Taro Pharma Q3 Profit Up 47% On Higher Sales, Margins

(RTTNews) - Israel-based drugmaker Taro Pharmaceutical Industries Ltd. (TARO) on Tuesday reported a 47 percent increase in profit for the third quarter from last year, reflecting double-digit sales growth and higher margins, in addition to lower settlements and loss contingencies.

The company's net income for the third quarter was $96.34 million or $2.15 per share, up from $65.35 million or $1.46 per share in the same period last year.

Net sales for the quarter increased 28 percent to $205.32 million from $160.97 million in the same period last year.

Taro recorded settlements and loss contingencies of $2.05 million in the quarter, compared to $8.00 million in the year-ago period, related to certain price reporting litigations.

Gross profit as a percentage of net sales, increased to 77.7 percent from 75.4 percent in the year-ago period.

During the quarter, Taro received approvals from the U.S. Food and Drug Administration or FDA for two Abbreviated New Drug Applications or ANDAs for Levocetirizine Dihydrochloride Oral Solution, 2.5mg/5 mL and Gabapentin Capsules, 100 mg, 300 mg and 400 mg. During the quarter, the company also filed one ANDA with the FDA.

With this, ANDAs representing nineteen products as well as one New Drug Applications or NDA await FDA approval.

TARO closed Tuesday's trading at $79.33, up $0.33 or 0.04 percent on a volume of 10,307 shares.