid-2011, public protests arose around income inequality and rising housing and
commodity prices. Israel's income inequality and poverty rates are among the
highest of OECD countries and there is a broad perception among the public that
a small number of "tycoons" have a cartel-like grip over the major
parts of the economy. 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. In May 2013 the Israeli government, in a politically
difficult process, passed an austerity budget to reign in the deficit and
restore confidence in the government's fiscal position. Over the long term,
Israel faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
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Source : CIA |
ASSIA CHEMICAL INDUSTRIES LTD.
(Also trading as:
TEVA ASSIA)
Telephone 972 3 925 55
55
Fax 972 3 924
60 53
P.O. Box 3190, Petach Tikva
2 Denmark Street
Kiryat Arie Industrial Zone
PETACH TIKVA 4959279 ISRAEL
Additional
Address:
P.O. Box 2049
Emek Sara
BEER SHEVA 8412316 ISRAEL
A private limited
company, incorporated as per file No. 51-016828-9 on the 14.08.1957.
Originally
registered under the name CHEMICAL EXPORT INDUSTRIES OF ASSA LTD., which changed
to the present name on the 06.02.1977.
On 08.07.2002,
TEVA TECH LTD. (established 1983) was merged into subject.
Authorized share
capital NIS 550,000,000.00, divided into: -
250,000,000
ordinary A shares (190,307,393 shares issued),
300,000,000 ordinary shares (20,556,739
shares issued), all of
NIS
1.00 each,
of which shares
amounting to NIS 210,864,132.00 were issued.
Subject is fully
owned by TEVA PHARMACEUTICAL INDUSTRIES LTD.
TEVA is a public limited
company, whose shares are traded on the Tel Aviv Stock Exchange, the New York Stock
Exchange (NYSE:TEVA), as well as on Seaq International in London and the
Frankfurt and Berlin Stock Exchange.
1. Dov Primovich,
2. Yosef Mizrahi.
Erez
Vigodman (also President and CEO of TEVA PHARMACEUTICAL).
Yvgeny Valdman is
the Plant Manager in Teva Tech Site.
Subject is part of
the A.P.I Div. of TEVA Group (known as TAPI – Israel).
Developers, manufacturers,
exporters and marketers of Active Pharmaceutical Ingredients (API) and fine
chemicals as well as raw materials for the pharmaceutical industry. Most sales
are for exports.
Operating from
main premises (offices, plant, R&D facilities), on an area of 11,800 sq.
meters, owned by the TEVA Group, in 2 Denmark Street, Kiryat Arie Industrial
Zone, Petach Tikva and from facilities (plant, R&D and offices), on an area
of 110,000 sq. meters, in Teva Tech
Site, Ramat Hovav.
TEVA Israel also operates from several other facilities in
Israel, including from Group's headquarters in 5 Basel Street, Kiryat Arie
Industrial Zone, Petach Tikva (including Labs and Chain Supply Div. in 16 Basel
Street) and from a new logistic
center in Hevel Modi'in Industrial Park (near Shoham), on an owned area of 77,000
sq. meters, as well as facilities abroad.
Having over 1,000
employees.
Having 44,945
employees serving TEVA Group, of which 7,463 employees in Israel as of end of
2013 (had 45,945 employees in end of 2012) (see below CHARACTER on expected lay-off scheme).
TEVA current
market value US$ 53.94 billion.
Subject and other
companies in the TEVA Group are “Approved Enterprises” and as such enjoy tax
benefits and State incentives.
There is 1 charge for
an unlimited amount registered on the company's assets, in favor of the State
of Israel (charge placed January 1995).
In March 2011 TEVA raised US$ 750 million offering bonds on the NASDAQ.
In July 2011 it
was reported that TEVA received a US$ 1 billion credit line from Japanese banks
for the acquisition of TAIYO.
In April 2012 TEVA raised US$ 2.9 billion via bond issuing and bank
loans.
In December 2012 TEVA raised bonds in volume of US$ 2 billion.
In July 2013 it was reported that TEVA received a total of some NIS 12
billion tax incentives between 2006-2011. TEVA insists all tax benefits it got
are part of government's approval, on background of local public debate on the
matter.
Financial data is
included in the consolidated B/S of parent company TEVA PHARMACEUTICALS
INDUSTRIES LTD., which shows:
US$
(millions)
30.09.2014 31.12.2013
ASSETS
Current assets
Cash and cash equivalents 1,473 1,038
Accounts receivable 5,410 5,338
Inventories 4,591 5,053
Other current assets 2,448 2,291
13,922 13,720
Property, plant & equipment (net) 6,551 6,635
Identifiable intangible assets (net) 5,936 6,476
Goodwill 18,720 18,981
Other assets 1,479 1,696
46,608 47,508
====== ======
LIABILITIES
Current liabilities 11,669 11,965
Long-term liabilities 11,269 12,907
Equity 23,670 22,636
46,608 47,508
====== ======
REVENUES
TEVA
PHARMACEUTICALS INDUSTRIES LTD.
Consolidated
Statement of Income
US$
(millions)
Year
ended 31.12
2011 2012 2013
Sales 18,312 20,317 18,312
(of which sales of API) 747 796 692
Gross profit 9,515 10,652 9,515
Operating income 3,109 2,205 3,109
Income before income
taxes 2,956 1,819 2,956
Net income 2,768 1,910 2,768
====== ====== ======
TEVA PHARMACEUTICALS
consolidated revenues for the first 9 months of 2014 were US$ 15,104 million
(4.5% increase compared to the parallel period in 2013), making a gross profit
of US$ 8,167 million, an operating income of US$ 3,009 million, and a net
income of US$ 2,348 million.
In December TEVA published a
forecast for 2015 sales which are expected to be in range of US$19 - 19.4
billion, with operating profit of US$5.7 – 5.9 billion.
Parent company
TEVA PHARMACEUTICALS INDUSTRIES LTD., developers, manufacturers, marketers and
exporters of pharmaceuticals, chemicals, and veterinary products. TEVA and
subsidiaries develop generic and proprietary drugs in all major therapeutic
categories. Worldwide operations are conducted through a network of
subsidiaries primarily located in North America, Europe, Latin America and
Asia. Having direct operations in some 60 countries, including 50 finished
dosage pharmaceutical manufacturing sites in 25 countries, 17 pharmaceutical
R&D centers and 21 API manufacturing sites.
Principal operating subsidiaries in terms of aggregate total revenues
(all 100% stake unless otherwise stated):
TEVA CANADA
LIMITED (Canada)
TEVA SANTÉ SAS
(France)
RATIOPHARM GMBH
(Germany)
TEVA GMBH
(Germany)
TEVA
PHARMACEUTICAL WORKS PRIVATE LIMITED COMPANY (Hungary)
TEVA ITALIA S.R.L
(Italy)
TEVA SEIYAKU
(Japan)
TEVA LIMITED
LIABILITY COMPANY (Russia)
TEVA PHARMA S.L.
(Spain)
TEVA UK LIMITED
(UK)
TEVA
PHARMACEUTICALS USA, INC. (USA)
TEVA
PHARMACEUTICALS has many other subsidiaries abroad.
TEVA PHARMACEUTICALS
subsidiaries in Israel (100%):
SALOMON LEVIN & ELSTEIN LTD. (S.L.E), importers and
distributors of pharmaceuticals and allied goods.
TEVA
MEDICAL LTD., manufacturers, importers,
marketers of medical equipment, specializing in dialysis systems and solutions.
PLANTEX LTD., developers, manufacturers and marketers of raw materials
for generic medicine, part of API Division.
ABIC LTD.,
developers, manufacturers, exporters and marketers of pharmaceutical & fine
chemicals.
Bank Hapoalim Ltd.,
Beilinson Branch (No. 552), Petach Tikva.
Bank Leumi
Le’Israel Ltd., Principal Branch Tel Aviv (No.800), Tel Aviv.
Israel Discount
Bank Ltd., Jerusalem Main Branch (No. 060), Jerusalem.
Mizrahi Tefahot
Bank Ltd., Main Business Branch (No 461), Tel Aviv.
Nothing
unfavorable learned.
In the business aspect,
TEVA has been facing the challenge in respect to the approaching expire of
patent of its flagship drug Copaxone (the first
brand-name drug), for multiple sclerosis,
with US$ 4.3 billion sales in 2013 (US$ 4 billion 2012), some 20% of sales and main profit source in recent years. In June
2012 the Manhattan Federal Court ruled (in favor of TEVA) that its patent on
Copaxone is valid until 26.05.2014 (TEVA is appealing to the Supreme Court
against the advancement of expiring patent to this date). Yet in July 2013 the
New York District Court ruled that MYLAN LABORATORIES did not breach TEVA's 4
patens of Copaxone (of the 9 existing patents). In the UK the court ruled that
MYLAN did breach the patents, and cannot market a generic version.
Facing drop in
sales and profits in that aspect (which caused share price to lose some 20%),
TEVA announced on the embarking of a unprecedented streamlining program, under
the new CEO Erez Vigodman, in which it will scale down oversized parts of the
company (including the massive lay-off scheme reported above), while growing
its generics business and core R&D programs – including high-value complex
generics, expanding its presence in emerging markets and broadening its
portfolio, especially in its specialty medicines and OTC businesses. In
parallel, exiting noncore R&D activities of lice treatment, Oncology and
Woman's health. TEVA expects to realize approximately US$2 billion in annual
cost savings by the end of 2017, half of which by end of 2014.
TEVA reported in
October 2013 that it will reduce its global workforce by approximately 10%
(some 5,000 employees), and will complete the majority of the reduction by the
end of 2014. In this aspect, TEVA faces local public rage, given the large tax
relieves it receives from the government, seen by many as exaggerated in first
place, claiming relieves are related to benefits to the local market, including
hiring employees. As a result, TEVA has been freezing most of the local
dismissals.
In October 2013
subject's employees (some 1,100) called on unlimited strike due to a/m
re-organization plan. No later information published, we assume settlement
reached.
In October 2013, TEVA's CEO, Dr.
Jeremy Levin, resigned his position, due to continuous disagreements
between him and TEVA's Board, replaced by Erez
Vigodman (February 2014), who has a remarkable record in managing large
intenational corporations. The resignation of Dr. Jeremy Levin caused a drop in TEVA's stock value. According to a
rpeort from December 2013, a claim was filed to the New York District Federal
Court against TEVA, its chairman, and executives on the grounds that the
unproper handling of the shift caused the drop in TEVA's share.
Subject is
considered one of TEVA’s principal operating subsidiaries in terms of
pharmaceuticals and API R&D, manufacturing and sales.
TEVA
PHARMACEUTICALS is ranked 1st in the list of leading Israeli
companies in terms of market value. It is ranked among the top 20
pharmaceutical companies in the world and the leading generic pharmaceutical
company. TEVA’s global share in the generic pharmaceutical market is some11%
and in the American market share is estimated to be 24% (and market share of
16% in total prescription drugs in USA). In the local market TEVA has a 25%
market share in the pharmaceutical field. TEVA is the largest non-governmental
supplier of healthcare products and services in Israel.
Other significant
developments in TEVA Group history:
In June 2002, TEVA
completed its acquisition of HPFC (HONEYWELL PHARMACEUTICAL FINE CHEMICALS),
the raw material for medicines division of HONEYWELL in Italy, in consideration
of US$ 90 million.
At end of 2003
TEVA acquired SICOR, developers of API products and generic pharmaceuticals,
for US$ 3.4 billion (US$ 2 billion cash, US$ 1.4 billion shares).
In January 2006
TEVA finalized a major acquisition of its main competitor in generic drugs
field IVAX CORP., in value of US$ 8 billion (cash and shares).
In July 2008 TEVA
acquired BENTLEY PHARMACEUTICALS of Spain, manufacturers and marketers of
generic drugs, for US$ 360 million (in cash).
In December 2008
TEVA completed the acquisition of BARR PHARMACEUTICALS, INC. (NYSE: BRL), the
4th largest generic drug company worldwide (established 1970), in consideration
of US$ 9 billion - US$ 7.46 billion (40% in shares, rest in cash), as well as
taking upon itself BARR's debt in volume of US$ 1.5 billion. The acquisition
strengthens TEVA’s geographic expansion, as well as its penetration into the women health field with its
emergency contraception drug, approved by the FDA in July 2009.
In August 2010,
TEVA completed the acquisition of RATIOPHARM, Germany's second largest generics
producer for the sum of $4.95 billion (€3.625 billion). Following the
acquisition, TEVA will be the number one generic company in Europe, holding the
leading market position in ten countries, as well as ranking in the top three
in seven additional countries.
In
January 2011 TEVA completed the acquisition of THÉRAMEX, MERCK KGaA's European based
women's health business, for € 265 million.
In January 2011
TEVA acquired CORPORACION INFARMASA of Peru (purchase price not published). The
acquired company is to join TEVA’s Peruvian company MEDCO CORPORACION, becoming
Peru’s 2nd largest pharmaceutical company.
In July 2011 TEVA
completed the acquisition of 57% of TAIYO (Japan's 3rd largest
pharmaceutical company) for US$ 460 million.
In September 2011
TEVA acquired the partners shares (50%) in the TEVA-KOWA
PHARMA CO. Japanese joint ventue for US$ 150 million, and reached full ownership.
In October 2011
TEVA completed the acquisition of CEPHALON, a biotechnological company,
developers of nerve system drugs and more, for US$ 6.8 billion. CEPHALON,
established 1987, with 3,726 employees, was publicly traded on Nasdaq. Its
ethical drugs portfolio is complimentary to TEVA's.
In 2011 TEVA Group completed its new logistic
center in Hevel Modiin Industrial Park (near Shoham), to where they shifted the
logistics activities. Estimated investment in the
project is valued at US$ 100 million.
In August 2011 it was reported that TEVA
intends on erecting a natural gas power plant (45mV) in its Teva Tech plant in
Ramat Hovav, designed to supply their plant's electricity consumption, with an
investment of some US$ 70 million.
In July 2012 it
was reported that subject will receive NIS 1 million from the Ministry of
Energy, to convert its plant to operate base on natural gas.
In June 2012 the Manhattan Federal Court
ruled in favor of TEVA, ruling that TEVA's patent on Copaxone (TEV's flagship
drug with US$ 3.57 billion sales in 2011) is until May 2014, and no generic
drug can be marketed until then.
In December 2012 it was reported that TEVA
is establishing a joint venture in South Korea with HANDOK (in which subject
will hold 51%), to enter the South Korean market, valued at US$ 14 billion.
In February 2014, following a successful
tender offer for the shares held by the public, TEVA's subsidiary completed the
acquisition of NUPATHE INC. (80% of outstanding shares) which was traded on the
NASDAQ, for US$ 163 million.
In June 2014 TEVA
acquired LABRYS BIOLOGICS, INC. (manufacturers of treatments for chronic
migraine and episodic migraine) for US$ 200 million in upfront payment in cash
at closing, as well as up to US$ 625 million in contingent payments upon
achievement of certain pre-launch milestones.
In November 2014
it was reported that TEVA published a tender to construct Group's headquarter
(which will unite all of Group's local headquarters), in Petach Tikva, in
volume of NIS 300 - NIS 400 million.
Annual sales
volume in the local pharmaceuticals market is estimated at NIS 4 billion,
divided into NIS 1.8 billion to the institutional sector (HMO's, hospitals, etc.)
and NIS 1.2 billion to the private sector (including pharma retail chains).
In 2009 sales of
drugs for human consumption (including from import) reached US$ 1,409 million
(US$ 1,416 million in 2008), of which estimated over US$ 1,100 million were from
import.
Over 90% of sales
by the local Pharmaceutical Industry are for export.
Sales for exports
of pharmaceuticals in 2014 reached US$ 6,513.7 million, representing 3.1%
increase from 2013, a reverse in trend of the past couple of years (7.7%
decrease in 2013, down 6% in 2012) and back to growth trend (10% and 41.5%
increase in 2011 and 2010, respectively, from the previous years).
There are some 13
generic pharmaceutics production companies in Israel and the industry employs
9,000 employees.
Good for trade
engagements and all credits.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.87 |
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UK Pound |
1 |
Rs.94.07 |
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Euro |
1 |
Rs.70.19 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
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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 |
|
<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.