MIRA INFORM REPORT

 

 

Report No. :

322339

Report Date :

25.05.2015

 

IDENTIFICATION DETAILS

 

Name :

SECURE PHARMACEUTICALS LTD.

 

 

Registered Office :

P.O. Box 299, 1 Arava Street , AirPort City Park, Airport City 7019900

 

 

Country :

Israel

 

 

Date of Incorporation :

16.03.1997

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is a pharmaceutical company, developers, manufactures, exporters and marketers of food supplements of therapeutic solutions, derived from botanical sources, using biochemical agents characterized by functionally selective mechanisms of action in the target tissues.

 

 

No. of Employees :

Not Available

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Israel

A2

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 2013, 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. 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.

 

Source : CIA

 


Company name & address

                                                                                                  

SECURE PHARMACEUTICALS LTD.

(KNOWN AS SE-CURE PHARMACEUTICALS LTD.)

Telephone 972 3 973 11 11

Fax           972 3 973 16 66

Email:       info@se-curepharma.com

P.O. Box 299

1 Arava Street

AirPort City Park

Airport City 7019900 Israel

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-246227-6 on the 16.03.1997. Originally registered under the name SECURE PHARMACEUTICALS AND COSMETICS LTD., which changed to the present name on the 25.11.2003.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 29,400.00, divided into -

       80,000 preference A shares (53,100 shares issued),

       50,000 preference B1 shares (13,400 shares issued),

       150,000 preference B2 shares,

       100,000 preference B3 shares,

       2,560,000 ordinary shares (147,700 shares issued), all of NIS 0.01 each, of which shares amounting to NIS 2,142.00 were issued.

 

 

SHAREHOLDERS

 

1.    Ron Gutterman, 95% of ordinary shares issued,

2.    N.D.R. HOLDINGS LTD., 48% of preference A shares and 5.2% of preference B1 shares issued,

3.    HEARTWOOD LTD., a foreign company, 26% of preference A shares issued,

4.    LEADER HOLDINGS AND INVESTMENTS LTD., a public limited company, traded on the Tel Aviv Stock Exchange, controlled (directly and via controlled companies) by Eliyahu (Eli) Houri, 26% of preference A shares issued (6.4% in practice),

5.    TAMARES HOLDINGS SWEDEN AB, of Sweden, part of TAMARES INVESTMENT Group, owned by Poju Zabludowicz, 56.8% of preference B shares issued,

6.    Yaakov Steinmetz, 5% of ordinary shares issued,

7.    PONTIFAX Funds (via 3 funds), a local private equity fund, 38% of preference A shares issued.

 

DIRECTORS

1.    Ron Gutterman, Chairman and General Manager,

2.    Noga Rachmani,

3.    Doron Vadai,

4.    Iftach Seri,

5.    Ms. Ayelet Beres,

6.    Lior Ben-Artzi.

 

 

BUSINESS

 

A pharmaceutical company, developers, manufactures, exporters and marketers of food supplements of therapeutic solutions, derived from botanical sources, using biochemical agents characterized by functionally selective mechanisms of action in the target tissues.

 

Currently having 6 botanical drug candidates, targeting women’s health and osteoporosis management, benign hyperplasia (BPH) management (male health), burn injury management and dental bone rejuvenation.

 

Subject is currently in clinical stages (phase I, II and III) for its products (under FDA's botanical route).

 

Operating from premises, in 1 Arava Street, AirPort City Park, Airport City (situated in vicinity to the Ben Gurion Intl. Airport), and from manufacturing plant in Industrial Park Dalton, Ramat Dalton.

 

Number of employees not forthcoming.

 

 

MEANS

 

According to a report from December 2010, subject raised US$ 14 million from PONTIFAX and TAMARES. Prior to that raise, reportedly subject raised US$ 9 million.

 

According to the financial statements of LEADER (6.4% in subject), subject's shares book value as of 31.12.2014 is NIS 1.186 million (was valued at NIS 4.93 million as of 31.12.2013).

 

Subject is an “Approved Enterprise” and as such entitled for State support, grants and tax relief. In 2003 and in July 2014 the Israeli Investment Centre (IIC) approved US$ 160,000 and NIS 2.5 million investment plans, respectively, for the expansion of subject’s plant in Dalton Park.

 

Other financial data not forthcoming.

 

There are 13 charges for unlimited amounts, as well as 2 charges for the total sum of US$ 670,000 registered on the company's assets (financial assets, fixed assets, equipment and vehicles), in favor of Israel Discount Bank Ltd., Union Bank of Israel Ltd., Bank of Jerusalem Ltd. and a company (last 2 charges placed February-March 2009).

 

REVENUES

 

Actual sales figures not forthcoming.

According to a report from December 2010, sales of food supplements were

US$ 25 million.

 

 

OTHER COMPANIES

 

LEADER HOLDINGS AND INVESTMENTS LTD., an investment company in a variety of fields including capital markets, real estate, technology and biotech, media and more. Publicly traded on the Tel Aviv Stock Exchange, current market value US$ 33.4 million.

 

TAMARES INVESTMENT Group, an investment Group owned by Poju Zabludowicz, a Finnish business magnate and philanthropist based in London. The Sunday Times Rich List 2012 of the richest people in the United Kingdom ranked him 42nd, with a personal net worth of £1,500 million. Zabludowicz, via TAMARES and other companies, has other investments in Israel, including in KNAFAIM HOLDINGS LTD., a holding company, operating in the aviation and tourism field, holding control in EL AL AIRLINES, Israel's largest airliner.

 

PONTIFAX Venture Capital Funds, operating 3 investment funds which manage a total of US$ 205 million, specializing in start-ups in the pharmaceutical and life sciences fields with a focus on medical devices companies based in Israel.

 

 

BANKERS

 

Bank data not forthcoming.

 

 

CHARACTER AND REPUTATION

Nothing unfavorable learned.

 

Subject's officials refused to disclose data besides general business activity.

 

PONTIFAX is among the leading local bio/pharmaceutical investment funds.

 

Israel is considered one of the leading countries in the world in terms of investment in the Life Science and Biotechnology industry.

 

There are some 260 biotechnology companies operating in Israel as of 2015, 220 of which are Israeli, the rest are subsidiaries of foreign companies. The volume of investments in R&D in the biotechnology field is around US$ 400 million per annum, placing Israel 5th in the world in terms of investment in commercial R&D in biotechnology in respect of the GDP.

 

As of 2014, there are some 1,100 companies in the Life Science sector in Israel, of which 70% are in the medical devices fields, according to the Israel Export Institution estimation.

Export of medical devices rose by 11% in 2014 from 2013, and summed up to US$ 2 billion.

 

There are over 33,000 employees in the Life Science industries, in over 1,200 companies (including start-ups), of which 62% deal in medical devices, 12% in pharmaceuticals, 12% in biotechnology, 7% in HealthCare IT and 7% in Life Science Services.

 

Life Science start-ups raised some US$ 500 million in 2012 (26% of total raisings by local start-ups), 28% higher than 2011 and 44% higher than 2010, based on IVC research firm data. 50%-70% of the investments are in early stages start-ups.

 

Investments mix within the Life Science area was: some 60% in medical devices, 17% in biotechnology, 11% in pharmaceuticals, and 7% in HealthCare IT.

 

Break-down in the medical devices: 42% develop therapy implant and consumable solutions, 21% develop medical equipment, 12% develop diagnostic solutions, 8% develop solutions in the imaging area, and 7% develop solutions in the monitoring field.

 

2012 marked a record in terms of exist in the Life Science area (12 exits in total volume of US$ 1.2 billion), a trend which has been continuing in 2013.

 

 

SUMMARY

 

Subject appears to be suitable for trade relations, and may be creditworthy. However, considering the lack of data from subject's officials at this stage, we prefer to remain cautious and recommend dealings on secured basis.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.67

Euro

1

Rs.70.93

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.