Very encouraging and consistent with the timing of the buyback. Recall, Taro's last buyback, 3 years ago, was right before a significant increase in sales revenue. This time, it looks like the sales growth will be powered by new product approvals rather than price hikes, which ultimately is much more sustainable over the long term.
Sentiment: Strong Buy
I believe it is fair for all shareholders to do following
(Ideally should have been done in Aug 2013, but better late than never)
1) let independent directors hire independent expert to vet planned clinical & regulatoey milestone timeline for novexatin project to see if it's reasonable and if it could be shortened or expedited in any way.
2) let the independent expert also monitor progress of this project through to its potential launch
3) let the independent expert be responsible also for releasing clinical results promptly (yes timely) to public including medical, investor, analyst community. I'll go one step further to have independent expert hire analyst that covered anacor's kerydin to cover novexatin
Nimish Mehta, founder and director of ResearchDelta Advisors, said he expects Taro's sales to rise 18 percent this fiscal year based on approvals for new dermatology products.
Also understandably optimistic on sun's psoriasis drug. No discussion on novexatin.
High time market starts researching and valuing novexatin just like how it happened for anacor's kerydin
Those generic Alergan assets were good enough for IPXL and they bought them from Teva.
You guessed it –Taro is/ was//will never be interested. The market is full of opportunities, except that Sun-Taro “can not” find them even if they land on Kal’s and Shanghvi’s tip of the nose. I guess Sun-Taro Mangrmrnt is better in lame excuse such as “assets are too expensive” ( Too expensive for Taro but not too expensive for Sun) , “growth through research” ( yes, we have seen what this “growth” means to Taro’s management: Keyvyes is given away for free, Novexatin profits were delayed by fe a few years.)
Agree, they should release the full study results! I wouldn't be surprised if the lawyers made them say on the call that the data looked good but a larger study was needed. If they didn't provide that limited information with the ongoing buyback they might have been open to lawsuits.
While I would like answers to your questions I'm not expecting answers from Taro. I continue to think they will do the bare minimum legally required of them even though Sun isn't so tight lipped with information.
Regarding the balance sheet, even if they finish the buyback around when they report earnings in early August they will have only spent $250 million over almost 5 months. Given their cash flows, they will probably generate close to $200 million in cash flow over the same 5 months so this buyback will not meaningfully change the negative leverage.
It's just appalling that they have not released top line data from the concluded novexatin trial
Also they need to answer why is this project going at such slow pace.
Why was the tag changed to phase2a. Novobiotics had already completed phase2a
The only real inorganic investment made out of the absurdly negative leveraged balance sheet and the upside of this investment has to flow to ALL shareholders not just 1.
Release the data, let's have some analysts(not just that mumbai cs guy) who covered anacors kerydin and valeants jubilia cover novexatin
Put an accelerated timeline to get this to market.
Let's see your actions in this regard
I am wary of funds. Most are traders. Most are here to make a fast buck and without scruples.
Very few interested in doing real work to add shareholder value.
I think considering your pharma & finance background you could aid this board in m&a including potential mergers with ipxl and akrx, besides evaluating p3 assets. Besides you would be minority representation
Btw you may wanna look into this
Looks like it also heavy manipulated to allow Taro (or someone else) to buy more shares at cheaper price. On every new 10K buy demand comes 11K sell, usually Taro SP would go thru the roof with such demand. Last 30 trading days traded 9,36M shares with average volume of 333K a day, previous 30 days 5.1M with average volume of 177K, totaly 14.7M or more then whole minority holding. Periodically traded a big blocks of 15-25K shares, just less then 50 reporting institutions hold more then this amount, but who would sell big porsion of the holding in 1 block?....
Ghee, and we are lucky Taro had a strong quarter, a buyback, no “benami” accounts and therefore no manipulations in share price, management that is trusted by the markets, no risks from inorganic growth, a decent and fair management, management that is full of heart and gives away brand drug –free of charge (if it coincide with a buyback) and mostly we are lucky to have a management that takes its fiduciary duty to all investors very seriously. Where we would have been without all that?
Let console ourselves that somehow and by some luck or coincidence (or not) at least things are working great for the benefit of Sun’s. After all they are Sun.
I think what we have to do is to try and work as a team. I think what we can do that is effective is to work with the following private funds and get talking to them. The following have a decent stake of their portfolio in Taro. We need to work with them first. The ones that i can think of are
HealthInvest Partners (probably based in europe) - 6.31 %
Guardian Point - 6.11%
Greywolf capital - 6.05%
Fort Lo - 5.4%
The actual big funds - Schroder, Acadian, Matthews, have a larger stake in Taro but their portfolio ownership is extremely small. For them Taro is not a big investment and may not engage.
Lets try to find some point contact for the 4 funds and see what they think. I am positive that together, we may be able to tilt the boat. I will go ahead and try to get in touch with someone at HealthInvest partners. Let me know if you or anyone on the board can follow up with others.
To be very honest, given Sun's history and how the mgmt has absolute control, the best think for the minority shareholders of Taro will be fair buyout offer. I do not know what the number is but given how unfair Sun is and will continue to be so, we will be better of accepting a middle ground.
This was a serious question. Why don't you seriously consider asking for a board position.
Based solely on your line of questioning and your messages here, you will do a world of good for minority shareholders here. You could even put together an attractive m&a proposal for merger with akrx(run by an Indian ceo) or ipxl. We all know present management has not made a single acquisition over the last 4 years that has resulted in revenue growth for shareholders. The current strategy is working well for them, good results of taro continue the cash hoard , however share price is stuck(2years it's gone down,) and the only thing they spend this cash is buyback which increases their stake & meanwhile consolidation of unleveragefbalance taro into sun allows them to make huge acquisitions which they have done. For minority at taro, buyback has not benefited. What use is a buyback if share price does not increase?
You have pharma background. By your posts I can tell you have finance background. And by your question, we know you have gumption. ! Why not use it to serve a larger shareholder goal in public company
In fact sec should do everything possible to promote shareholder representation in board
I bet if u screen public stocks u probably wouldn't a single stock with such negative leverage for this long with the profitability it has had
with taros consistent profitability, super negative leveraged balance sheet,
Taro could easily merge or buy IPXL or AKRX, expand its portfolio, exploit cost & r&d synergies, new markets.
Sun would not let Taro buy any of those assets.!!
Sun is determined not to let Taro’s business grow, however Sun may buy it for Sun.
Sun has a lot to lose if they let Taro to grow inorganically – if they do, all of a sudden the mistrust they have been building (in themselves) will evaporate, investors will start trusting “Taro’s management”, Taro’s share will soar – definitely against Sun’s interests who is intending in buying out Taro's minority on the cheap. It is not only their business strategy ,iut is also in their blood.
If have to choose between assets and phase 2 or 3 products. I definitely choose assets. Assets can be incorporated into Taro relatively quickly and start yielding profits in relatively short time. Drugs from the new assets may be sold in new markets, opening new markets for the rest of Taro’s products (that is another reason , Sun would not allow it.) on the other side, phase 2-3 products may take forever to yield the first penny. Also, they are prone to shenanigans like - the last one Sun-Taro did on Novexatin. But that is a moot point.
I don't like these assets. They should focus on buying phase 3 assets in all therapy areas
Just like what sun is doing. When u have $1.2b in cash and no debt surely you can buy expertise (people) too. I go back gileads acquisition of sovialdi
Taro could buy both unitswith cash or any of them cheaper then Valeant paid in 2013. The question does it worth it?
The two businesses could fetch as much as $500 million and attract interest from other pharmaceutical companies, the people said, asking not to be identified because the deliberations are private. The sale process could start as early as this week, they said.
Representatives at Valeant and Morgan Stanley declined to comment.
Valeant shares rose 1.1 percent to $24.04 at 9:41 a.m. in New York. The stock has slumped 76 percent this year, valuing the company at $8.2 billion.
Valeant bought the maker of prescription skin-care products Obagi in 2013 for about $418 million. Later that year, it agreed to buy Solta for about $250 million. Solta designs, makes and sells medical devices for aesthetic applications such as wrinkle and acne treatments.