Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) controlling shareholder, India's Sun Pharmaceutical Industries Ltd. (BSE: 524715) is keeping its promise made during the struggle for control of the Israeli company and will expand Taro's operations. Sun Pharma announced that it will invest $100 million (4.5 billion rupees) over the next two years to expand and upgrade its facilities.
In response to a question by "Globes", Sun Pharma did not disclose how much of this amount would be invested in Taro, but said that Taro was included in the investment plan.
Taro has production facilities in Haifa in Israel, the US, and Canada. The company's offices are located in Yakum.
Sun Pharma, which owns 66% of Taro, has a market cap of $10.7 billion. Sun Pharma's financial report for the first quarter of 2011 highlights Taro's contribution to the company - 17%of its total net profit of 4.43 billion rupees ($98 million).
Taro published its financial report for the first quarter last week. Revenue rose 21% to of $107.7 million from $89 million for the corresponding quarter, and net profit rose to $25.7 million ($0.21 per share) from $8.6 million. In March, the company filed its audited financial report for 2009 with the US Securities and Exchange Commission (SEC).
Taro's share price closed at $19.50 yesterday, giving a market cap of $767 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011