Taro Pharmaceutical Industries (Taro), subsidiary of Sun Pharmaceutical Industries, has posted strong growth in top line as well as bottom line during the first quarter ended June 2012. Its net profit improved by 75 per cent to $62 million from $36 million in the corresponding period of last year. Its net sales moved up 42.6 per cent to $159 million from $112 million. With strong growth in net profit its earnings per share increased to $1.41 from $0.81 in the last period.
The company's R&D expenditure increased by 47.6 per cent to $11.5 million from $7.8 million. Selling, marketing, general and administrative expenses decreased $1.5 million, and as a percentage of net sales decreased to 14.8 per cent, compared to 22.5 per cent. Operating income increased to $79.0 million, or 49.6 per cent of net sales, compared to $34.2 million, or 30.6 per cent of net sales; a $44.8 million or 131.2 per cent increase.
Kal Sundaram, Taro’s chairman stated, “We are pleased to present this quarter’s results to Taro’s shareholders, reflecting a good performance despite the prevailing economic uncertainties in our major markets. We are also pleased to note the increased R&D spend which is essential to keep us competitive in the long-term. However, we remain cautious of the increasing competition and consequential erosion of volume on some of our major products and the challenge in maintaining current performance.”
The company recently received two approvals from the US FDA for its ANDAs for clobetasol propionate lotion, 0.05 per cent and escitalopram oxalate oral solution, 5mg (base)/5mL. During the quarter, the company filed one ANDA and one New Drug Application (NDA) with the FDA. With this, ANDAs representing fifteen products as well as two NDAs await FDA approval.