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 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 (kl -tr Cream
USP, 1%. "Unit sales 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, the
company's group vice president, North America.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 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 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. car·ba·maz·e·pine (kär tablets, an epilepsy treatment, and clomipramine clomipramine /clo·mip·ra·mine/ (klo-mip´rah-men) a tricyclic antidepressant with anxiolytic activity, also used in obsessive-compulsive disorder, panic disorder, bulimia nervosa, cataplexy associated with narcolepsy, and chronic, severe pain; used as the hydrochloride salt. hydrochloride capsules, an antidepressant used to treat obsessive compulsive disorders, have increased their market penetration. In addition, clobetasol topical cream and ointment, 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 (ANDA) product, acetazolamide acetazolamide /ac·et·a·zol·a·mide/ (as?et-ah-zol´ah-mid) a renal carbonic anhydrase inhibitor with uses that include treatment of glaucoma, epilepsy, familial periodic paralysis, acute mountain sickness, and uric acid renal calculi. ac·e·ta·zo·la·mide 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 Second market The OTC market. in which the company has received patent protection,
following patent approval in South 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. 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 within the meaning of the Private Securities Litigation Reform Act 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. 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, 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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