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MIRA INFORM REPORT
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Report No. : |
484528 |
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Report Date : |
12.01.2018 |
IDENTIFICATION DETAILS
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Name : |
DEXCEL PHARMA TECHNOLOGIES
LTD. |
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Registered Office : |
P.O. Box 50 (3065001), 1 Dexcel Street,
Southern Industrial Zone Or Akiva 3060000 |
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Country : |
Israel |
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Date of Incorporation : |
22.03.1988 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers,
manufacturers, exporters and marketers of branded and generic pharmaceuticals. |
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No. of Employees : |
1,000 [Dexcel Group] |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 2.6% per year during the period 2014-16. 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 2017 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 & address
DEXCEL PHARMA TECHNOLOGIES
LTD.
Telephone 972
4 636 40 00
Fax 972
4 636 40 04
Email: info@dexcel.com
P.O. Box 50 (3065001)
1 Dexcel Street
Southern Industrial Zone
Or Akiva 3060000 Israel
HISTORY
& LEGAL FORMATION
Originally established as a private limited
company incorporated as per file No.
51-128365-7 on the 22.03.1988.
Converted into a public limited company and
registered as per file No. 52-004308-4
on the 23.01.1997.
On a later date re-converted into a private
limited company (keeping the latest registration number).
Originally registered under the name of PERIO
PRODUCTS LTD., which changed to the present name on the 03.04.2001.
SHARE CAPITAL
Authorized share capital NIS 8,300,000.00,
divided into -
830,000,000 ordinary shares of NIS 0.01 each, of
which 454,352,404 shares amounting to NIS 4,543,524.04 were issued.
SHAREHOLDERS
Subject is fully owned by DEXCEL PT
ISRAEL LTD., fully owned by DEXCEL PT HOLDINGS LTD. (registered in
Mauritius), part of DEXXON
Group, owned by Dan Oren.
In 1999, DEXXON Group gained full ownership in
subject after acquiring all of subject’s shares from ISRAEL CHEMICALS LTD.
(85%) and DEG Bank (15%) of Germany, for a sum of US$ 35 million.
DIRECTORS
1.
Dan
Oren, Managing Director & President of DEXCEL Group,
founder,
2.
Ilan Oren, VP Business
Development,
3.
Itzhak (Tzuki) Harush, CFO,
4.
Uri Oren, VP, COO.
BUSINESS
Developers, manufacturers, exporters and
marketers of branded and generic pharmaceuticals. DEXCEL Group
develops, manufactures and market more
than 85 branded and generic products in over 175 dosage forms,
principally in solid oral dosage form, manufacturing 5 billion tablets/capsules
per annum.
Subject operates as the research and development
arm of DEXXON Group.
Some 80% of Group’s sales are for export to over 30 countries.
Sales are to all local health funds, hospitals, drug wholesalers, drugstore
chains and pharmacies, distributors and government agencies.
DEXCEL Group also manufactures for private label, including for SUPER
PHARM, Israel’s largest drugstore chain.
Among local suppliers: MICHAEL CHEMICALS, JOLYBAR, LGM PHARMA, HUBERMAN
& SONS, MOGAL E.T.C., A. ADIRAN, OROKIA ISRAEL, I.S.I. SCIENTIFIC
INSTRUMENTS, BERLIN TECHNOLOGIES, HELION, ZIFRONI CHEMICAL SUPPLIERS, LEMICO,
HANAMAL PRINT, PRIMATIC, SYSAID TECHNOLOGIES, YAIL NOA AGENCIES, EDAL
ENGINEERING, etc.
Advertising offices: GIL-AD COMMUNICATIONS (of G Group).
Operating from premises (headquarters, plant, storage facilities), owned by
DEXCEL Group, on total area of 34,000 sq. meters, in 1 Dexcel Street, Southern
Industrial Zone, Or Akiva. The Group also operates from manufacturing
facilities in Yoqneam (18,800 sq. meters) and a plant, on an
area of 15,000 sq. meters, in 7 Hamarpe Street, Har Hotzvim Industrial Zone,
Jerusalem.
The Group also operate from subsidiaries’ branches in Germany, UK and USA.
Website: www.dexcel.com
Having over 1,000 employees serving DEXCEL Group worldwide, most in Israel.
MEANS
Subject is an “Approved Enterprise” and as such enjoys tax benefits and
State incentives. Subject also enjoys the Chief Scientist Office financial
support.
In 2004, Israel Investment Center (IIC) approved a US$ 7.4 million
investment plan for the expansion of subject’s plant in Or Akiva, and the
expansion of the Group’s plant in Jerusalem, with investment of US$ 3.3
million.
According to a
report from 01.01.2018, the IIC approved an investment of NIS 6 million for
subject’s plant in Jerusalem. Subject is expected to recruit further 25
employees.
DEXCEL’s annual advertising budget
reported several years ago to be NIS 10 million.
Financial data not forthcoming, however known to be financially solid.
There are few charges for limited amounts and unlimited
amounts registered on the company’s assets (financial assets), in favor of
Mizrahi Tefahot Bank Ltd. and The First International Bank of Israel Ltd.
REVENUES
Subject's sales data not forthcoming. DEXCEL Group (which subject and
DEXCEL PHARMA are its major companies) consolidated estimated annual sales
reported in December 2017 to be circa US$ 660 million, around 80% of which is
for export.
OTHER COMPANIES
DEXCEL PHARMA LTD., 100%, U.K.,
DEXCEL PHARMA GMBH, 100%, Germany,
DEXCEL PHARMA INC., 100%, USA.
DEXXON HOLDINGS LTD., parent company, heading the Group, which on top of
development and manufacturing, also operate as agents, importers and marketers
of pharmaceuticals, solely representing, among others: BRACCO (Italy), CHINOIN
(Hungary), SCHOLL (UK), KYOWA MAKKO (Japan), LEO PHARMACEUTICALS (Denmark).
DEXCEL Group also includes:
DEXCEL LTD., developers,
manufacturers, exporters and marketers of generic pharmaceuticals.
DEXCEL PT ISRAEL LTD., parent
company (holding company based on our past), a private limited company
(Registration No. 51313677-0).
DISCOTRADE LTD.
DEXCEL
PHARMA ENTERPRISES LTD.
DEXCEL
PHARMA MARKETING LTD.
DEXXON TECHNOLOGIES 2005 LTD.
BANKERS
According to our records (we could not get subject's
officials confirmation on a/m bank data):
Bank Leumi Le’Israel Ltd., Main Haifa Branch (No.
876), Haifa, account
No. 325800/09.
Mizrahi Tefahot Bank Ltd., Kenyon Orot Branch (No. 438), Or Akiva, account No. 252252.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m accounts.
Bank Hapoalim Ltd, Main Branch (No. 700), Haifa and Central Branch (No.
600), Tel Aviv.
The First International Bank of Israel Ltd.,
branch data unavailable.
CHARACTER AND REPUTATION
Nothing unfavorable learnt.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
DEXCEL Group, founded in 1968, is considered the 2nd largest
pharmaceutical company in Israel, a main drug suppliers in Israel the local
health sector. Its drugs are well-known and leading brands in Israel.
DEXCEL plants are approved by the US FDA, the UK MHRA and the German authorities
and fully comply with current GMP.
In October 2007,
it was reported that pharmaceutics company PERRIGO will market the generic
non-prescription drug "Omeprazole" developed and produced by subject
for treating heartburn, with global annual sales of US$ 600-700 million -by
ASTRA ZENECA. In August 2008, it was
reported that DEXXON doubled its sales following the launch of subject’s
“Omepradex Z” in US markets (a generic version to P&G medicine), capturing
some 40% of the market (joint sales by subject and PERRIGO of US$ 230 million).
As a result, the
Group erected 2 new plants to meet the demand, with investment of NIS 170
million, one in Or Akiva, adjacent to the present location (8,000 sq. meters),
and another plant in Yoqneam (18,800 sq. meters).
On April 1st,
2014 publicly traded company (Tel Aviv Stock Exchange) KITOV PHARMACEUTICALS
announced on an agreement with subject for the development and manufacturing
(incl. FDA approval submission) of a drug for lowering blood pressure in
clinical testing phase III (and option for marketing), as part of a strategic
cooperation between the two companies. In consideration KITOV will pay subject
US$ 2 million in cash and allocate shares in value of US$ 1.5 million in 3
separate placements. For the first rights to market globally the drug and its
commercialization, subject will pay KITOV US$ 500,000.
In June 2015 KITOV
and subject successfully completed the performance of a pilot pharmacokinetic
clinical trial, or Pilot PK Study, which commenced in March 2015 in Ichilov
Medical Center in Tel Aviv.
In May 2016 KITOV issued 3,009,888 shares to DEXCEL LTD. (a
fraction in practice) following the meeting of a milestone in accordance with
the agreement between KITOV and DEXCEL.
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).
Import of
medicines to Israel in 2016 summed up to US$ 750.6 million, compared to US$
744.4 in 2015 and US$ 815.4 million in 2014. Import in the first 4 months of
2017 was 3% higher than in the parallel period in 2016.
The
non-prescription drugs market in Israel is valued at some 15% of the local whole
drugs market, with annual growth rate of circa 15%.
Over 90% of sales
by the local Pharmaceutical Industry are for export.
Sales for exports
of pharmaceuticals (mainly human uses, also veterinary use) in 2016 reached US$
6,905.8 million, compared to export of US$ 6,809.4 million in 2015, US$ 6,485.3
million in 2014, and US$ 6,317.7 million in 2013.
Export in the
first 4 months of 2017 marked 8% decrease compared to 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, 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 63.74 |
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1 |
INR 86.01 |
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Euro |
1 |
INR 76.14 |
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ILS |
1 |
INR 18.68 |
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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VIV |
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Report Prepared
by : |
TPT |
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
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
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.