Taro Focussing For Expansion

Israeli generics company Taro Pharmaceutical Industries achieved record sales and maintained high gross profit margins while preparing for preapproval inspections by the US Food and Drug Administration of its facilities in both Israel and Canada.

Taro's focus in 1995, and which is continuing into 1996 and 1997, was investing in personnel and infrastructure that will pave the way for further development and expansion (see also pages 24 and 25). These investments allowed Taro to complete FDA preapproval inspections at each of its pharmaceutical and chemical synthesis facilities. While these expenditures hindered short-term growth in earnings, they created a foundation for significant future gains in revenues and profitability, says the company.

The FDA preapproval inspections related to several of the company's Abbreviated New Drug Applications. Taro has 10 ANDAs pending with the FDA and anticipates several approvals, which should result in significant new product introductions during 1996 and 1997.