Taro Pharmaceutical Industries, a subsidiary of Sun Pharmaceutical Industries, has received setback during the fourth quarter ended March 2018 due to stiff competition and challenging pricing environment, particularly in the US. Its net sales declined by 10.8 per cent to US$175.2 million from $196.4 million in the corresponding period of last year. Its operating profit also declined by 26.5 per cent to $ 74.8 million from $101.7 million. R&D expenditure increased marginally to $20.3 million from $19.9 million. Its interest income increased to $5.9 million from $3.7 million and forex gains amounted to $16.0 million as against forex loss of $5.8 million which pushed its net profit to $86.5 million from $83 million during fourth quarter. Its taxation provision declined to $10.7 million from $17.3 million in the last period.

For the full year ended March 2018, Taro's net sales declined by 24.7 per cent to $661.9 million from $879.4 million in the previous year. Its operating income also declined by 41.2 per cent to $303 million from $515 million. The net profit declined by 54 per cent to $210.4 million from $457.0 million mainly due to forex loss. Its forex loss amounted to $32.5 million as against gain of $20.2 million. Its interest and other income increased by 37.8 per cent to $19.9 million from $14.5 million. Tax provision declined to $82 million from $103.8 million. R&D expenditure remained stagnant at $70 million. With lower net profit, EPS declined to $5.26 from $11.05 in the last period.

Uday Baldota, CEO, said, “Our results reflect the challenges that the entire US generic industry has faced, and continues to encounter. While we continue to invest prudently in developing products, we have a reasonably good pipeline; some of which will come to market over the next 24 months. We also continue to look at initiatives and opportunities in areas of our core strengths and potentially some adjacent areas as well.”

Recently, Taro received US FDA approval for Clobetasol Propionate spra, 0.05%. It has a total of 32 ANDAs awaiting FDA approval, including four tentative approvals. Taro's onychomycosis drug, novexatin, did not meet the main goal of the PhaseIIb study. The study data is being analyzed and we are evaluating the next course of action in the programme.

The company repurchased 10.86 lakh equity shares at an average price of $102.52. Through May 1, 2018, it has repurchased 17.74 lakh shares at an average price of $102.83; with $67.6 million remaining.