Taro Pharmaceutical Industries reports fourth-quarter and year-end results.HAWTHORNE, N.Y.--(BUSINESS WIRE)--Feb. 20, 1997-- Record Sales for Four Consecutive Quarters R&D Investment Yields Seven ANDA ANDA abbr. abbreviated new drug application Approvals in 1996 and Strong Product Pipeline Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS:TAROF) Thursday reported record sales and a significant increase in net income for the three months and the year ended Dec. 31, 1996. Net income for the quarter and the year increased despite a substantial rise in R&D expenditures. Continued Record Sales The company achieved record sales for the fourth consecutive quarter, up to $15,064,000 for the fourth quarter of 1996 from $12,472,000 for the fourth quarter of 1995. R&D expenditures increased 38% to $2,518,000, or 17% of sales, from $1,821,000, or 15% of sales, for the fourth quarter of 1995. Net income for the fourth quarter of 1996 increased to $714,000, or $0.07 per share, from $124,000, or $0.01 per share, for the fourth quarter of 1995. The company reported 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 of $56,528,000 for 1996, compared with $49,581,000 for the previous year. R&D expenditures increased 37% to $8,913,000, or 16% of sales, for 1996, compared with an expenditure of $6,494,000, or 13% of sales, for 1995. Net income for 1996 was $2,196,000, or $0.21 per share, compared with $2,025,000, or $0.19 per share, for 1995. Seven ANDA Approvals in 1996 "1996 was an impressive year for the company with seven 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) approvals, and an eighth in January of 1997," stated Barrie Levitt, M.D., the company's chairman. "Our R&D program produced eight ANDA approvals in an eight-month period. We expect our investment in R&D to help produce gains in both sales and earnings in 1997." In 1996, Taro entered the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. prescription 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. market with its fourth quarter ANDA approvals for 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 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, 25 mg, 50 mg and 75 mg. Carbamezepine, an anticonvulsant anticonvulsant /an·ti·con·vul·sant/ (-kon-vul´sant) inhibiting convulsions, or an agent that does this. an·ti·con·vul·sant n. A drug that prevents or relieves convulsions. drug, 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 , a tricyclic antidepressant tri·cy·clic antidepressant n. Any of a class of antidepressants, such as amitriptyline, that are structurally related to the phenothiazine antipsychotics. , are the company's first solid dosage form products to be manufactured in Israel for the United States market. The company's in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. synthesis of the carbamazepine used in its carbamazepine tablets make Taro a low-cost producer of the product. In addition, the company continued expansion of its extensive line of 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. dermatologic dermatological, dermatologic pertaining to dermatology; of or affecting the skin. products during 1996 with the approval of its ANDA's for Desoximetasone 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. , Clobetasol Propionate clobetasol propionate (klōbā´t  sol´ prō´pē Cream
and Ointment, 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. Solution and Fluocinonide Solution. Continued Investment in R&D The company's investment in R&D includes generic drug generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. development, pharmaceutical chemical R&D and the company's vertical integration program, as well as the development of certain proprietary drugs and delivery systems. The increase in R&D spending by the company over the last several years has produced an increase in ANDA filings and approvals, as well as progress in the development of the company's novel chemical entities such as its patented anticonvulsant drug. In June 1996, the company reported that it received support from both the National Institutes of Health in the United States and the Ministry of Commerce and Industry in Israel in testing and funding for the anticonvulsant drug. In addition to its seven ANDA approvals in 1996, the company received approval from the Israel Ministry of Health to market controlled release carbamazepine tablets in Israel, marking Taro's entry into controlled release technology. The company plans to file regulatory submissions for this product in several international markets during 1997. Strong Balance Sheet The company maintained a strong balance sheet in 1996. 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. has grown from $10 million to more than $26 million in the last five years. In addition, the company has sustained high gross margins while building five-year annual sales growth of more than 21% per year compounded annually. Future Outlook "Taro continues to prepare for additional growth in 1997 as well as the coming years," Levitt stated. "The company expects to maintain its rate of ANDA filings with the United States Food and Drug Administration United States Food and Drug Administration (FDA), n.pr a unit of the Public Health Service created to protect the health of the nation against impure and unsafe foods, drugs, and cosmetics. (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) in the current year and will support all aspects of its extensive R&D program while increasing profitability during 1997," Levitt concluded. The company has multiple regulatory filings in Canada and Israel, and 11 ANDA's currently submitted to the FDA. Industry sources estimate that the current markets in the United States for the drugs targeted by these 11 ANDA's have an aggregate value of approximately $400 million. 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 Pharmaceutical Industries, at no charge, dial 800/PRO-INFO and enter company code 104 or ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors TAROF. -0-
TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except per-share data)
Three Months Ended Year Ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
SALES $ 15,064 $ 12,472 $ 56,528 $ 49,581
Cost of Sales 6,885 5,926 25,145 20,874
Gross Profit 8,179 6,546 31,383 28,707
Operating Expenses:
Research and Development 2,518 1,821 8,913 6,494
Selling and Administrative 4,502 3,952 17,659 16,880
7,020 5,773 26,572 23,374
Operating Income 1,159 773 4,811 5,333
Financial Expenses - Net 330 537 1,644 1,823
829 236 3,167 3,510
Other Income (Expense) - Net (9) 6 106 28
Income Before Taxes on Income 820 242 3,273 3,538
Taxes on Income 105 124 1,061 1,501
715 118 2,212 2,037
Minority Share in Profits
(Losses) of Subsidiaries 1 (6) 16 12
NET INCOME $ 714 $ 124 $2,196 $2,025
Earnings per Ordinary Share: $ 0.07 $ 0.01 $ 0.21 $ 0.19
(Note 1)
Weighted average number
of shares 10,393,867 10,318,764 10,379,116 10,426,569
Note 1 - EARNINGS PER ORDINARY SHARE
Earnings per share are based on the weighted average number of
outstanding ordinary (common) shares and common stock equivalents
(warrants and 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)
Dec. 31, Dec. 31,
1996 1995
Assets
Current Assets:
Cash and Cash Equivalents $ 2,422 $ 2,551
Accounts Receivable 17,478 14,178
Inventories 13,109 11,194
Total Current Assets 33,009 27,923
Property, Plant and Equipment, net 23,672 16,241
Other Assets 5,629 5,368
TOTAL ASSETS $ 62,310 $ 49,532
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term Bank Credits $ 7,882 $ 4,297
Current Maturities of Long-term Liabilities 1,131 727
Accounts Payable and Accrued Expenses 11,200 8,521
Total Current Liabilities 20,213 13,545
Long-term Liabilities 14,740 11,352
Deferred Taxes and Other Liabilities 957 433
Total Liabilities 35,910 25,330
Minority Interests 82 66
Shareholders' Equity 26,318 24,136
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 62,310 $ 49,532
CONTACT: Taro Pharmaceutical Industries Ltd., Hawthorne Peter Giallorenzo, 914/345-9001 or The Financial Relations Board Inc. Daniel Saks, 310/442-0599 (general info) Kate Rajeck, 415/986-1591 (analysts) Steven Seiler, 310/442-0599 (media) |
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