FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of March, 2005
Taro Pharmaceutical Industries Ltd.
(Translation of registrant's name into English)
14 Hakitor Street, Haifa Bay 26110, Israel
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F __X__ Form 40-F_____
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).
Yes_______ No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- _________________)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: March 3, 2005
Taro Pharmaceutical Industries Ltd.
By: /s/ Kevin Connelly
------------------------------
Name: Kevin Connelly
Title: Senior Vice President
Chief Financial Officer
Taro to Divest ElixSure and Kerasal OTC Products to Alterna
under Exclusive License; Taro Will Manufacture
and Supply Products to Alterna
Business Editors/Health/Medical Writers
HAWTHORNE, N.Y.--(BUSINESS WIRE)--March 3, 2005--Taro
Pharmaceutical Industries Ltd. (NASDAQ: TARO) and its subsidiaries
("Taro" or the "Company") reported today that the Company has entered
into multi-year agreements to divest its over-the-counter ("OTC")
ElixSure(R) and Kerasal(R) products in North America to Alterna, LLC.
The agreements provide that Taro will be the exclusive
manufacturer of ElixSure(R) and Kerasal(R), and that Alterna will be
the exclusive marketer and distributor of these proprietary OTC
product lines, in the United States, Canada and Mexico, with an option
to purchase the ElixSure(R) and Kerasal(R) brands in North America. In
addition to payment for goods manufactured, Taro will receive
royalties on sales during the term of the agreements, provide
transition services to Alterna for a period of time, and receive a
warrant for a 5% common equity position in Alterna. The specific terms
of the agreements have not been disclosed.
About the Products
The Kerasal(R) product line comprises three exfoliating
moisturizers for the feet. Since its launch, Kerasal(R) ointment has
grown to become a leading product in the footcare category.
ElixSure(R) children's medicines are based on Taro's proprietary
NonSpil(R) liquid drug delivery system. The ElixSure(R) line includes
spill-resistant formulations for fever/pain, cough and congestion.
ElixSure(R) was one of just seven products, out of more than 2,000
candidates, to receive the Good Housekeeping Institute's prestigious
"Good Buy" Award for 2004.
"During the past two years, Taro has invested substantial
resources in the development of these OTC brands and in establishing
their nationwide distribution and recognition. We believe that
Alterna's experienced management and exclusive dedication to the OTC
market will enable these products to reach their full potential. At
the same time, by focusing on the research, development and marketing
of prescription products, both generic and proprietary, we will be in
a better position to maximize returns to Taro shareholders," said
Barrie Levitt, M.D., Chairman of the Company.
"Alterna is very pleased to have acquired the exclusive marketing
rights to the Kerasal(R) and ElixSure(R) brands in North America. We
think they have solid market positions and have great potential. We
are also looking forward to further expanding and strengthening our
product portfolio as we move forward with other product acquisitions,"
said Bruce Tomason, President and CEO of Alterna.
About Alterna
Alterna, LLC is a company formed to acquire, develop and market
niche over-the-counter medicine products. Established in 2004, Alterna
is actively seeking the acquisition of other over-the-counter medicine
products that possess unique characteristics. AIG Healthcare Partners,
L.P., a private equity fund focused exclusively on making investments
in healthcare businesses, is an investor in Alterna.
For further information on Alterna, please visit
www.alternallc.com.
About Taro
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, 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, including, but not limited to, statements regarding the
agreement reached between the Company and Alterna regarding the
ElixSure(R) and Kerasal(R) product lines, the benefits thereof and
other statements that are not historical facts. Although Taro
Pharmaceutical Industries Ltd. believes the expectations reflected in
such forward-looking statements to be based on reasonable assumptions,
as such expectations are subject to significant risks and
uncertainties, it can give no assurance that its expectations will be
attained. Factors that could cause actual results to differ include
industry and market conditions; slower than anticipated penetration of
new markets; physician, pharmacist or patient acceptance of Kerasal(R)
and ElixSure(R) products or physician recommendations thereof; Taro's
ability to supply the products in question and Alterna's ability to
market them successfully; changes in the Company's financial position;
regulatory actions; 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 on which they are
made. The Company 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: Taro Pharmaceutical Industries Ltd.
Daniel Saks, 914-345-9000 ext. 6208
or
Kevin Connelly, 914-345-9000 ext. 6338