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MIRA
INFORM REPORT
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Report No. : |
488635 |
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Report Date : |
02.02.2018 |
IDENTIFICATION DETAILS
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Name : |
WAVELENGTH PHARMACEUTICALS LTD |
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Formerly Known As : |
MONOLOM LTD |
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Registered Office : |
P.O. Box 2589, Bnei Brak (5112402), P.O. Box 3593, Beer Sheva (8413502), 29-31 Lehi Street, Industrial Zone, Bnei Brak, 5120052 |
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Country : |
Israel |
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Date of Incorporation : |
29.05.2017 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
A holding company. Subject holds
WAVELENGTH ENTERPRISES LTD. (formerly PERRIGO API LTD, aka CHEMAGIS),
developers, manufacturers, marketers and exporters of Active Pharmaceutical
Ingredients (APIs) and select Finished Dosage Forms (FDFs). |
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No. of Employees : |
Not available |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
NB |
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Credit Rating |
Explanation |
Rating Comments |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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Status : |
New Business |
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Payment Behaviour : |
Unknown |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source : CIA |
Company name and address
Correct Name: WAVELENGTH PHARMACEUTICALS LTD.
Telephone 972 3 577 38 80 (Bnei Brak)
972
8 850 91 11 (Neot Hovav)
Fax 972 8 657 22 21(Neot Hovav)
P.O.
Box 2589, BNEI BRAK (5112402)
P.O.
Box 3593, BEER SHEVA (8413502)
29-31
Lehi Street
Industrial
Zone
BNEI BRAK,
5120052, ISRAEL
HISTORY & LEGAL FORMATION
A private limited company, incorporated as
per file No. 51-566648-5 on the 29.05.2017 under the name MONOLOM LTD., which
changed to the present name on the 04.09.2017.
Subject was established following the
acquisition of WAVELENGTH ENTERPRISES LTD. (formerly PERRIGO API LTD – known as
CHIMAGIS) which was completed in November 2017.
SHARE CAPITAL
Authorized share capital 0.00 (no face value), divided into:-
10,000,000 ordinary shares of 0.00 each (no face value), of which 100,000
shares were issued.
SHAREHOLDERS
Subject is fully owned by WAVELENGTH
INTERMEDIATE SARL, fully owned (possibly in chaining) by SK CAPITAL PARTNERS, a
US private investment firm.
In November 2017 SK CAPITAL completed the
acquisition of PERRIGO API from PERRIGO for US$ 110 million. Following the
acquisition, PERRIGO API LTD.’s name changed to WAVELENGTH ENTERPRISES LTD.
DIRECTORS
1. Iftach
Seri, General Manager,
2. Aharon
Yaari,
3. Itzhak
Krinski,
4. Miron
Mann,
5. Stephen
D’Incelli,
6. Aaron
Charles Davenport,
7. Berry
Wane Penny.
Directors 5-7 are foreign citizens.
BUSINESS
A holding company. Subject holds WAVELENGTH
ENTERPRISES LTD. (formerly PERRIGO API LTD, aka CHEMAGIS), developers,
manufacturers, marketers and exporters of Active Pharmaceutical Ingredients
(APIs) and select Finished Dosage Forms (FDFs).
95% of WAVELENGTH
ENTERPRISES’ sales are for export to over 25 countries.
Sales are to
generic and branded pharmaceutical companies, including to affiliate PERRIGO
manufacturers.
Operating from WAVELENGTH headquarters
offices, in 29-31 Lehi Street, Industrial Zone, Bnei Brak (PERRIGO Group was
operating from on large area, including 1,200 sq. meters which served PERRIGO
API, but we do not know the current place occupied by subject’s Group), and
from WAVELENGTH ENTERPRISES plant, on an area of 55,000 sq. meters, in Neot
Hovav Eco-industrial Park, Ramat Hovav (area code 8551600), south of Beer
Sheva.
Also operating an office in the USA.
Website: www.wavelengthpharma.com
Number of employees in WAVELENGTH Group not
forthcoming.
Had 300 employees in PERRIGO API, while still
under PERRIGO Group in 2016.
MEANS
WAVELENGTH ENTERPRISES (then PERRIGO API)
was acquired by SK CAPITAL in November 2017 in consideration of US$ 110
million.
According to
PERRIGO CO.'s financial statements, total assets attributed to Other Segment
(formerly API Segment), which PERRIGO API was a major part of, as of
31.12.2016: US$ 304.1 million (US$ 213.1 million as of 31.12.2015).
PERRIGO API used to be an “Approved
Enterprise” and as such enjoying tax benefits and State incentives (we do not
know the current status following the change in ownership).
Other financial data not forthcoming
There are 2 charges for unlimited amounts registered on the company's
assets (all assets), in favor of a foreign company (charges placed November
2017)..
REVENUES
Sales by PERRIGO’s
'Other' Segment (which comprises mainly of Group's API activities, including
PERRIGO API – until 2014 was called API Segment):
2014 sales were
US$ 119.3 million.
2015 sales were
US$ 98.0 million.
2016 sales were
US$ 78.5 million.
According to
PERRIGO's officials, PERRIGO API has been profitable.
OTHER COMPANIES
WAVELENGTH ENTERPRISES LTD. (formally
PERRIGO API - known as CHEMAGIS), established 1986.
SK CAPITAL PARTNERS, an American New York
based private investment firm, focusing on investments in materials, chemicals
and pharmaceuticals sectors. Managing some US$ 5 billion.
BANKERS
Bank data not forthcoming.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
So far subject's officials disclosed only general data. They asked us to
leave our contact details– which we did – so far without response.
In case they return to us with further data, we will update you
accordingly.
WAVELENGTH
ENTERPRISES, aka CHEMAGIS, is veteran and well-known in its field. Its products
comply with the requirements and standards of leading health authorities
including the FDA.
Over 90% of sales
by the local Pharmaceutical Industry are for export.
According to the
Central Bureau of Statistics, sales for exports of pharmaceuticals (mainly
human uses, also veterinary use) in 2016 reached US$ 7,538 million, compared to
export of US$ 6,905.8 million in 2016, US$ 6,809.4 million in 2015, US$ 6,485.3
million in 2014, and US$ 6,317.7 million in 2013.
Import of
pharmaceutical products to Israel in 2016 reached US$ 2,006.5 million, compared
to US$ 1,916 million in 2015 and US$ 1,899 million in 2014. Import in the first
11 months of 2017 reached US$ 1,966.6 million, 7% higher than in the parallel
period in 2016.
There are some 13
generic pharmaceutics production companies in Israel and the industry employs
9,000 employees.
SUMMARY
Notwithstanding
the lack of updated data from subject's officials, being part of SK CAPITAL,
considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.61 |
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1 |
INR 89.32 |
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Euro |
1 |
INR 78.95 |
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ILS |
1 |
INR 18.72 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.