Agis Industries (1983) Ltd. is Israel's second largest pharmaceutical
company. It is strategically positioning itself to move from being a
local diversified pharmaceutical and consumer products enterprise
into a specialized global pharmaceutical company.
The company has focused for several years on an effort to consolidate
and expand its activities overseas, through the sale of
pharmaceuticals in the US by an American subsidiary, and the sale of
APIs to the global generic pharmaceuticals industry, mainly in the
US. Agis (AGIS:TASE) since 1992, is a public company, listed on the
Tel-Aviv Stock Exchange. The company, while well known to the Israeli
public, is nearly unknown to international investors.
Company Description
Agis employs . 1,900 workers, of which . 600 are in the U.S.
Sales Analysis
Sales Breakdown in 2001 by Market Segment
Recent Share Price Development
Key Ratios
Summary
Its shares have recently been upgraded to the Tel-Aviv 100 providing
greater investor visibility and liquidity.
We believe that Agis shares provide an interesting vehicle for
investors to participate, at a reasonable valuation, in Israel's
growing generic industry. The shares are yielding 4.2% having
recently distributed $0.43 a share dividend. All of these factors add
to Agis' investment attractiveness.
The Agis Group's principal activities are manufacturing, marketing
and importing of pharmaceuticals; developing and manufacturing of
active pharmaceuticals ingredients (API); importing and marketing of
medical equipment, paramedical products, and medical diagnostic
products; manufacturing and marketing of drugs, cosmetics, toiletries
and consumer goods; and manufacturing of bar soap, cleaning products,
detergents, powdered laundry detergents, toiletries and baby
products. It operates four manufacturing facilities in Israel and one
in the USA. It sells its products mainly in Israel and the USA. Drug
sales accounted for 66% of 2001 revenues; consumer products 28% and
medical applications 6%.
During the year ended December of 2001, sales at Agis Industries
(1983) Limited were US$251.8 million, This was the fifth consecutive
year of sales increases at Agis since 1996, sales have increased by
71%.
Pharmaceuticals Sold in Israel 30%
Generic Pharmaceuticals in U.S.A 25%
Active Pharmaceutical Ingredients (API) 12%
Diagnostics and Medical Equipment 6%
Consumer Products 27%
The share price was up 37.9% to $10.22 over the past 13 weeks. . In
the 12 months ending 9/30/02, earnings totaled $0.43 per share. The
share have recently traded at a Price / Earnings ratio of 24. These
12 month earnings are substantially greater than the earnings per
share achieved during the calendar year ending last December, when
the company reported earnings of 0.17 per share. Earnings per share
fell 61.4% in 2001 from 2000.
The shares are currently trading at 1.12 times sales and at 1.41
times book value.
Agis' strategy is clearly aimed at increasing its overseas sales. It
has shown its ability to sell the American market and here is where
we anticipate major growth in 2003.