MIRA INFORM REPORT

Report No. :	303342
Report Date :	23.01.2015

IDENTIFICATION DETAILS

Name :	ABBOTT LABORATORIES ARGENTINA SA
Registered Office :	Ing Butty 240 -13º, C1001AFB - Ciudad Autónoma de Buenos Aires
Country :	Argentina
Date of Incorporation :	09.11.1937
Legal Form :	Sociedad Anónima
Line of Business :	Subject is a Pharmaceuticals and Health Care Products Company
No of Employees :	570

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

Maximum Credit Limit :	USD 1 000 000
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Argentina	b1	C1

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

Argentina ECONOMIC OVERVIEW

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club.

Source : CIA

Company information

Legal Name:	ABBOTT LABORATORIES ARGENTINA SA
Trade Name:	Abbott Laboratories Argentina
CUIT:	30-50084630-1
Date Created:	1937
Date Incorporated:	09/11/1937
Legal Address:	Ing Butty 240 -13º C1001AFB - Ciudad Autónoma de Buenos Aires
Operative Address:	Ing Butty 240 -13º C1001AFB - Ciudad Autónoma de Buenos Aires
Telephone:	54 11 4229 4396
Fax:	54 11 4229 4338
Legal Form:	Sociedad Anónima
Email:	info@abbottlab.com.ar
Registered in:	DIV. REC. GRANDES CONTRIB. NACIONALES HIPOLITO YRIGOYEN N°370 PLANTA BAJA 1086 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.abbottlab.com.ar
Manager:	James Tait
Staff:	570
Activity:	Pharmaceutical Products Manufacturing Industry
BANKS
	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN AR$
CITIBANK N.A.	8032,8
BBVA BANCO FRANCES S.A.	1276,7
AMERICAN EXPRESS ARGENTINA S.A.	624
BANCO DE GALICIA Y BUENOS AIRES S.A.	0,9
	According to the classification of banking relations of Argentina, the company operates with the following level: 1.
	This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations. This is therefore positive information that will enable the granting of any line of credit.
	There are no rejected checks for the company.
HISTORY
	This is a subsidiary of Abbott Laboratories. Abbott Laboratories is an American pharmaceuticals and health care products company. It has 90,000 employees and operates in over 130 countries. The company headquarters are in Abbott Park, North Chicago, Illinois. The company was founded by Chicago physician Wallace Calvin Abbott in 1888. In 2010, revenues were over $35 billion.
	In 1985, the company developed the first HIV blood-screening test. The company's drug portfolio includes Humira, a drug for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, moderate to severe chronic psoriasis and juvenile idiopathic arthritis; Norvir, a treatment for HIV; Depakote, an anticonvulsant drug; and Synthroid, a synthetic thyroid hormone. Abbott also has a broad range of medical devices, diagnostics and immunoassay products as well as nutritional products, including Ensure, a line of meal replacement shakes; and EAS, the largest producer of performance-based nutritional supplements.
	05/17/14 Abbott gets six floors of drugs in the country RESULT OF THE PURCHASE OF CHILEAN LABORATORY RECALCINE US drugmaker Abbott will keep several plants of drugs in Argentina, now operating under the umbrella of the Argentine International Laboratory -with its subsidiaries Northia, Fada and Efiderma- and Atlas. The change of hands is the result of an operation globally: yesterday, Abbott closed the purchase of Chilean group CFR Pharmaceuticals (founded in 1920 and known as Recalcine Pharmaceutical Corporation) for a total of US $ 3,330 million, which includes a debt US $ 430 million. The acquisition Abbott immediately placed among the top 10 pharmaceutical Latin America, as Recalcine operates in fifteen countries of the region, with sales of US $ 767.9 million last year. It is mainly dedicated to medicines for gynecological use, and generic primarily for respiratory conditions. Chileans in Argentina obtained 12% of their income. At home, had a plant oncology products in Pilar which opened two years ago and another in Liniers (both Northia) plus establishments Fada (Pompeii, Quilmes and La Plata) and Atlas (Villa Park) . While Abbott has a factory in Florencio Varela.
PRINCIPAL ACTIVITY	Abbott Laboratories is a pharmaceuticals and health care products company.
Products/Services description:	Its Established Pharmaceutical Products segment offers branded generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome, intrahepatic cholestasis or depressive symptoms, gynecological disorders, dyslipidemia, hypertension, hypothyroidism, pain, fever, and inflammation; and regulates physiological rhythm of the colon, as well as provides hormone replacement therapy and anti-infective and influenza vaccines. The company’s Diagnostic Products segment provides diagnostic systems and tests, such as immunoassay and clinical chemistry systems; assays for screening and diagnosis for drugs of abuse, cancer, therapeutic drug monitoring, fertility, and physiological and infectious diseases; hematology systems and reagents; genomic-based tests; informatics and automation solutions; and diagnostic systems and tests for blood analysis, as well as instruments that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detects and measures infectious agents. Its Nutritional Products segment offers pediatric and adult nutritional products, such as various forms of prepared infant and follow-on formula. The company’s Vascular Products segment provides coronary, endovascular, vessel closure, and structural heart devices for the treatment of vascular diseases. Abbott Laboratories also offers blood glucose and glucose monitoring systems, test strips, and data management software and accessories for people with diabetes; and medical devices for the eye, such as cataract surgery, LASIK surgery, and contact lens care and dry eye products.
Brands:	Some brands: A HIVAG A PROMISE FOR LIFE A TASTE FOR HEALTH ABA-100 ABA-50 ABBOCATH ABBOJECT ABBOKINASE ABBOPAX ABBOTT ABBOTT A ABBOTT ALCYON ABBOTT CALCI ABBOTT GAIN ABBOTT LABORATORIES ABBOTT MAESTRO ABBOTT SPECTRUM ABBOTT TESTPACK ABBOTT TESTPACK + PLUS ABBOTT-BIOBIT ABBOTTERAPIA ABBO-VAC ABOUND ACCUDYNAMIC ACTEGA ADVANCE ADX AEROCILIN A-GENT ALCYON ALITRAQ ALTERNA ALUVIA ALUVIRAN ANSR APRILIA ARCHITECT ASCERTANE AUSCELL AUSZYME AXSYM BACTIMOS BELIAM BIKLAR BIOBIT BUTTERFLY CAIR CALCIJEX CCX CELL-DYN CLEAR-CATH COBENZIL COFRON COMAR COMBE-HEPAT CRITICAL CARE SYSTEM DAYALETS DAYAMIN DAYAMINERAL DETERMINE DIAL-A-FLO DIAZYL DIBETA DIBOCILL DIPEL DITERA DOCEVIT DRUM-CARTRIDGE DULCET DURIVA EASYMIX EES ENLIVE ENSURE ENSURE F ENSURE PLUS ERYDERM EXCEED FERO-FOLIC-500 FIBRAD FILMTAB FLEXIFLO FLEXIFLO QUANTUM FLEXITAINER FORANE FORENE FORMANCE GAIN GENGRAF GLUCERNA HELIKLAR HEMOSET HUMIRA IBERIN IBEROL IMX INFUSET INHELTHRAN INTRAFLO INTRAFUSOR INTROLITE ISOMIL ISONTYN JEVITY KALETRA KALTIN KENALIN KLARICID LAXAFEN LEUTROL LIFECARE LOFTON LOTOCREME LUTROL LYSOR MABYNEX MALAYO MARIPOSA MEDISENSE MOSIDAL MURINE PLUS NEMADIE NEOSURE NEPRO NORVIR NORVIRA NUMIRA NUTRIMENTUM LF NUVORA OPCION NATURAL OPTAIN
Clients:	The company primarily serves retailers, wholesalers, hospitals, health care facilities, laboratories, physicians’ offices, and government agencies.
	INDEX SACI Paraguay ABBOTT LABORATORIOS DEL ECUADOR CIA LTDA Ecuador
Suppliers:	ABBOTT LABORATORIES DE COLOMBIA SA Colombia ABBOTT LABORATORIOS SA Panama
Operations area:	National & International
The company imports from	Switzerland, Colombia, Ecuador
The company exports to	Paraguay, Panama
The subject employs	570 employees
Payments:	Regular-made on a 35-45 day basis monitored over the last 6 months.
LOCATION
Headquarters :
	Buenos Aires plant located in Florencio Varela annually produces more than 150 million tablets and 120 million capsules. 75% of the production is exported to over 14 countries in Latin America and Canada. The main products produced in this plant are Valcote, Ogastro, Klaricid, Pantomicina and Dayamineral. In 2002 and 2004 he was awarded the Premier Plant Award and is the first facility to obtain certification for the third time Class A.
Branches:	PLANT: AV VALENTIN VERGARA 7989 INGENIERO JUAN ALLAN 1891-BUENOS AIRES
Industry:	Companies in this industry manufacture and process pharmaceutical products. Demand for pharmaceuticals is driven by the desire to cure illness and disease. The profitability of individual companies depends on their ability to discover and market new drugs. Large companies benefit from their economies of scale in research, manufacturing, and marketing. Small companies can compete effectively by specializing in drugs that target one or two specific ailments and by partnering with larger drugmakers. Drugs are chemicals with beneficial biological activity. Modern drug development is an outgrowth of recent research into the specific causes of illness and disease, coupled with advances in chemistry and industrial technology that allow scientists to manufacture chemicals to improve these conditions.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	AR$ $ 831 839 916
Shareholders %:	This is a private company. It is a subsidiary of: Abbott Laboratories Public Traded as NYSE: ABT S&P 500 Component Industry Pharmaceutical Founded 1888; 127 years ago (as Abbott Alkaloidal Company) Founder Dr. Wallace Calvin Abbott Headquarters North Chicago, Illinois, United States
Management:	James Tait, Manager Monica Elizabeth Yoshida, Operations Sra. María Del Carmen Silvana di Lorenzo García Da Rosa, President Sra. Fabiana Casin, VP Sr. Thomas C. Freyman, Director
Related Companies:	The parent company split into three main divisions based on their products: pharmaceuticals, hospital products and nutritional products (Ranjan). The product division structure worked well for their Chicago headquarters, but when international expansion began in Montreal, Canada, in 1931, Abbott adopted an international division structure (Abbott Fact Book). Under this organization, Abbott's international division was responsible for all the foreign operations. Each international office reports to the international management division in Chicago. Another division was added in 1973, called the diagnostics division, which manages all the diagnostics business on a global scale, separate from the international division (Corporate). In 2010, Abbott acquired Solvay SA's pharmaceutical unit (Press). However, Abbott has had to cut jobs to minimize the costs caused by areas of overlap with Solvay (Reuters).
FINANCIAL INFORMATION
	This is a private company which does not make its financial figures public. The following information has been provided by outside sources.
2013 AR$
Revenue	100 000 000
Cash Flow	Good
Exports 2013 FOB DOLLAR
2014	56.235.403
2013	89.301.121
2012	126.788.052
2011	113.644.393
2010	119.778.416
2009	151.933.257
Parent Company USD 2013
Revenue	$21848.0
Gross Profit	$11808.0
Operating Income	$2629.0
Net Income	$2576.0
Diluted EPS	$1.62
Cash at the beginning of the year	10.802.163
Net Operating Cash	$3324.0
Net Investing Cash	$-3929.0
Net Financing Cash	$-6696.0
Net Change in Cash	$-7327.0
Cash at end of the year	$3475.0
Capital Expenditure	$-1145.0
Total Assets	$42953.0
Total Liabilities	$17782.0
LEGAL FILINGS
	There are no legal connected to the subject.
Maximum Credit Provided	USD 1 000 000
SUMMARY
	Abbott Laboratories is a pharmaceuticals and health care products company. It is a subsidiary of the US Abbott public company and has more than 70 years in Argentina. It has recently been in commercial transactions to acquire 6 plants which belonged to RECALCINE Labs. The company's exports have decreased in the last years. However, it is well established in business with good revenues. There are no negative.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular-made on a 35-45 day basis monitored over the last 6 months.
CASH FLOW	Normal
Suggested Credit Line	USD 1 000 000
STATUS	Active
ENTERVIEW
NAME	Silvina Massarini
POSITION	Sales
COMMENTS	She confirmed address, parent company, products, exports, brands, she refused to confirm financial data.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.93.33
Euro	1	Rs.71.49

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	MNL

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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