Taro Pharmaceutical Industries Ltd, a subsidiary of Sun Pharmaceutical Industries Ltd, has improved its working during the third quarter ended September 2011 with reduction in costs, R&D expenditure and interest burden.  Its net profit has taken quantum jump of 200 per cent and touched to $58.9 million from $18.5 million.  Net income was favorably impacted by foreign exchange income of $16.1 million, compared to an expense of $2.1 million--an $18.2 million benefit. Higher profit resulted in diluted earnings per share of $1.32 compared to $0.45. Its net sales moved up by 34.1 per cent to $138.3 million from $ 103.1 million in the corresponding period of last year.

For the first nine months ended September 2011, Taro's net sales increased by 23.3 per cent to $ 357.6 million from $289.9 million in the similar period of last year. Its net profit went up by 153 per cent to $120.3 million from $47.6 million.
 
Taro's interim CEO, Jim Kedrowski, commented, "The third quarter, which is typically our strongest, was a very good quarter for Taro as illustrated by these financial results. Progress continues on all fronts as demonstrated by our top-line growth, the reduction in SG&A expenses and improved manufacturing performance. However, a portion of this revenue growth is attributable to our ability to capitalize on current market opportunities which may not be sustainable. In addition, Taro's product pipeline has not developed as quickly as we expected as evidenced by the level of our R&D expenses and by the relatively low number of product filings and approvals."

Kedrowski continued, "Our majority shareholder, Sun Pharma, has made an offer to purchase all of the issued and outstanding shares of Taro. While a special committee of the Independent Directors has been formed to evaluate the proposal, Taro management remains focused on our core business in order to finish the year on a strong note."

During the quarter, Taro filed an ANDA for one product with the FDA. Year to date, Taro has filed ANDAs for three products and has received approval for ANDAs representing seven products. ANDAs for 22 products (including four tentative approvals) and one NDA await FDA approval.

As announced October 19, 2011, the company's Board of Directors received a letter from Sun Pharmaceutical Industries Ltd. (together with its subsidiaries and affiliates, "Sun Pharma") making a non-binding proposal for the acquisition of all of the issued and outstanding shares of Taro, not currently held by Sun Pharma, at a price of $24.50 per share, in cash; representing a 25.96 per cent premium over Taro's closing price on October 17, 2011.