Taro Pharmaceutical Industries reports third quarter results.HAWTHORNE Hawthorne. 1 City (1990 pop. 71,349), Los Angeles co., S Calif., a suburb of Los Angeles; inc. 1922. Located in an oil- and gas-producing area, Hawthorne manufactures navigation systems, solar panels, electronic components, silicon instruments, and , N.Y.--(BUSINESS WIRE)--Oct. 24, 1996-- Record Sales Continue for Third Consecutive Quarter of 1996 Aggressive R&D Program Results in Five ANDA ANDA abbr. abbreviated new drug application Approvals in 1996 Taro Pharmaceutical Industries Ltd. (Nasdaq/NMS: TAROF) Thursday reported record sales for the third quarter and the nine months ended Sept. 30, 1996, as well as a sharp increase in net income in the third quarter of 1996 compared with the third quarter of 1995. The increase in net income occurred along with a significant rise in R&D expenditures in support of the Company's increasingly successful R&D program. Record Sales and Aggressive R&D Third quarter 1996 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 15 percent to a record $14,688,000 compared with $12,827,000 for the third quarter of 1995. R&D expenditures increased 30 percent to $2,059,000, or 14 percent of sales, for the third quarter of 1996 from $1,581,000, or 12 percent of sales, for the third quarter of 1995. Net income increased to $706,000 or 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. from $32,000, or 0 cents per share for the third quarter of 1995. Net income for the third quarter of 1995 was adversely affected by a one-time charge of $1,100,000 associated primarily with uncollected receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed incurred by the company. For the nine-months ended Sept. 30, 1996, net sales were a record $41,464,000 compared with $37,109,000, a 12 percent increase compared with the same period in 1995. R&D expenditures increased 37 percent to $6,395,000, from $4,673,000 for the period. Net income for the period decreased from $1,901,000, or 18 cents per share to $1,482,000, or 14 cents per share. The decrease in net income for the nine months ended Sept. 30, 1996 is attributable to the increase in R&D expenditures, a facilities expansion program, and expenses incurred in 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. ") inspections. The successful pre-approval inspections by the FDA were conducted at the company's facilities in both Israel and Canada during the first quarter of 1996. Multiple ANDA's Approved in 1996 "Our extensive investment in R&D during recent years has produced impressive results in 1996," stated Barrie Levitt, M.D., Chairman of Taro Pharmaceutical Industries. "Taro's most recent achievement is the FDA approval of our 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") 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. Production of carbamazepine utilizing active raw material synthesized syn·the·sized adj. 1. Relating to or being an instrument whose sound is modified or augmented by a synthesizer. 2. Relating to or being compositions or a composition performed on synthesizers or synthesized instruments. by the company should give us a successful entry into the U.S. 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." Vertically integrated production A farming system that produces high quality food and other products by using natural resources and regulating mechanisms to replace polluting inputs and to secure sustainable farming. of carbamazepine is expected to enhance Taro's competitive position in the marketplace for this product and make a solid contribution to future earnings. The company has 20 years of experience in manufacturing carbamazepine, during which time Taro has marketed the product in Israel and internationally under its own trade name, Teril(r). In addition, the June and July ANDA approvals of Clobetasol Propionate clobetasol propionate (klōbā´t  sol´ prō´pē Cream, Clobetasol Propionate 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. and Desoximetasone desoximetasone /des·ox·i·met·a·sone/ (des-ok?se-met´ah-son) a synthetic corticosteroid used topically for the relief of inflammation and pruritus in corticosteroid-responsive dermatoses. Ointment expanded Taro's already extensive line of topical corticosteroids Topical corticosteroids Cortisone and related drugs used on the skin and in the eye, usually for allergic conditions. Mentioned in: Corneal Ulcers marketed in 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. . Future Outlook "With five ANDA approvals thus far in 1996, and more approvals expected, Taro has positioned itself for significant growth through the end of 1996 and in the coming years," Levitt stated. The company has multiple regulatory filings in Canada and Israel, and eight ANDA's currently submitted to the FDA. Six ANDA's are for dermatologic dermatological, dermatologic pertaining to dermatology; of or affecting the skin. products and two ANDA's are for solid dosage form central nervous system products. Taro Pharmaceutical Industries, a manufacturer and marketer of prescription and over-the-counter 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. products, is well-positioned to take advantage of worldwide generic drug growth and the company's development of several novel pharmaceutical compounds. Taro's extensive research and development expertise, broad distribution network and vertical integration capabilities fuel the company's expansion in domestic and international markets. For further information on Taro Pharmaceutical Industries, please 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)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
SALES $ 14,688 $ 12,827 $ 41,464 $ 37,109
Cost of Sales 6,724 5,511/a 18,260 15,438/a
Gross Profit 7,964 7,316 23,204 21,671
Operating Expenses:
Research and Development 2,059 1,581/a 6,395 4,673/a
Selling and Administrative 4,450 4,867/a 13,157 12,438/a
6,509 6,448 19,552 17,111
Operating Income 1,455 868 3,652 4,560
Financial Expenses - Net 538 335 1,314 1,286
917 533 2,338 3,274
Other Income (Expense) - Net 103 2 115 22
Income Before Taxes on Income 1,020 535 2,453 3,296
Taxes on Income 311 493/a 956 1,377/a
709 42 1,497 1,919
Minority Share in Profits of
Subsidiaries 3 10 15 18
NET INCOME $ 706 $ 32 $ 1,482 $ 1,901
Earnings per Ordinary Share:
(Note1) $ 0.07 $ 0.00 $ 0.14 $ 0.18
Weighted average number
of shares 10,418,130 10,456,255 10,374,199 10,462,504
/a) Reclassified
Note1 - 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.
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TARO PHARMACEUTICAL INDUSTRIES LTD.
SUMMARY CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
Sept. 30, 1996 Dec. 31, 1995
(Unaudited) (Audited)
Assets
Current Assets:
Cash and Cash Equivalents $ 2,620 $ 2,551
Accounts Receivable 16,516 14,178
Inventories 12,559 11,194
Total Current Assets 31,695 27,923
Property, Plant and Equipment, net 21,232 16,241
Other Assets 5,183 5,368
TOTAL ASSETS $ 58,110 $ 49,532
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term Bank Credits $ 5,990 $ 4,297
Current Maturities of
Long-term Liabilities 907 727
Accounts Payable and Accrued Expenses 10,913 8,521
Total Current Liabilities 17,810 13,545
Long-term Liabilities 14,172 11,352
Deferred Taxes and Other Liabilities 392 433
Total Liabilities 32,374 25,330
Minority Interests 81 66
Shareholders' Equity 25,655 24,136
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $58,110 $49,532
CONTACT: Taro Pharmaceutical Industries Ltd. Peter Giallorenzo 914/345-9001 or At Financial Relations Board Inc. Daniel Saks Kate Rajeck Steven Seiler General Info. Analyst Info. Media Info. 310/442-0599 415/986-1591 310/442-0599 |
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