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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

499497

Report Date :

27.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

EGYPTIAN INTERNATIONAL PHARMACEUTICAL INDUSTRIES CO SAE  (EIPICO)

 

 

Registered Office :

3 El Moaz Le Din Allah Street, Takseem Asmaa Fahmy, Ard El Golf, Nasr City, P O Box: 8171, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

30.12.2017

 

 

Date of Incorporation :

Subject’s operations date back to 1982, however it was registered in March 1985

 

 

Com. Reg. No.:

11116, Ismailia

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

·         Subject produces over 260 different products covering 24 therapeutic groups.

·         The main line of products focuses on prescribed drugs. Of these products 32 percent are produced under licence from international pharmaceutical companies.

 

 

No. of Employees :

3,600

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A+

 

Credit Rating

Explanation

 

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Egypt

C1

C1

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

 

EGYPT - ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Agriculture, hydrocarbons, manufacturing, tourism, and other service sectors drove the country’s relatively diverse economic activity.

Despite Egypt’s mixed record for attracting foreign investment over the past two decades, poor living conditions and limited job opportunities have contributed to public discontent. These socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 has restricted economic growth and failed to alleviate persistent unemployment, especially among the young.

In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency, introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will need to make a sustained effort to implement a range of business reforms, however, to induce foreign and local investment in manufacturing and other labor-intensive sectors.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : EGYPTIAN INTERNATIONAL PHARMACEUTICAL INDUSTRIES CO

                                                              SAE (EIPICO)

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Start Date                                             : 1982

Registration Date                                  : March 1985

Commercial Registration Number           : 11116, Ismailia

Tax Card Number                                  : 100-258-263

Issued Capital                                       : £E 79,364,000

Paid up Capital                                     : £E 79,364,000

Total Workforce                                                : 3,600

Activities                                               : Production of pharmaceuticals

Financial Condition                                : Good

Payments                                             : Regular

Operating Trend                                    : Steady

COMPANY NAME

 

EGYPTIAN INTERNATIONAL PHARMACEUTICAL INDUSTRIES CO SAE (EIPICO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : 3 El Moaz Le Din Allah Street

Area                 : Takseem Asmaa Fahmy, Ard El Golf, Nasr City

 

PO Box                        : 8171

 

Town                : Cairo

Country : Egypt

 

Telephone         : (20-2) 24143550

Facsimile          : (20-2) 24174528 / 24143800

Mobile              : (20-10) 1460662 / (20-102) 2205737

Email                : eipico@eipico.com.eg / eipico@rite.com

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Cairo.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       4 Ahmed Shafik Street                                                                      Office premises

Corniche El Nil

Shoubra

PO Box: 22

Cairo

Tel: (20-2) 22037019 / 2035265 / 2035747

 

·       Osman Ibn Affan Street                                                                    Office & factory premises

Industrial Area B1

Sharkeya

PO Box: 149

10th of Ramadan City

Tel: (20-554) 364376 / 364378 / 363480 / 361663 / 499199 / 499306

Fax: (20-554) 364377

 

·       2 Wagih Pacha Street                                                                       Office & Distribution centre

Ganaclis

     Alexandria

     Tel: (20-3) 5866974 / 5706974

     Fax: (20-3) 5703688

 

·       63 Benha/Zagazig Agri Road                                                             Office & Distribution centre

Benha

Kaliubeya

PO Box: 76

Tel: (20-13) 3229020 / 3245504

Fax: (20-13) 3229020

 

·       Mostawat & Makhazen Agri Development & Credit bank                     Office premises

Minia

Tel: (20-86) 2341474 / 2341480

Fax: (20-86) 2351480

 

·       Rawafie Al Kousair                                                                           Office & Distribution centre

South Souhag

PO Box: 64

Souhag

Tel: (20-93) 2330465 / 2330462

Fax: (20-93) 2330462

 

·       Mohamed Farid Street                                                                      Office & Distribution centre

Tanta

     Gharbeya

     Tel: (20-40) 3335924

     Fax: (20-40) 3335926

 

·       13 El Emam El Ghazaly Street                                                           Office & Distribution centre

Mansoura

     Dakahleya

     Tel: (20-50) 326211

     Fax: (20-50) 326211

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Dr Ahmed Borhan El Din Ismail                                                         Chairman

 

·       Dr Mohamed Farouk Essmat                                                             Director

 

·       Omar El Ahmady Mohamed Eissawy                                                 Director

 

·       Dr Hamdy El Sayed                                                                          Director

 

·       Dr Maher Domiaty                                                                            Director

 

·       Dr Tamer Mohamed Essam                                                               Director

 

·       Dr Atef Hassan Al Naqali                                                                  Director

 

·       Dr Gamal Awad                                                                                Director

 

·       Dr Elsayed Obeid                                                                             Director

 

·       Ali Ibrahim Raghib                                                                            Finance Manager

 

·       Azza Attia                                                                                         Public Relations Manager

 

·       Dr El Sayed Saber                                                                            Production Manager

 

·       Badr Omar El Ahmady                                                                      Research Manager

 

·       Magid Abdulrahman Hanfi                                                                 Accounts Manager

 

·       Mohamed Abdul Ghaffar                                                                   Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1982, however it was registered in March 1985

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 11116, Ismailia

 

Tax Card No.                : 100-258-263

 

Ind. Registry No.          : 0053380

 

Issued Capital              : £E 79,364,000

 

Paid up Capital            : £E 79,364,000

 

Name of Shareholder (s)                                                                         Percentage

 

·       Arab Co for Drug Industries & Medical Appliances (ACDIMA)                   43.54%

24 El Fawala Street

Cairo

Tel: (20-2) 33914576

 

·       Medical Union Syndicate Inv. Co.                                                              5.62%

 

·       Egyptian businessmen & private investors                                               50.84%

 

 

OPERATIONS

 

Activities:         EIPICO produces over 260 different products covering 24 therapeutic groups. The main line of products focuses on prescribed drugs. Of these products 32 percent are produced under licence from international pharmaceutical companies. The therapeutic groups are:

 

1.     Anaesthetics

2.     Analgesics, Antipyretics & Antirheumatics

3.     Anthelmintics & Schistosomicides

4.     Anti-infectives

5.     Antidyesntrics and Enterostatics

6.     Antihistaminics

7.     Antimalarial Drugs

8.     Blood substitutes and restoratives

9.     Cardiacs and Vascularetics

10.  Cathartics (laxatives)

11.  Cholinergic Muscle Stimulants

12.  Acting Drugs (Cns)

13.  Dermatologicals

14.  Endocrine system drugs

15.  Gastrointestinal drugs

16.  Lipotropics & Geriatrics

17.  Opthalmics

18.  Orodentals

19.  Otic preparation

20.  Pulmonics

21.  Spasmolytics

22.  Urologics

23.  Vaginetics

24.  Vitamins and Minerals

 

Subject is ISO 9001 & ISO 14001 accredited.

 

In 1996 the company completed the erection of its expansion project which started production in February 1996 at a total cost of £E 82 million and added 70 percent to the surface of the company’s production area. The expansion was self financed and added 25 products to the local market and enabled the company to have room for production of updated and sophisticated products especially in the sterile area.

 

During 2002 subject completed work on expansion to its existing factory in the 10th of Ramadan City. The project increased the production facilities by an area of 37,500 square metres.

 

Principal Agents:         Smith Kline Beecham                             United States of America

                                    Roche                                                   Switzerland

                                    Merck Sharp & Dohme                          United States of America

                                    Upjohn                                                  United States of America

                                    Allergan                                                United States of America

                                    Serono                                                 Italy

                                    Lilly                                                      United Kingdom

                                    Riker                                                     United Kingdom

                                    Rhone Poulenc                                      France

                                    Hek Pharma                                          Germany

                                    Pharmacia                                             Sweden

                                    Biogena                                                Denmark

                                    Shing Poong                                         South Korea

                                   

Import Countries:         Germany, the United Kingdom, Switzerland, France, Denmark, Sweden, Italy, the United States of America and South Korea.

 

Export Countries:         Subject exports to over 30 countries worldwide, including Benin, Eritrea, Nigeria, Cameroon, Ethiopia, Uganda, Chad, Kenya, Sudan, Djibouti, Libya, Tunisia, Romania, Russia, Ukraine, Azerbaijan, Kuwait, Saudi Arabia, Bahrain, Oman, Syria, Iraq, Pakistan, United Arab Emirates, Jordan, Palestine, Uzbekistan, Kazakhstan, Qatar and Yemen.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,600 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E millions)

 

Balance Sheet

30/12/17

30/12/16

30/12/15

30/12/14

30/12/13

Assets

Cash & ST Investments

678.69

585.67

372.94

366.38

472.73

Total Accounts Receivable

644.14

464.35

415.82

326.67

298.50

Inventories

1022.52

644.13

647.67

685.28

540.20

Other Current Assets

N/A

N/A

N/A

N/A

N/A

Total Current Assets

2345.35

1694.15

1436.43

1378.32

1311.43

Net Property Plant & Equipment

925.19

973.43

971.54

961.38

904.53

Total Investments and Advances

47.87

47.87

47.87

47.87

47.87

Intangible Assets

N/A

N/A

N/A

N/A

N/A

Other Assets

N/A

N/A

N/A

N/A

N/A

Total Assets

3350.78

2766.32

2525.22

2475.44

2370.21

Liabilities & Shareholders’ Equity

ST Debt & Current Portion LT Debt

136.61

9.29

0.22

0.00

0.00

Accounts Payable

80.22

55.95

39.04

46.13

37.37

Income Tax Payable

149.72

109.60

76.34

N/A

N/A

Other Current Liabilities

507.33

783.90

717.26

721.00

681.95

Total Current Liabilities

760.54

866.26

772.21

783.91

719.32

Long-Term Debt

0.00

0.00

0.00

0.00

0.00

Deferred Taxes

65.37

64.07

65.76

65.13

57.99

Other Liabilities

N/A

N/A

N/A

N/A

N/A

Total Liabilities

827.78

931.68

839.30

850.32

778.50

Non-Equity Reserves

N/A

N/A

N/A

N/A

N/A

Preferred Stock (Carrying Value)

0.00

0.00

0.00

0.00

0.00

Common Equity

2523.01

1834.63

1685.92

1625.13

1591.71

Total Shareholders’ Equity

2523.01

1834.63

1685.92

1625.13

1591.71

Accumulated Minority Interest

1.87

1.36

1.32

1.27

1.19

Total Equity

2523.01

1834.63

1685.92

1625.13

1591.71

Liabilities & Shareholders’ Equity

3350.78

2766.32

2525.22

2475.44

2370.21

 

Statement of Income

 

Sales/Revenue

2527.23

1969.10

1696.98

1578.03

1357.13

Cost of Goods Sold

1567.52

1224.88

1152.50

1059.11

916.42

Gross Income

959.70

744.22

544.48

518.92

440.71

SG&A Expense

74.43

73.54

64.29

76.36

60.77

Other Operating Expense

N/A

N/A

N/A

N/A

N/A

EBITDA

723.73

604.44

460.35

430.28

361.03

Depreciation and Amortization

Expense

N/A

N/A

N/A

N/A

N/A

EBIT(Operating Income)

723.73

604.44

460.35

430.28

361.03

Net Non-Operating Income (Expense)

1.73

0.00

0.00

0.00

0.79

Interest Expense

174.45

30.52

38.84

37.05

64.25

Net Unusual Expense (Income)

53.28

-6.60

-6.42

-5.40

-0.78

Pre-tax Income

900.21

635.49

499.57

467.69

426.85

Income Taxes

211.34

147.74

106.32

125.02

97.03

Equity in Earnings of Affiliates

N/A

N/A

N/A

N/A

N/A

Minority Interest Expense

-0.51

-0.26

-0.31

-0.31

-0.24

Net Income

688.87

487.75

393.25

342.67

329.82

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

·       Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 33904554

Fax: (20-2) 33908992

 

·       Commercial International Bank (CIB)

Nile Tower Building

21-23 Giza Street

PO Box: 2430

Cairo

Tel: (20-2) 25703043

Fax: (20-2) 25703172 / 25072691

 

·       Blom Bank Egypt

15 Abou El Feda Street

Zamalek

Cairo

Tel: (20-2) 27368045

 

 

PAYMENT HISTORY

 

Regular

 

 

GENERAL COMMENTS

 

EIPICO has expanded to become the largest pharmaceutical company in Egypt commanding an 8 percent share of the local market and nearly 25 percent contribution of the total Egyptian export of drugs.

 

The subject and its shareholders/owners have been searched in the following databases; Office of Foreign Assets Control (OFAC), United Nations Security Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse could be found on the exact names listed within the report.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.13

UK Pound

1

INR 91.96

Euro

1

INR 80.34

EGP

1

INR 3.67

Note: Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

Report Prepared by :

NIT

 

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

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)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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