Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Taro Provides Results for September 30, 2022 By: Taro Pharmaceutical Industries Ltd. via Business Wire October 27, 2022 at 18:39 PM EDT Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and six months ended September 30, 2022. Quarter ended September 30, 2022* Highlights ─ compared to September 30, 2021 Net sales of $130.5 million decreased, principally due to the continued price decline particularly in the U.S. generic business, as well as a one-time gross-to-net (“GTN”) adjustment. Gross profit of $47.0 million (36.0% of net sales) compared to $62.0 million (47.0% of net sales). Research and development (R&D) expenses of $11.5 million decreased slightly. Selling, marketing, general and administrative expenses (SG&A) of $42.3 million increased $18.6 million. Operating loss of $(6.8) million compared to operating income of $24.4 million. The current year quarter operating loss is primarily attributable to the aforementioned price erosion and GTN adjustment, as well as the on-going impact associated with the integration of our recent acquisition. Interest and other financial income of $4.3 million increased $1.9 million. Tax benefit of $2.1 million compared to tax expense of $6.1 million in the prior year quarter. Net loss attributable to Taro was $(2.8) million compared to net income of $23.3 million, resulting in (loss) per share of $(0.07) compared to earnings per share of $0.62. Excluding the impact from the settlement and loss contingencies charges in the prior year quarter, net income was $24.7 million, resulting in earnings per share of $0.66. Six Months ended September 30, 2022* Highlights ─ compared to September 30, 2021 Net sales of $287.2 million increased $8.1 million. Gross profit of $128.6 million (44.8% of net sales compared to 50.1%) decreased $11.2 million. R&D expenses of $23.0 million decreased $2.4 million. SG&A of $98.4 million increased $50.7 million. Operating income of $7.2 million compared to $5.2 million, Excluding the impact from the settlement and loss contingencies charges in the prior year, operating income was $66.6 million. The current year operating income primarily reflects the six-month impact of the factors mentioned above. Interest and other financial income of $6.2 million increased from $5.4 million. Net income attributable to Taro was $11.3 million compared to $4.6 million, resulting in earnings per share of $0.30 compared to earnings per share of $0.12. Excluding the impact from the settlement and loss contingencies charges in the prior year, net income was $66.0 million, resulting in diluted earnings per share of $1.75. Cash Flow and Balance Sheet Highlights Cash flow used in operations for the six months ended September 30, 2022 was $37.7 million compared to $8.0 million for the six months ended September 30, 2021. Excluding the impact from the settlement and loss contingencies charges in both periods, cash flow provided by operations was $30.0 million compared to $94.9 million for the six months ended September 30, 2021. As of September 30, 2022, cash and cash equivalents, short-term bank deposits and marketable securities (both short- and long-term) decreased $58.9 million to $1.2 billion from March 31, 2022; principally the result of a $67.6 million settlement payment to the Direct Purchaser Plaintiff (“DPP”) class in the In re: Generic Pharmaceuticals Pricing Antitrust Litigation, MDL No. 2724. * The September 30, 2022 results include six months’ results from the February 28th acquisition of Alchemee. FDA Approvals and Filings The Company currently has a total of nineteen ANDAs awaiting FDA approval, including three tentative approvals. The Company cautions that the foregoing 2022 financial information (including Alchemee) is unaudited and is subject to change. ************************ 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 2023. 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 (Unaudited) (U.S. dollars in thousands, except share data) Quarter Ended Six Months Ended September 30, September 30, 2022 2021 2022 2021 Sales, net $ 130,498 $ 131,986 $ 287,163 $ 279,099 Cost of sales 83,536 69,941 158,595 139,356 Gross profit 46,962 62,045 128,568 139,743 Operating Expenses: Research and development 11,522 12,495 23,030 25,448 Selling, marketing, general and administrative 42,255 23,684 98,377 47,660 Settlements and loss contingencies — 1,420 — 61,420 Operating (loss) income * (6,815 ) 24,446 7,161 5,215 Financial (income) expense, net: Interest and other financial income (4,296 ) (2,371 ) (6,222 ) (5,413 ) Foreign exchange (income) expense 2,788 (264 ) 3,082 11 Other gain, net 395 2,340 839 2,724 Income (loss) before income taxes (4,913 ) 29,421 11,140 13,341 Tax (benefit) expense (2,100 ) 6,104 (126 ) 8,792 Net (loss) income attributable to Taro * $ (2,813 ) $ 23,317 $ 11,266 $ 4,549 Net (loss) income per ordinary share attributable to Taro: Basic and Diluted * $ (0.07 ) $ 0.62 $ 0.30 $ 0.12 Weighted-average number of shares used to compute net (loss) income per share: Basic and Diluted 37,584,891 37,600,580 37,584,891 37,696,975 May not foot due to rounding. Note: Quarter and six months ended September 30, 2022 includes results from Alchemee (acquired February 28, 2022). * Excluding the settlement and loss contingencies charges of $1.4 million for the quarter ended September 30, 2021, Operating income was $25.9 million, Net income attributable to Taro was $24.7 million, and basic and diluted earnings per share was $0.66. Excluding the settlement and loss contingencies charges of $61.4 million for the six months ended September 30, 2021, Operating income was $66.6 million, Net income attributable to Taro was $66.0 million, and basic and diluted earnings per share was $1.75. TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) September 30, March 31, 2022 2022 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 175,191 $ 251,134 Short-term bank deposits 95,630 47,586 Marketable securities 568,671 522,028 Accounts receivable and other: Trade, net 248,495 246,972 Other receivables and prepaid expenses 53,097 59,727 Inventories 215,524 210,439 TOTAL CURRENT ASSETS 1,356,608 1,337,886 Marketable securities 357,586 435,189 Property, plant and equipment, net 191,489 199,692 Deferred income taxes 124,167 124,882 Goodwill 12,718 11,820 Other assets 64,711 66,893 TOTAL ASSETS $ 2,107,279 $ 2,176,362 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 61,356 $ 68,232 Other current liabilities 313,495 363,886 TOTAL CURRENT LIABILITIES 374,851 432,118 Deferred taxes and other long-term liabilities 26,148 32,799 TOTAL LIABILITIES 400,999 464,917 Taro shareholders' equity 1,706,280 1,711,445 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,107,279 $ 2,176,362 Note: September 30, 2022, includes the Balance Sheet of Alchemee (acquired February 28, 2022). TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Six Months Ended September 30, 2022 2021 (unaudited) (unaudited) Cash flows from operating activities: Net income (loss) $ 11,266 $ 4,549 Adjustments required to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 13,994 12,795 Realized loss on sale of long-lived assets — 551 Change in derivative instruments, net (24 ) (314 ) Effect of change in exchange rate on marketable securities and bank deposits 1,358 404 Deferred income taxes, net 2,245 16,927 Increase (decrease) in trade receivables, net (2,071 ) 16,868 Increase in inventories, net (5,316 ) (2,636 ) Decrease (increase) in other receivables, income tax receivables, prepaid expenses and other 5,739 (2,472 ) Decrease in trade, income tax, accrued expenses and other payables (71,798 ) (59,982 ) Expense from amortization of marketable securities bonds, net 6,940 5,287 Net cash used in operating activities (37,667 ) (8,023 ) Cash flows from investing activities: Purchase of plant, property & equipment, net (3,443 ) (5,831 ) Investment in other intangible assets (68 ) (107 ) Investment in short-term bank deposits, net (48,044 ) (35,573 ) Proceeds from (investment in) marketable securities, net 15,516 (6,442 ) Net cash used in investing activities (36,039 ) (47,953 ) Cash flows from financing activities: Purchase of treasury stock — (24,934 ) Net cash used in financing activities — (24,934 ) Effect of exchange rate changes on cash and cash equivalents (2,237 ) (599 ) Decrease in cash and cash equivalents (75,943 ) (81,509 ) Cash and cash equivalents at beginning of period 251,134 605,177 Cash and cash equivalents at end of period $ 175,191 $ 523,668 Cash Paid during the year for: Income taxes $ 3,091 $ 4,532 Cash Received during the year for: Income taxes $ 14,156 $ 2,351 Non-cash investing transactions: Purchase of property, plant and equipment included in accounts payable $ 3,206 $ 702 Non-cash financing transactions: Purchase of marketable securities, net $ 6,199 $ 630 Note: September 30, 2022, includes the Balance Sheet of Alchemee (acquired February 28, 2022). View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006161/en/Contacts William J. Coote VP, CFO (914) 345-9001 William.Coote@taro.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Taro Provides Results for September 30, 2022 By: Taro Pharmaceutical Industries Ltd. via Business Wire October 27, 2022 at 18:39 PM EDT Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and six months ended September 30, 2022. Quarter ended September 30, 2022* Highlights ─ compared to September 30, 2021 Net sales of $130.5 million decreased, principally due to the continued price decline particularly in the U.S. generic business, as well as a one-time gross-to-net (“GTN”) adjustment. Gross profit of $47.0 million (36.0% of net sales) compared to $62.0 million (47.0% of net sales). Research and development (R&D) expenses of $11.5 million decreased slightly. Selling, marketing, general and administrative expenses (SG&A) of $42.3 million increased $18.6 million. Operating loss of $(6.8) million compared to operating income of $24.4 million. The current year quarter operating loss is primarily attributable to the aforementioned price erosion and GTN adjustment, as well as the on-going impact associated with the integration of our recent acquisition. Interest and other financial income of $4.3 million increased $1.9 million. Tax benefit of $2.1 million compared to tax expense of $6.1 million in the prior year quarter. Net loss attributable to Taro was $(2.8) million compared to net income of $23.3 million, resulting in (loss) per share of $(0.07) compared to earnings per share of $0.62. Excluding the impact from the settlement and loss contingencies charges in the prior year quarter, net income was $24.7 million, resulting in earnings per share of $0.66. Six Months ended September 30, 2022* Highlights ─ compared to September 30, 2021 Net sales of $287.2 million increased $8.1 million. Gross profit of $128.6 million (44.8% of net sales compared to 50.1%) decreased $11.2 million. R&D expenses of $23.0 million decreased $2.4 million. SG&A of $98.4 million increased $50.7 million. Operating income of $7.2 million compared to $5.2 million, Excluding the impact from the settlement and loss contingencies charges in the prior year, operating income was $66.6 million. The current year operating income primarily reflects the six-month impact of the factors mentioned above. Interest and other financial income of $6.2 million increased from $5.4 million. Net income attributable to Taro was $11.3 million compared to $4.6 million, resulting in earnings per share of $0.30 compared to earnings per share of $0.12. Excluding the impact from the settlement and loss contingencies charges in the prior year, net income was $66.0 million, resulting in diluted earnings per share of $1.75. Cash Flow and Balance Sheet Highlights Cash flow used in operations for the six months ended September 30, 2022 was $37.7 million compared to $8.0 million for the six months ended September 30, 2021. Excluding the impact from the settlement and loss contingencies charges in both periods, cash flow provided by operations was $30.0 million compared to $94.9 million for the six months ended September 30, 2021. As of September 30, 2022, cash and cash equivalents, short-term bank deposits and marketable securities (both short- and long-term) decreased $58.9 million to $1.2 billion from March 31, 2022; principally the result of a $67.6 million settlement payment to the Direct Purchaser Plaintiff (“DPP”) class in the In re: Generic Pharmaceuticals Pricing Antitrust Litigation, MDL No. 2724. * The September 30, 2022 results include six months’ results from the February 28th acquisition of Alchemee. FDA Approvals and Filings The Company currently has a total of nineteen ANDAs awaiting FDA approval, including three tentative approvals. The Company cautions that the foregoing 2022 financial information (including Alchemee) is unaudited and is subject to change. ************************ 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 2023. 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 (Unaudited) (U.S. dollars in thousands, except share data) Quarter Ended Six Months Ended September 30, September 30, 2022 2021 2022 2021 Sales, net $ 130,498 $ 131,986 $ 287,163 $ 279,099 Cost of sales 83,536 69,941 158,595 139,356 Gross profit 46,962 62,045 128,568 139,743 Operating Expenses: Research and development 11,522 12,495 23,030 25,448 Selling, marketing, general and administrative 42,255 23,684 98,377 47,660 Settlements and loss contingencies — 1,420 — 61,420 Operating (loss) income * (6,815 ) 24,446 7,161 5,215 Financial (income) expense, net: Interest and other financial income (4,296 ) (2,371 ) (6,222 ) (5,413 ) Foreign exchange (income) expense 2,788 (264 ) 3,082 11 Other gain, net 395 2,340 839 2,724 Income (loss) before income taxes (4,913 ) 29,421 11,140 13,341 Tax (benefit) expense (2,100 ) 6,104 (126 ) 8,792 Net (loss) income attributable to Taro * $ (2,813 ) $ 23,317 $ 11,266 $ 4,549 Net (loss) income per ordinary share attributable to Taro: Basic and Diluted * $ (0.07 ) $ 0.62 $ 0.30 $ 0.12 Weighted-average number of shares used to compute net (loss) income per share: Basic and Diluted 37,584,891 37,600,580 37,584,891 37,696,975 May not foot due to rounding. Note: Quarter and six months ended September 30, 2022 includes results from Alchemee (acquired February 28, 2022). * Excluding the settlement and loss contingencies charges of $1.4 million for the quarter ended September 30, 2021, Operating income was $25.9 million, Net income attributable to Taro was $24.7 million, and basic and diluted earnings per share was $0.66. Excluding the settlement and loss contingencies charges of $61.4 million for the six months ended September 30, 2021, Operating income was $66.6 million, Net income attributable to Taro was $66.0 million, and basic and diluted earnings per share was $1.75. TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) September 30, March 31, 2022 2022 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 175,191 $ 251,134 Short-term bank deposits 95,630 47,586 Marketable securities 568,671 522,028 Accounts receivable and other: Trade, net 248,495 246,972 Other receivables and prepaid expenses 53,097 59,727 Inventories 215,524 210,439 TOTAL CURRENT ASSETS 1,356,608 1,337,886 Marketable securities 357,586 435,189 Property, plant and equipment, net 191,489 199,692 Deferred income taxes 124,167 124,882 Goodwill 12,718 11,820 Other assets 64,711 66,893 TOTAL ASSETS $ 2,107,279 $ 2,176,362 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 61,356 $ 68,232 Other current liabilities 313,495 363,886 TOTAL CURRENT LIABILITIES 374,851 432,118 Deferred taxes and other long-term liabilities 26,148 32,799 TOTAL LIABILITIES 400,999 464,917 Taro shareholders' equity 1,706,280 1,711,445 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,107,279 $ 2,176,362 Note: September 30, 2022, includes the Balance Sheet of Alchemee (acquired February 28, 2022). TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Six Months Ended September 30, 2022 2021 (unaudited) (unaudited) Cash flows from operating activities: Net income (loss) $ 11,266 $ 4,549 Adjustments required to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 13,994 12,795 Realized loss on sale of long-lived assets — 551 Change in derivative instruments, net (24 ) (314 ) Effect of change in exchange rate on marketable securities and bank deposits 1,358 404 Deferred income taxes, net 2,245 16,927 Increase (decrease) in trade receivables, net (2,071 ) 16,868 Increase in inventories, net (5,316 ) (2,636 ) Decrease (increase) in other receivables, income tax receivables, prepaid expenses and other 5,739 (2,472 ) Decrease in trade, income tax, accrued expenses and other payables (71,798 ) (59,982 ) Expense from amortization of marketable securities bonds, net 6,940 5,287 Net cash used in operating activities (37,667 ) (8,023 ) Cash flows from investing activities: Purchase of plant, property & equipment, net (3,443 ) (5,831 ) Investment in other intangible assets (68 ) (107 ) Investment in short-term bank deposits, net (48,044 ) (35,573 ) Proceeds from (investment in) marketable securities, net 15,516 (6,442 ) Net cash used in investing activities (36,039 ) (47,953 ) Cash flows from financing activities: Purchase of treasury stock — (24,934 ) Net cash used in financing activities — (24,934 ) Effect of exchange rate changes on cash and cash equivalents (2,237 ) (599 ) Decrease in cash and cash equivalents (75,943 ) (81,509 ) Cash and cash equivalents at beginning of period 251,134 605,177 Cash and cash equivalents at end of period $ 175,191 $ 523,668 Cash Paid during the year for: Income taxes $ 3,091 $ 4,532 Cash Received during the year for: Income taxes $ 14,156 $ 2,351 Non-cash investing transactions: Purchase of property, plant and equipment included in accounts payable $ 3,206 $ 702 Non-cash financing transactions: Purchase of marketable securities, net $ 6,199 $ 630 Note: September 30, 2022, includes the Balance Sheet of Alchemee (acquired February 28, 2022). View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006161/en/Contacts William J. Coote VP, CFO (914) 345-9001 William.Coote@taro.com
Taro Pharmaceutical Industries Ltd. (NYSE: TARO) (“Taro” or the “Company”) today provided unaudited financial results for the quarter and six months ended September 30, 2022. Quarter ended September 30, 2022* Highlights ─ compared to September 30, 2021 Net sales of $130.5 million decreased, principally due to the continued price decline particularly in the U.S. generic business, as well as a one-time gross-to-net (“GTN”) adjustment. Gross profit of $47.0 million (36.0% of net sales) compared to $62.0 million (47.0% of net sales). Research and development (R&D) expenses of $11.5 million decreased slightly. Selling, marketing, general and administrative expenses (SG&A) of $42.3 million increased $18.6 million. Operating loss of $(6.8) million compared to operating income of $24.4 million. The current year quarter operating loss is primarily attributable to the aforementioned price erosion and GTN adjustment, as well as the on-going impact associated with the integration of our recent acquisition. Interest and other financial income of $4.3 million increased $1.9 million. Tax benefit of $2.1 million compared to tax expense of $6.1 million in the prior year quarter. Net loss attributable to Taro was $(2.8) million compared to net income of $23.3 million, resulting in (loss) per share of $(0.07) compared to earnings per share of $0.62. Excluding the impact from the settlement and loss contingencies charges in the prior year quarter, net income was $24.7 million, resulting in earnings per share of $0.66. Six Months ended September 30, 2022* Highlights ─ compared to September 30, 2021 Net sales of $287.2 million increased $8.1 million. Gross profit of $128.6 million (44.8% of net sales compared to 50.1%) decreased $11.2 million. R&D expenses of $23.0 million decreased $2.4 million. SG&A of $98.4 million increased $50.7 million. Operating income of $7.2 million compared to $5.2 million, Excluding the impact from the settlement and loss contingencies charges in the prior year, operating income was $66.6 million. The current year operating income primarily reflects the six-month impact of the factors mentioned above. Interest and other financial income of $6.2 million increased from $5.4 million. Net income attributable to Taro was $11.3 million compared to $4.6 million, resulting in earnings per share of $0.30 compared to earnings per share of $0.12. Excluding the impact from the settlement and loss contingencies charges in the prior year, net income was $66.0 million, resulting in diluted earnings per share of $1.75. Cash Flow and Balance Sheet Highlights Cash flow used in operations for the six months ended September 30, 2022 was $37.7 million compared to $8.0 million for the six months ended September 30, 2021. Excluding the impact from the settlement and loss contingencies charges in both periods, cash flow provided by operations was $30.0 million compared to $94.9 million for the six months ended September 30, 2021. As of September 30, 2022, cash and cash equivalents, short-term bank deposits and marketable securities (both short- and long-term) decreased $58.9 million to $1.2 billion from March 31, 2022; principally the result of a $67.6 million settlement payment to the Direct Purchaser Plaintiff (“DPP”) class in the In re: Generic Pharmaceuticals Pricing Antitrust Litigation, MDL No. 2724. * The September 30, 2022 results include six months’ results from the February 28th acquisition of Alchemee. FDA Approvals and Filings The Company currently has a total of nineteen ANDAs awaiting FDA approval, including three tentative approvals. The Company cautions that the foregoing 2022 financial information (including Alchemee) is unaudited and is subject to change. ************************ 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 2023. 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 (Unaudited) (U.S. dollars in thousands, except share data) Quarter Ended Six Months Ended September 30, September 30, 2022 2021 2022 2021 Sales, net $ 130,498 $ 131,986 $ 287,163 $ 279,099 Cost of sales 83,536 69,941 158,595 139,356 Gross profit 46,962 62,045 128,568 139,743 Operating Expenses: Research and development 11,522 12,495 23,030 25,448 Selling, marketing, general and administrative 42,255 23,684 98,377 47,660 Settlements and loss contingencies — 1,420 — 61,420 Operating (loss) income * (6,815 ) 24,446 7,161 5,215 Financial (income) expense, net: Interest and other financial income (4,296 ) (2,371 ) (6,222 ) (5,413 ) Foreign exchange (income) expense 2,788 (264 ) 3,082 11 Other gain, net 395 2,340 839 2,724 Income (loss) before income taxes (4,913 ) 29,421 11,140 13,341 Tax (benefit) expense (2,100 ) 6,104 (126 ) 8,792 Net (loss) income attributable to Taro * $ (2,813 ) $ 23,317 $ 11,266 $ 4,549 Net (loss) income per ordinary share attributable to Taro: Basic and Diluted * $ (0.07 ) $ 0.62 $ 0.30 $ 0.12 Weighted-average number of shares used to compute net (loss) income per share: Basic and Diluted 37,584,891 37,600,580 37,584,891 37,696,975 May not foot due to rounding. Note: Quarter and six months ended September 30, 2022 includes results from Alchemee (acquired February 28, 2022). * Excluding the settlement and loss contingencies charges of $1.4 million for the quarter ended September 30, 2021, Operating income was $25.9 million, Net income attributable to Taro was $24.7 million, and basic and diluted earnings per share was $0.66. Excluding the settlement and loss contingencies charges of $61.4 million for the six months ended September 30, 2021, Operating income was $66.6 million, Net income attributable to Taro was $66.0 million, and basic and diluted earnings per share was $1.75. TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) September 30, March 31, 2022 2022 ASSETS (unaudited) (audited) CURRENT ASSETS: Cash and cash equivalents $ 175,191 $ 251,134 Short-term bank deposits 95,630 47,586 Marketable securities 568,671 522,028 Accounts receivable and other: Trade, net 248,495 246,972 Other receivables and prepaid expenses 53,097 59,727 Inventories 215,524 210,439 TOTAL CURRENT ASSETS 1,356,608 1,337,886 Marketable securities 357,586 435,189 Property, plant and equipment, net 191,489 199,692 Deferred income taxes 124,167 124,882 Goodwill 12,718 11,820 Other assets 64,711 66,893 TOTAL ASSETS $ 2,107,279 $ 2,176,362 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 61,356 $ 68,232 Other current liabilities 313,495 363,886 TOTAL CURRENT LIABILITIES 374,851 432,118 Deferred taxes and other long-term liabilities 26,148 32,799 TOTAL LIABILITIES 400,999 464,917 Taro shareholders' equity 1,706,280 1,711,445 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,107,279 $ 2,176,362 Note: September 30, 2022, includes the Balance Sheet of Alchemee (acquired February 28, 2022). TARO PHARMACEUTICAL INDUSTRIES LTD. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Six Months Ended September 30, 2022 2021 (unaudited) (unaudited) Cash flows from operating activities: Net income (loss) $ 11,266 $ 4,549 Adjustments required to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 13,994 12,795 Realized loss on sale of long-lived assets — 551 Change in derivative instruments, net (24 ) (314 ) Effect of change in exchange rate on marketable securities and bank deposits 1,358 404 Deferred income taxes, net 2,245 16,927 Increase (decrease) in trade receivables, net (2,071 ) 16,868 Increase in inventories, net (5,316 ) (2,636 ) Decrease (increase) in other receivables, income tax receivables, prepaid expenses and other 5,739 (2,472 ) Decrease in trade, income tax, accrued expenses and other payables (71,798 ) (59,982 ) Expense from amortization of marketable securities bonds, net 6,940 5,287 Net cash used in operating activities (37,667 ) (8,023 ) Cash flows from investing activities: Purchase of plant, property & equipment, net (3,443 ) (5,831 ) Investment in other intangible assets (68 ) (107 ) Investment in short-term bank deposits, net (48,044 ) (35,573 ) Proceeds from (investment in) marketable securities, net 15,516 (6,442 ) Net cash used in investing activities (36,039 ) (47,953 ) Cash flows from financing activities: Purchase of treasury stock — (24,934 ) Net cash used in financing activities — (24,934 ) Effect of exchange rate changes on cash and cash equivalents (2,237 ) (599 ) Decrease in cash and cash equivalents (75,943 ) (81,509 ) Cash and cash equivalents at beginning of period 251,134 605,177 Cash and cash equivalents at end of period $ 175,191 $ 523,668 Cash Paid during the year for: Income taxes $ 3,091 $ 4,532 Cash Received during the year for: Income taxes $ 14,156 $ 2,351 Non-cash investing transactions: Purchase of property, plant and equipment included in accounts payable $ 3,206 $ 702 Non-cash financing transactions: Purchase of marketable securities, net $ 6,199 $ 630 Note: September 30, 2022, includes the Balance Sheet of Alchemee (acquired February 28, 2022). 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