Acquires ANDAs and OTC Operations
Hawthorne, New York, May 8, 2002 - Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS: TARO) today announced that it has purchased substantially all the assets of Thames Pharmacal Company, Inc. ("Thames"), a privately-held New York manufacturer of prescription and over-the-counter pharmaceuticals.
Thames had sales of approximately $9 million in 2001. The transaction was effected through a cash consideration of less than one times 2001 sales. The acquired assets include the rights to all of Thames’ generic prescription and over-the-counter ("OTC") products, as well as Thames’ laboratories and manufacturing operations.
Thames manufactures and markets a number of dermatologic prescription and OTC generic products, which complement Taro’s broad line of topical corticosteroids and antifungal products. "We expect to achieve considerable leverage through the integration of Thames’ product portfolio into Taro’s sales and marketing programs," said Robert Mauro, Group Vice President of Sales for North America, Taro Pharmaceuticals U.S.A., Inc. "We also have the opportunity to optimize the manufacturing of Thames’ products through the integration of our two companies."
Advest, Inc. served as financial advisors to Thames in the transaction.
About Thames
Thames, established in 1978, employs approximately 60 people in its leased facilities, which include laboratories, manufacturing and warehousing operations in Ronkonkoma, New York.
Thames’ facilities and operations have been regularly inspected and its Abbreviated New Drug Applications have been approved by the United States Food and Drug Administration. Thames sells principally to distributors, wholesalers, and retail drug chains. Its products are available under the Thames label or in private label packaging. In addition, Thames manufactures products for other pharmaceutical companies, including custom formulations.
Contact Information
Effective immediately, Thames products will be sold by a wholly owned subsidiary of Taro called Thames Pharmaceuticals, Inc. Customers and suppliers should contact Thames as they have in the past.
Taro 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.
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 are not describing historical facts, such as comments describing what the company or its officers "expect," or comments describing an "opportunity," or similar statements; comments concerning Taro’s expectations regarding the acquisition of the assets of Thames Pharmacal, including comments concerning the sales potential of Thames’ products, the use of Thames’ product portfolio to leverage Taro’s marketing programs, the complementary nature of the product lines of Thames and Taro, and the integration of the operations of Thames and Taro. Although Taro believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ include the viability of Thames’ operations following Taro’s acquisition of Thames assets, difficulties in integrating the operations of Thames and Taro, non-acceptance of Thames products in the marketplace, industry and market conditions, slower than anticipated regulatory approval of new generic products, other regulatory actions, slower than anticipated penetration of new markets, changes in the Company’s financial position, the situation in the Middle East and other risks detailed from time to time in the Company’s SEC reports, including its Prospectus dated October 1, 2001.
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