Taro Pharmaceutical Industries Reports Second Quarter, Six-Month Results.HAWTHORNE, N.Y.--(BUSINESS WIRE)--July 29, 1997--Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS:TAROF) Tuesday reported record sales for the second quarter and the first six months of 1997. Second quarter 1997 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 10% to a record $15,570,000, from $14.1 million for the second quarter of 1996. Net income for the quarter decreased to $407,000, or $0.04 per share, from $550,000, or $0.05 per share, for the second quarter of the prior year. For the six months ended June 30, 1997, sales were a record $28,253,000, a 6% increase over sales of $26,776,000 for the first half of 1996. Net income for the 1997 six-month period was $482,000, or $0.05 per share, down from $776,000, or $0.07 per share, for the same period in 1996. The decrease in net income is largely attributable to a price reduction on one of the company's key products, Clotrimazole clotrimazole /clo·trim·a·zole/ (klo-trim´ah-zol) an imidazole derivative used as a broad-spectrum antifungal agent. clo·trim·a·zole n. Cream USP USP - unique sales point , 1%. "Unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. increased significantly on this product, while dollar sales decreased, reducing gross profit by approximately $1.5 million in the first half of 1997," stated Rebecca Pike pike, in zoology pike, common name for the family Esocidae, freshwater game and food fishes of Europe, Asia, and North America. The pike, the muskellunge, and the pickerel form a small but well-known group of long, thin fishes with spineless dorsal fins, , the company's group vice president, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Controlled Expenses The company's cost-control programs produced positive results during the second quarter of 1997. Selling, general and administrative expenses decreased to $4,416,000, or 28% of sales, in the second quarter of 1997, down from $4,510,000, or 32% of sales, for the same quarter of 1996. R&D expenses were $2,336,000, or 15% of sales, compared with $2,434,000, or 17% of sales, for the second quarter of 1996. Strong Balance Sheet The company maintains a strong balance sheet. As of June 30, 1997, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $26,741,000, total assets were $66,290,000 and total liabilities were $39,477,000. New Product Sales Growth Several products approved in 1996 continue to gain market share. Solid dosage form A dosage form is the physical form of a dose of medication, such as a capsule or injection. The route of administration is dependent on the dosage form of a given drug. products such as carbamazepine carbamazepine /car·ba·maz·e·pine/ (kahr?bah-maz´e-pen) an anticonvulsant and analgesic used in the treatment of pain associated with trigeminal neuralgia and in epilepsy manifested by certain types of seizures. tablets, an epilepsy epilepsy, a chronic disorder of cerebral function characterized by periodic convulsive seizures. There are many conditions that have epileptic seizures. Sudden discharge of excess electrical activity, which can be either generalized (involving many areas of cells in treatment, and clomipramine hydrochloride clomipramine hydrochloride a tricyclic antidepressant. clomipramine hydrochloride Anafranil, Apo-Clomipramine (CA), Gen-Clomipramine (CA), Novo-Clopamine (CA) Pharmacologic class: Tricyclic antidepressant (TCA) capsules, an antidepressant antidepressant, any of a wide range of drugs used to treat psychic depression. They are given to elevate mood, counter suicidal thoughts, and increase the effectiveness of psychotherapy. used to treat obsessive compulsive disorders Obsessive compulsive disorder (OCD) Disorder characterized by persistent, intrusive, and senseless thoughts (obsessions) or compulsions to perform repetitive behaviors that interfere with normal functioning. Mentioned in: Tourette Syndrome , have increased their market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . In addition, clobetasol clobetasol /clo·be·ta·sol/ (klo-ba´tah-sol) a synthetic corticosteroid used topically as the propionate salt for the relief of inflammation and pruritus in corticosteroid-responsive dermatoses. topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. cream and ointment ointment /oint·ment/ (oint´ment) a semisolid preparation for external application to the skin or mucous membranes, usually containing a medicinal substance. oint·ment n. , topical corticosteriod products, have experienced increased market acceptance. In the second quarter of 1997, the company successfully launched its newest approved Abbreviated New Drug Application abbreviated new drug application Pharmacology An application made in the US by a pharmaceutical company requesting authority to market a 'new' drug for which both its therapeutic indications and formulation were previously approved by the FDA in another similar (ANDA ANDA abbr. abbreviated new drug application ) product, acetazolamide tablets, with positive initial results. "The company expects to gain increasing penetration of the solid dosage form market and continued success with the topical corticosteriod market. In addition, we expect our investments in R&D to result in additional ANDA approvals in the second half of 1997," stated Barrie Levitt, M.D., chairman of the company. Approval of Australian "Non-Spill" Patent The company is pleased to announce that it received notification from the Australian government that the patent for its proprietary non-spill delivery system has been approved in that country. This is the second market in which the company has received patent protection, following patent approval in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . This proprietary product is a novel, multi-purpose delivery system which allows for administering a wide variety of both prescription and over-the-counter products in a liquid vehicle that resists spilling and allows for accurate dosage dosage /dos·age/ (do´saj) the determination and regulation of the size, frequency, and number of doses. dos·age n. 1. Administration of a therapeutic agent in prescribed amounts. . Taro Pharmaceutical Industries is a multinational pharmaceutical company whose research and development program has resulted in the company being the first generic marketer of several branded drugs as well as the developer of several novel pharmaceutical compounds. For further information on Taro Pharmaceutical Industries, visit the company's home page at http://www.taropharma.com . To receive additional information on Taro, via fax at no charge, dial 800/PRO-INFO and enter company code TAROF. Certain statements in this release regarding expected success in various markets by the company's products, with respect to the results expected from research and development, and as to expected approvals by the Food and Drug Administration are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although Taro Pharmaceutical Industries Ltd. believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurance that its expectations will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . Factors that could cause actual results to differ materially from the company's expectations include industry and market conditions, slower than anticipated penetration of new markets, changes in the company's financial position, regulatory actions, and other risks detailed from time to time in the company's SEC reports, including its Annual Report on Form 20-F for the last fiscal year, which ended on Dec. 31, 1996. -0-
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except per-share data)
Three Months Ended
June 30,
1997 1996
Sales $ 15,570 $ 14,100
Cost of sales 7,819 5,699
------------- ---------------
Gross profit 7,751 8,401
Operating expenses:
Research and development 2,336 2,434
Selling and administrative 4,416 4,510
------------- ---------------
6,752 6,944
------------- ---------------
Operating income 999 1,457
Financial expenses
- net 445 493
------------- ---------------
554 964
Other income - net 2 5
------------- ---------------
556 969
Taxes on income 146 411
------------- ---------------
410 558
Minority share
in profits (losses)
of subsidiaries 3 8
------------- ---------------
Net income $ 407 $ 550
============= ===============
Earnings per
ordinary share/a $ 0.04 $ 0.05
Weighted average
number of shares
used in computation 10,395,027 10,399,508
Six Months Ended
June 30,
1997 1996
Sales $ 28,253 $ 26,776
Cost of sales 13,628 11,536
----------------------------
Gross profit 14,625 15,240
Operating expenses:
Research and development 4,273 4,336
Selling and administrative 8,865 8,707
----------------------------
13,138 13,043
----------------------------
Operating income 1,487 2,197
Financial expenses
- net 903 776
----------------------------
584 1,421
Other income - net 9 12
----------------------------
593 1,433
Taxes on income 121 645
----------------------------
472 788
Minority share
in profits (losses) of
subsidiaries (10) 12
----------------------------
Net income $ 482 $ 776
============================
Earnings per
ordinary share/a $ 0.05 $ 0.07
Weighted average
number of shares
used in computation 10,604,729 10,352,233
Note (a) -- Earnings Per Ordinary Share
Earnings per share is based on the weighted average number of
outstanding ordinary (common) shares and common stock equivalents
(options). The difference between primary and fully diluted
earnings per share is not significant.
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
June 30, Dec. 31,
1997 1996
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $ 2,492 $ 2,422
Accounts receivable 19,871 17,479
Inventories 13,529 13,109
--------- -----------
Total current assets 35,892 33,010
Property, plant
and equipment, net 25,327 23,672
Other assets 5,071 5,198
--------- -----------
Total assets $ 66,290 $ 61,880
========= ===========
Liabilities
and Shareholders' Equity
Current liabilities:
Short-term bank credits $ 10,489 $ 7,883
Current maturities
of long-term liabilities 1,408 1,131
Accounts payable
and accrued expenses 11,325 11,200
--------- -----------
Total current liabilities 23,222 20,214
Long-term liabilities 15,775 14,740
Deferred taxes
and other liabilities 480 526
--------- -----------
Total liabilities $ 39,477 $ 35,480
Minority interest 72 82
Shareholders' equity 26,741 26,318
--------- -----------
Total liabilities
and shareholders' equity $ 66,290 $ 61,880
========= ===========
CONTACT: Taro Pharmaceutical Industries Ltd., Hawthorne Kevin Connelly Kevin Connelly was born in Middlesbrough, England. He is an impressionist comedian, and after dinner speaker and is probably most famous for his role on the popular BBC television programme 'Dead Ringers'. , 914/345-9001 or The Financial Relations Board Inc. Daniel Saks, 310/442-0599 (general info) Kathy Brunson, 312/266-7800 (analysts) Steven Seiler, 310/442-0599 (media) |
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