Taro Announces Planned Discontinuation of Manufacturing Operations at Its Irish Facility
HAWTHORNE, N.Y.--(BUSINESS WIRE)--Feb 18, 2010 - Taro Pharmaceutical Industries Ltd. (“Taro,” the “Company,” Pink Sheets: TAROF) today announced that it will discontinue manufacturing operations at the sterile manufacturing facility of its Irish subsidiary, Taro Pharmaceuticals Ireland Limited, in Roscrea, Ireland (“Taro Ireland”). The discontinuance of manufacturing operations is scheduled to take place by the end of March 2010. Taro Ireland plans to continue to maintain the physical plant in good condition.
While the discontinuance of manufacturing operations will impact approximately 30 employees at the facility, Taro said it is no longer in the best interests of the Company or its shareholders to continue to incur losses at the facility or make the significant capital investments that would be required to achieve the level of operating efficiency found at Taro's other manufacturing facilities. The discontinuance of operations, following both cash and non-cash one-time expenses associated with the decision, is expected to improve the Company's earnings and cash flow almost immediately.
The Company has communicated its decision to the Taro Ireland employees and has commenced consultations with the affected employees. Taro believes that it has sufficient inventories of sterile products to meet all existing commitments to its customers.
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
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 and statements that refer or relate to events or circumstances that the Company “believes,” “plans” or “expects” to happen, or similar language. Although Taro believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurance that its expectations will be attained. Taro believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission (“SEC”) and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Certain factors that could cause or contribute to such differences include, among other things, completion of the discontinuation of manufacturing at the Company's sterile manufacturing facility in Ireland (“Taro Ireland”), labor matters related to the discontinuation of manufacturing at Taro Ireland, the impact of the discontinuation of manufacturing at Taro Ireland on the Company's financial results, the ability of Taro Ireland to meet all existing customer commitments, the outcome of ongoing litigation with Sun Pharmaceutical Industries Ltd., 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 actions 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 speak only as of the date they are made. Taro undertakes no obligation to update, change or revise any forward-looking statements, whether as a result of new information, additional or subsequent developments or otherwise.
Contact: Kekst and Company
Roanne Kulakoff, 212-521-4827
Posted: February 2010