Taro pharmaceuticals news

Taro sent a letter to shareholder IsZo Capital Management L.P. rejecting IsZo's claim that Taro reported 3Q12 results that were "suspiciously inconsistent" with prescription and sales data from information services provider IMS. IsZo said that based on IMS data, Taro should have reported 3Q12 sales of $176.4 million. Taro instead reported 3Q12 sales of $161 million. The shareholder said that the results are "inconsistent with the historic correlation between IMS and Taro net sales data, substantiating market rumors that Taro is gaming its reserves" for returned products to "artificially deflate net sales data." IsZo said that the lower-than-expected sales "conveniently" came out a month prior to the Dec. 6 special shareholder meeting to vote upon a proposed merger between Taro and Sun Pharmaceutical Industries Ltd. (BSE:524715; NSE:SUNPHARMA, Mumbai, India). Taro said that IsZo's allegation is "simply untrue" and that IMS data is not reliable or prepared for consolidated financial reporting analysis. Taro said that the accounting methods it uses to estimate its reserves are "consistently applied" each quarter and that it has independent auditors perform certain "agreed upon procedures" on its financial statements. ...