Taro Pharmaceutical Industries, a subsidiary of Sun Pharmaceutical and Industries, has posted impressive performance during the first quarter ended March 2012 on account of pricing opportunities.

The company's net income went up sharply by 84.1 per cent to US$ 47.3 million during the first quarter from $25.7 million in the similar period of last year. Its net sales moved up by 34.7 per cent to $145.1 million from $107.7 million. With strong improvement in profits, its earnings per share improved to $1.06 from $0.58 in the last period.

Kal Sundaram, recently appointed chairman of Taro Pharma, said, “We are pleased with the quarter's results and the consistent progress that we continue to make. As we have sated in the past, a portion of our revenue and profit growth is the result of pricing opportunities, the sustainability of which is uncertain. We intend to ramp up our R&D expenditures in order to improve and grow our pipe-line of quality products in order to remain competitive in a highly competitive market.”

“I look forward to working with the entire Taro management team as we continue to move the company forward, an build upon the progress an success that Taro has achieved, particularly in the past eighteen months,” he added.

The company closed down its Ireland manufacturing facility during 2010 and incurred a loss of $135 thousand in the quarter ended March 2010 as against a profit of $66 thousand. Its tax expenses went up to $17.8 million from $6.4 million in the similar quarter of last year. Its R&D expenditure increased to $9.8 million from $7.3 million.

During the quarter, Taro received one supplemental new drug application approval from the US FDA for Daranide (dichlorphenamide) tablets 50mg. It also received one ANDA approval in May 2012 for escitalopram oxalate oral solution, 5 mg. The total number of products awaiting approval at the FDA is sixteen ANDA's and one new drug application.

The company has decided to change its accounting year from December to March. The new fiscal year end was effectuated to align Taro's fiscal reporting period and its annual budget planning with that of its major shareholder, Sun Pharma.