Taro Pharmaceutical Industries, an Israel based subsidiary of Sun Pharmaceutical Industries, has received setback during the second quarter ended September 2015 and its net profit as well as net sales declined. Its net profit declined by 7.2 per cent to $133.6 million from $143.9 million in the similar period of last year. Its net sales declined by 15.4 per cent to $212 million from $250.8 million due to the impact of net charges taken to meet contractual obligations associated with price adjustments and the changing US market dynamics on certain products. Its EPS declined to $3.11 from $3.35 in the last period.
Its R&D expenditure increased to $18.7 million from $13.8 million. The company has currently 34 ANDAs awaiting FDA approval. It received approval for Kevekyis 50 mg tablets.
Kal Sundaram, CEO, said, “We continue to experience pressure on our business from strong competition and the industry and customer consolidations as evidenced by the decrease in our net sales. However, our margins remain strong as the result of the cost efficiencies and benefits realized as we actively mange and remain disciplined with our spending.”
“The recent approval and launch of Keveyis, the first medicine approved by the FDA for the treatment of primary hyperkalemic and hypokalemic periodic paralysis, demonstrates our conti9nuing commitment to R&D,” he added.
In October 2015, It acquired Epirus Biopharmaceuticals, Inc. for all of the shares of Zalicus Pharmaceuticals, and its product candidate Z944 and certain related assets, a novel, oral, T-type calcium channel modulator in development for the treatment of pain. As a result of the sale, Taro paid CAD$5 million in cash and a non-interest bearing, limited recourse promissory note in the amount of CAD$5 million with a maturity date of July 1, 2017.
For the first half ended September 2015, Taro's net sales increased by 12.1 per cent to $427.3 million from $381.1 million in the similar period of last year. Its net profit improved by 24.8 per cent to $237.3 million from $190.2 million.