Business Wire India
Taro Pharmaceutical Industries Ltd. (NYSE:TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and fiscal year ended March 31, 2017.
Quarter ended March 31, 2017 Highlights - compared to March 31, 2016
Year ended March 31, 2017 Highlights - compared to March 31, 2016
Cash Flow and Balance Sheet Highlights - compared to March 31, 2016
Mr. Abhay Gandhi, Taro’s Interim CEO said, “As is commonly known, and as we have stated for quite some time, the entire generic sector, including Taro, is facing a challenging period. We continue to see a difficult generic pricing environment, particularly in the U.S., driven by intensified competition among manufacturers, new entrants to the market, buying consortium pressures, and higher ANDA approval rate from the FDA.” Mr. Gandhi continued, “Based on our well-balanced portfolio, the continuing focus on R&D investment, our healthy pipeline, and the Company’s strong balance sheet, we believe we are well positioned in our target markets.”
FDA Approvals and Filings
The Company recently received approvals from the U.S. Food and Drug Administration (“FDA”) for four Abbreviated New Drug Applications (“ANDAs”): Brompheniramine Maleate, Pseudoephedrine Hydrochloride and Dextromethorphan Hydrobromide Syrup 2 mg/5 mL, 30mg/5 mL, 10 mg/5 mL, Metronidazole Gel USP, 1%, Tazarotene Cream, 0.1% and Felbamate Tablets, 400 mg and 600 mg. The Company currently has a total of thirty-five ANDAs awaiting FDA approval, including 5 tentative approvals.
Share Repurchase Program - Returning Capital to Shareholders
On November 23, 2016, the Company announced that its’ Board of Directors approved a new $250 million share repurchase of ordinary shares. This authorization follows the successful completion of the previous $250 million share repurchase program on August 19, 2016; under which, the Company bought back 1,801,099 of its ordinary shares, of which, 1,733,760 shares were purchased subsequent to April 1, 2016.
Under the November 2016 authorization, repurchases may be made from time to time at the Company’s discretion, based on ongoing assessments of the capital needs of the business, the market price of its stock, and general market conditions. No time period has been set for the repurchase program, and any such program may be suspended or discontinued at any time. The repurchase authorization enables the Company to purchase its ordinary shares from time to time through open market purchases, negotiated transactions or other means, including 10b5-1 trading plans in accordance with applicable securities laws or other restrictions. During the fourth quarter, the Company repurchased 207,503 shares at an average price of $103.99. During the year, the Company repurchased 2,252,725 shares between the two programs.
Purchase of Thallion Pharmaceuticals Inc.
On March 16, 2017, BELLUS Health Inc.(“BELLUS”) announced that it had entered into a share purchase agreement with Taro for the sale of BELLUS’ wholly-owned subsidiary Thallion Pharmaceuticals Inc. (“Thallion”), including all the rights to the drug candidate Shigamab™. Pursuant to the agreement, Taro is acquiring all issued and outstanding shares of Thallion for a potential total consideration of CAD $2.7 million. In addition, BELLUS will receive a portion of certain post-approval revenues related to the Shigamab™ program.
Development and Commercialization license to sell and distribute Pliaglis®
On April 25, 2017, Crescita Therapeutics Inc. (“Crescita”), announced it had entered into a development and commercialization license agreement with Taro, under which, Crescita has granted Taro an exclusive license to the rights to sell and distribute Pliaglis® in the U.S. market and for a second-generation enhanced version with patent pending.
Earnings Call(8:00 am EDT, May 23, 2017)
As previously announced, the Company will host an earnings call at 8:00 am EDT on Tuesday, May 23, 2017, where senior management will discuss the Company’s performance and answer questions from participants. This call will be accessible through an audio dial-in and a web-cast. Audio conference participants can dial-in on the numbers below:
To participate in the audio call, please dial the numbers provided above five to ten minutes ahead of the scheduled start time. The operator will provide instructions on asking questions before the call. The transcript of the event will be available on the Company’s website at www.taro.com. An audio playback will be available for twenty four (24) days following the call.
About Taro
Taro Pharmaceutical Industries Ltd. is a multinational, science-based pharmaceutical company, dedicated to meeting the needs of its customers through the discovery, development, manufacturing and marketing of the highest quality healthcare products. For further information on Taro Pharmaceutical Industries Ltd., please visit the Company’s website at www.taro.com.
SAFE HARBOR STATEMENT
The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments necessary to present fairly the financial condition and results of operations of the Company.The unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 20-F, as filed with the SEC.
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.These statements include, but are not limited to, statements that do not describe historical facts or that refer or relate to events or circumstances the Company “estimates,” “believes,” or “expects” to happen or similar language, and statements with respect to the Company’s financial performance, availability of financial information, and estimates of financial results and information for fiscal year 2018.Although the Company believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurances that its expectations will be attained.Factors that could cause actual results to differ include general domestic and international economic conditions, industry and market conditions, changes in the Company's financial position, litigation brought by any party in any court in Israel, the United States, or any country in which Taro operates, regulatory and legislative actions in the countries in which Taro operates, and other risks detailed from time to time in the Company’s SEC reports, including its Annual Reports on Form 20-F.Forward-looking statements are applicable only as of the date on which they are made.The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.
**Financial Tables Follow**
| TARO PHARMACEUTICAL INDUSTRIES LTD. | |||||||||||||||||||||
| SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| (U.S. dollars in thousands, except share data) | |||||||||||||||||||||
| Quarter Ended | Year Ended | ||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
||||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||||||||
| Sales, net | $ | 196,414 | $ | 265,073 | $ | 879,387 | $ | 950,751 | |||||||||||||
| Cost of sales | 52,494 | 40,749 | 207,860 | 169,743 | |||||||||||||||||
| Impairment | 92 | 95 | 276 | 2,042 | |||||||||||||||||
| Gross profit | 143,828 | 224,229 | 671,251 | 778,966 | |||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Research and development | 19,878 | 19,948 | 70,644 | 71,160 | |||||||||||||||||
| Selling, marketing, general and administrative | 22,206 | 22,561 | 85,656 | 92,365 | |||||||||||||||||
| Settlements and loss contingencies | — | — | — | 973 | |||||||||||||||||
| Operating income | 101,744 | 181,720 | 514,951 | 614,468 | |||||||||||||||||
| Financial (income) expense, net: | |||||||||||||||||||||
| Interest and other financial income | (3,654 | ) | (2,896 | ) | (14,468 | ) | (12,604 | ) | |||||||||||||
| Foreign exchange expense (income) | 5,830 | 47,478 | (20,168 | ) | (7,068 | ) | |||||||||||||||
| Other gain, net | 745 | 860 | 11,211 | 2,680 | |||||||||||||||||
| Income before income taxes | 100,313 | 137,999 | 560,798 | 636,820 | |||||||||||||||||
| Tax expense | 17,313 | 22,950 | 103,780 | 95,313 | |||||||||||||||||
| Income from continuing operations | 83,000 | 115,049 | 457,018 | 541,507 | |||||||||||||||||
| Net loss from discontinued operations attributable to Taro | (38 | ) | (34 | ) | (352 | ) | (236 | ) | |||||||||||||
| Net income | 82,962 | 115,015 | 456,666 | 541,271 | |||||||||||||||||
| Net (loss) income attributable to non-controlling interest | (23 | ) | 65 | 310 | 339 | ||||||||||||||||
| Net income attributable to Taro | $ | 82,985 | $ | 114,950 | $ | 456,356 | $ | 540,932 | |||||||||||||
|
Net income per ordinary share from continuing |
|||||||||||||||||||||
| Basic | $ | 2.05 | $ | 2.68 | $ | 11.06 | $ | 12.63 | |||||||||||||
| Diluted | $ | 2.05 | $ | 2.68 | $ | 11.06 | $ | 12.63 | |||||||||||||
|
Net loss per ordinary share from discontinued |
|||||||||||||||||||||
| Basic | $ | (0.00 | ) | * | $ | (0.00 | ) | * | $ | (0.01 | ) | $ | (0.01 | ) | |||||||
| Diluted | $ | (0.00 | ) | * | $ | (0.00 | ) | * | $ | (0.01 | ) | $ | (0.01 | ) | |||||||
| Net income per ordinary share attributable to Taro: | |||||||||||||||||||||
| Basic | $ | 2.05 | $ | 2.68 | $ | 11.05 | $ | 12.62 | |||||||||||||
| Diluted | $ | 2.05 | $ | 2.68 | $ | 11.05 | $ | 12.62 | |||||||||||||
|
Weighted-average number of shares used to compute net |
|||||||||||||||||||||
| Basic | 40,566,815 | 42,828,338 | 41,300,797 | 42,832,241 | |||||||||||||||||
| Diluted | 40,566,815 | 42,828,338 | 41,300,797 | 42,832,241 | |||||||||||||||||
| * Amount is less than $0.01 | |||||||||||||||||||||
| May not foot due to rounding. | |||||||||||||||||||||
| TARO PHARMACEUTICAL INDUSTRIES LTD. | |||||||||
| SUMMARY CONSOLIDATED BALANCE SHEETS | |||||||||
| (U.S. dollars in thousands) | |||||||||
| March 31, | March 31, | ||||||||
| 2017 | 2016 | ||||||||
| ASSETS | (unaudited) | (audited) | |||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 600,399 | $ | 576,757 | |||||
| Short-term and current maturities of long-term bank deposits | 782,813 | 648,297 | |||||||
| Marketable securities | 3,548 | 3,572 | |||||||
| Accounts receivable and other: | |||||||||
| Trade, net | 203,924 | 238,611 | |||||||
| Other receivables and prepaid expenses | 266,280 | 270,724 | |||||||
| Inventories | 141,045 | 138,553 | |||||||
| Long-term assets held for sale, net | 1,015 | 1,081 | |||||||
| TOTAL CURRENT ASSETS | 1,999,024 | 1,877,595 | |||||||
| Long-term bank deposits | 70,685 | 115,173 | |||||||
| Property, plant and equipment, net | 180,085 | 159,459 | |||||||
| Other assets | 39,959 | 35,806 | |||||||
| TOTAL ASSETS | $ | 2,289,753 | $ | 2,188,033 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Trade payables and other current liabilities | $ | 209,837 | $ | 245,462 | |||||
| TOTAL CURRENT LIABILITIES | 209,837 | 245,462 | |||||||
| Deferred taxes and other long-term liabilities | 6,110 | 5,427 | |||||||
| TOTAL LIABILITIES | 215,947 | 250,889 | |||||||
| Taro shareholders' equity | 2,067,494 | 1,931,142 | |||||||
| Non-controlling interest | 6,312 | 6,002 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,289,753 | $ | 2,188,033 | |||||
