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MIRA
INFORM REPORT
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Report No. : |
496369 |
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Report Date : |
13.03.2018 |
IDENTIFICATION DETAILS
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Name : |
LGM PHARMA (YES PHARMA) LTD. |
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Formerly Known As : |
YES PHARMA LTD |
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Registered Office : |
15 Hamelacha Street, Har Tuv A Industrial Park, Nocham Enterprises HAR-TUV, 9980101 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2015 |
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Date of Incorporation : |
17.01.2005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Agencies in the
field of cGMP pharma ingredients to leading pharmaceutical companies,
including pharma intermediates, Active Pharmaceuticals Ingredient's (APIs),
formulations to biopharmaceuticals. |
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No. of Employees : |
13 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (30.09.2017) |
Current Rating (31.12.2017) |
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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
RE: LGM PHARMA
LTD.
Correct Name: LGM PHARMA (YES
PHARMA) LTD.
(Also
trading as LGM PHARMA and/or YES PHARMA)
Telephone 972
2 992 99 33
Mobile 972
54 432 60 38
Fax 972 2 992 99 55
Email: info@yespharma.com;
info@lgmpharma.com
15 Hamelacha Street
Har Tuv A Industrial
Park
Nocham Enterprises Har-Tuv, 9980101, Israel
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per file No. 51-363979-9 on
the 17.01.2005.
Originally registered under the name YES PHARMA LTD., which changed to
the present name on the 13.04.2015.
SHARE CAPITAL
Authorized share
capital NIS 10,000.00, divided into -
1,000,000 ordinary
shares of NIS 0.01 each,
of which 10,000
shares amounting to NIS 100.00 were issued.
SHAREHOLDERS
Subject is fully
owned by YES PHARMA ISRAEL (2008) LTD., owned by NEW HARBOR CAPITAL MANAGEMENT
LLC, an American private equity firm.
Gideon Schurder,
who held 100% in subject, sold most of his holdings to NEW HARBOR in the end of
2017, and is left with 13% (in a company which has holdings in NEW HARBOR).
Subject’s employees also have minor holdings.
DIRECTORS
1.
Gideon Schurder, General Manager, born in 1976,
2.
Jocelyn Stanley, of the USA, Partner in NEW HARBOR,
3.
Tom Formolo, Partner in NEW HARBOR.
BUSINESS
Agencies in the
field of cGMP pharma ingredients to leading pharmaceutical companies, including
pharma intermediates, Active Pharmaceuticals Ingredient's (APIs), formulations
to biopharmaceuticals.
Also international
traders in raw materials for the pharmaceutical field.
All sales are on a
commission basis.
Almost 100% of
sales are export.
All of subject’s
suppliers are foreign.
Among customers:
TEVA PHARMACEUTICAL INDUSTRIES, DEXCEL, TARO PHARMACEUTICAL INDUSTRIES, PERRIGO
ISRAEL, CTS CHEMICAL INDUSTRIES, RAFA LABORATORIES, TRIMA ISRAEL PHARMACEUTICAL
PTODUCTS MAABAROT, REKAH PHARMACEUTICAL, VITAMED, LYCORED, FOAMIX, AMBROSIA
SUPHERB, JERUSALEM PHARMACEUTICALS, BEIT JALA PHARMACEUTICALS, BIRZEIT
PHARMACEUTICALS, SAM-ON, etc.
Sole local agents
of:
CIPLA, NICHOLAS
PIRAML, INDSWIFT, RANDEXY, BENZOCHEM, all of India,
STEROID, of Italy,
INTERQUIM, CRYSTAL
PHARMA, both of Spain,
ACG, of India (in
the capsule field).
Operating from
rented premises, on an area of 520 sq. meters, in 15 Hamelacha Street, Har Tuv
A Industrial Park, Nocham Enterprises Har-Tuv, Mateh Yehuda
Regional Council, situated near Beit Shemesh. Also operating from offices and
facilities in the USA (headquarters in Erlanger, KY).
Website: www.yespharma.com;
www.lgmpharma.com
Note: Subject left the
premises Sofri House (No. 33), it is no longer relevant.
Having 13
employees (had 18 employees in 2017).
MEANS
Work is based on
orders.
Subject's B/S
shows (last obtainable):
NIS
31.12.2014 31.12.2015
ASSETS
Current assets
Cash and cash equivalents 634,804 251,863
Customers 8,780,499 9,699,037
Stock 5,276,051 8,228,276
Other debtors and current assets 10,180,048 7,453,716
24,871,402 25,632,892
Fixed assets (net) 351,359 297,717
25,222,761 25,930,609
========= =========
LIABILITIES
Current
liabilities 13,150,789 10,674,822
Non-current
liabilities 2,190,277 1,755,808
Equity 9,881,695 13,499,979
25,222,761 25,930,609
========= =========
There is 1 charge
for an unlimited amount registered on the company assets (financial assets), in
favor of Bank Hapoalim Ltd. Charge placed in 2017.
REVENUES
Subject's solo sales in (NIS currency):
Statement
of Income
NIS
Year
ended 31.12
2014 2015
Revenues 99,609,398 103,612,165
Gross profit 21,241,871 17,919,984
Operating profit 17,116,808 12,039,904
Profits before taxes on income 17,358,416 11,748,284
Net profit 12,658,030 8,618,284
========== ==========
2016 sales claimed to be NIS 106,000,000, almost 100% were for export.
2017 sales claimed to be NIS 96,000,000, almost 100% were for export.
OTHER COMPANIES
YES PHARMA ISRAEL 2008 LTD., parent company, agencies in Israel for
pharmaceutical raw materials, operating on a very low volume.
STEREOKEM INC,
33.3%, USA, developers of chemical processes for the manufacture of active
pharmaceutical ingredients (APIs).
LGM PHARMA LLC,
USA.
BANKERS
Bank Hapoalim
Ltd., Jerusalem Business Branch (No.436), Jerusalem, account
No. 222000.
Bank Leumi
Le'Israel Ltd., Har Hotzvim Business Branch (No. 968), Jerusalem, account No.
566200/73.
A check with the
Central Banks' database did not reveal anything detrimental on subject’s a/m
accounts.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Subject is ISO
9001:2008 certified.
NEW HARBOR
CAPITAL, who acquired control in subject in November 2017, is a Chicago-based
private equity firm with over US$400 million of capital under management,
focused on investing in lower middle market, growth-oriented healthcare,
education and business services companies. Since 2000, the NEW HARBOR team has
completed over 200 investments.
In February 2010 subject announced on the implementation of ERP/CRM System
(Priority, carried out by ESHBEL TECHNOLOGIES) into their infrastructure.
In 2013 subject
acquired of 33.3% of Santa Clara, CA, USA based STEREOKEM INC., in return for
an investment of US$2.5 million. Much of STEREOKEM's business is concentrated
in India, via its fully owned subsidiary in Hyderabad, India.
Over 90% of sales
by the local Israeli Pharmaceutical Industry are for export.
Sales for exports
of pharmaceuticals (mainly human uses, also veterinary use) in 2017 reached US$
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.
SUMMARY
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 65.02 |
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1 |
INR 90.12 |
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Euro |
1 |
INR 80.09 |
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ILS |
1 |
INR 18.85 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
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
·
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.