HAWTHORNE, N.Y.–(BUSINESS WIRE)–Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter ended June 30, 2019.
Quarter ended June 30, 2019 Highlights – compared to June 30, 2018
- Net sales of $161.3 million, increased $6.7 million, or 4.3%, despite a single digit decrease in volumes primarily due to category mix.
- Gross profit of $101.7 million increased $1.6 million, and as a percentage of net sales was 63.1% compared to 64.7%.
- Research and development expenses of $13.4 million remained in line with prior year.
- Selling, marketing, general and administrative expenses of $19.7 million decreased $3.9 million.
- Operating income of $68.6 million increased $5.4 million and as a percentage of net sales was 42.5% as compared to 40.8%.
- Interest and other financial income increased $1.8 million to $9.6 million.
- Foreign Exchange (FX) income of $7.9 million decreased $2.1 million the result of the strengthening of the Canadian dollar vs. the U.S. dollar.
- Tax expense of $20.4 million increased $6.3 million with the effective tax rate increasing to 23.6% from 17.3%.
- Net income attributable to Taro was $66.2 million compared to $67.3 million, resulting in diluted earnings per share of $1.72 compared to $1.71.
Cash Flow and Balance Sheet Highlights
- Cash flow provided by operations was $82.6 million compared to $82.4 million for the three months ended June 30, 2018.
- As of June 30, 2019, cash, including short-term and long-term marketable securities and bank deposits, increased $77.6 million to $1.431 billion from March 31, 2019.
Mr. Uday Baldota, Taro’s CEO stated, “Operating results of this quarter reflect the impact of many underlying challenges of our industry. Despite the headwinds, we remain steadfast in our commitment to customers and patients. We are executing on our strategy and continue to add to our portfolio of high quality products across business and markets.”
FDA Approvals and Filings
The Company recently received two approvals from the U.S. Food and Drug Administration (“FDA”) for Abbreviated New Drug Applications (“ANDAs”); Dapsone Gel, 7.5% and Iloperidone Tablets, 1 mg, 2 mg, 4 mg, 6 mg, 8 mg, 10 mg, and 12 mg. The Company currently has a total of twenty-six ANDAs awaiting FDA approval, including seven tentative approvals.
Form 20-F Filings with the SEC
On June 20, 2019, the Company filed its Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (“SEC”) for the fiscal year ended March 31, 2019.
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The Company cautions that the foregoing financial information is presented on an unaudited basis and is subject to change.
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