On Friday, Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) published preliminary results for the third quarter of 2010, its first since India's Sun Pharmaceutical Industries Ltd. (BSE: 524715) finally took control of the company last month. Taro has not published audited financial reports for several years as it restates previous financials.
Taro's sales rose 10% to $103.2 million for the third quarter from $93.8 million for the corresponding quarter. Net profit doubled to $18.9 million ($0.43 per share) for the third quarter from $9.7 million for the corresponding quarter.
Sun Pharmaceuticals is not pleased with the results. Chairman and managing director Dilip Shanghvi, who now serves as Taro chairman, said, "Though Taro provides a platform to expand generic opportunities, the organization requires a significant and sustained rebuilding effort. Single-digit growth in sales at relatively low margins, compared to Sun’s other core businesses, are indicative of the magnitude of this challenge. Now that the transfer of control to Sun Pharma has been completed, we will work to further move the company forward."
Taro's share closed at $11.65 in New York on Friday, giving a market cap of $457 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2010
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