UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

                                  For the month of May, 2016

                                  Commission File Number 001-35463
Taro Pharmaceutical Industries Ltd.
(Translation of registrant's name into English)

14 Hakitor Street, Haifa Bay 2624761, 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       Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

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  


 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____.
 
Taro Pharmaceutical Industries Ltd.
c/o Taro Pharmaceuticals U.S.A., Inc.
Three Skyline Drive
Hawthorne, New York 10532
(NYSE: TARO)

 
FOR IMMEDIATE RELEASE
 
CONTACTS:
 
Michael Kalb
William J. Coote
GVP, CFO
 
(914) 345-9001
(914) 345-9001
Michael.Kalb@taro.com
William.Coote@taro.com
 
 
TARO PROVIDES RESULTS FOR YEAR ENDED MARCH 31, 2016

Hawthorne, NY, May 26, 2016 - Taro Pharmaceutical Industries Ltd. (NYSE: TARO) ("Taro" or the "Company") today provided unaudited financial results for the quarter and year ended March 31, 2016.

Quarter ended March 31, 2016 Highlights - compared to March 31, 2015
●
Net sales of $265.1 million, increased $20.9 million, or 8.6%, on relatively flat volumes
●
Gross profit of $224.2 million increased $24.6 million, as Cost of Goods decreased $3.8 million; and as a percentage of net sales increased to 84.6% as compared to 81.8%
●
Research and development expenses decreased 16.4% to $19.9 million
●
Selling, marketing, general and administrative expenses remained relatively flat
●
Operating income increased $28.2 million to $181.7 million
●
Net Income was unfavorably impacted by an $80.0 million fluctuation in foreign exchange (FX) from income of $32.5 million in 2015 to an expense of $47.5 million in 2016, principally the result of the strength of the Canadian dollar vs. U.S. dollar
●
Tax expense decreased $13.9 million to $23.0 million resulting in an effective tax rate of 16.6% compared to 19.5%
●
Net income attributable to Taro was $115.0 million compared to $152.3 million, resulting in diluted earnings per share of $2.68 compared to $3.56

Year ended March 31, 2016 Highlights - compared to March 31, 2015
●
Net sales of $950.8 million, increased $87.8 million, or 10.2%, despite a 5% volume decline
●
Gross profit increased $102.4 million to $779.0 million and as a percentage of net sales, was 81.9% compared to 78.4%
●
Research and development expenses increased 8.6% to $71.2 million
●
Selling, marketing, general and administrative expenses increased $4.7 million to $92.4 million
●
Settlements and loss contingencies was a $1.0 million expense compared to a $4.2 million credit in 2015
●
Operating income increased $86.8 million to $614.5 million
●
FX income decreased $34.6 million to $7.1 million, principally the result of the strength of the Canadian dollar vs. U.S. dollar in the fourth quarter of 2016
●
Tax expense remained relatively flat, however the effective tax rate improved to 15.0% from 16.5%
●
Net income attributable to Taro was $540.9 million compared to $484.3 million, a $56.7 million increase, resulting in diluted earnings per share of $12.62 compared to $11.31

Cash Flow and Balance Sheet Highlights - compared to March 31, 2015
●
Cash, including marketable securities increased to $1.2 billion from $920.2 million
●
Cash provided by operations for the period ended March 31, 2016 was $395.1 million, as compared to $406.8 million
●
Debt of $5.9 million was paid-off during the year
 
Mr. Kal Sundaram, Taro’s CEO stated, “Overall, we are pleased with our strong operating performance.  Additionally, our 9% year-over-year increase in R&D demonstrates our commitment to growing our pipeline of quality products; further evidenced by ten (10) FDA filings this year. However, we continue to face broader industry challenges in the generic landscape, driven by ever-increasing competition and customer consolidation.   Nevertheless, we remain cautiously optimistic about our medium and long-term growth and remain focused on strengthening our R&D pipeline and other initiatives that continue to keep us well positioned in the market.”
 
- more -
 
Taro Pharmaceutical Industries Ltd.
Page of  2 of 6

FDA Approvals and Filings
The Company recently received approvals from the U.S. Food and Drug Administration ("FDA") for four Abbreviated New Drug Application ("ANDA") Naftifine Hydrochloride Cream USP, 2%, Oxiconazole Nitrate Cream, 1%, Diclofenac Sodium Gel, 2% and Fluocinolone Acetonide Topical Oil, 0.01% (Body Oil and Scalp Oil). For the year ended March 31, 2016, the total number of FDA filings was ten (10). The Company currently has a total of thirty-six ANDAs awaiting FDA approval.
Share Repurchase Program
On March 15, 2016, the Company announced that its Board of Directors approved a $250 million share repurchase of ordinary shares. Repurchases may be made from time to time at the Company's discretion, based on ongoing assessments of the capital needs of the business, the market price of its stock, and general market conditions. No time period has been set for the repurchase program, and any such program may be suspended or discontinued at any time. The repurchase authorization enables the Company to purchase its ordinary shares from time to time through open market purchases, negotiated transactions or other means, including 10b5-1 trading plans in accordance with applicable securities laws or other restrictions. The table below presents the purchase of ordinary shares as of May 24, 2016, which were acquired in accordance with a 10b5-1 program:
Period
  
Total Number of
Shares Purchased
as Part of the
Current Program
    
Average
Price Paid
per Share
    
Dollar Value of
Shares that May Yet
Be Purchased Under
the Program
  
March 17, 2016 - March 31, 2016
    
67,339
    
$
140.30
        
April 1, 2016 - May 24, 2016
    
599,504
    
$
135.76
        
TOTAL
    
666,843
    
$
136.22
    
$
159,165,488
  
Keveyis
On May 2, 2016, Taro announced it will now make Keveyis™ (dichlorphenamide) available to distributors at no cost for the treatment of primary periodic paralysis. As a result, Taro will cease commercial sales and related promotional activities for Keveyis and bear all costs associated with its manufacture. In the near term, patients will continue to receive the medicine through its specialty pharmacy partner, Diplomat as the Company evaluates the best option for keeping pharmacy dispensing fees to patients as low as possible. 
Earnings Call (8:30 am EST, May 27, 2016)
As previously announced, the Company will host an earnings call at 8:30 am EST on Friday, May 27, 2016, where senior management will discuss the Company's performance and answer questions from participants. This call will be accessible through an audio dial-in and a web-cast. Audio conference participants can dial-in on the numbers below:
●
Participant Toll-Free Dial-In Number: +1 (844) 421-0601  ID: 18504447
●
Participant International Dial-In Number: +1 (716) 247-5800 ID: 18504447
●
Web-cast: More details are provided on our website, www.taro.com
To participate in the audio call, please dial the numbers provided above five to ten minutes ahead of the scheduled start time. The operator will provide instructions on asking questions before the call. The transcript of the event will be available on the Company's website at www.taro.com. An audio playback will be available for fifteen (15) days following the call.
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 Pharmaceutical Industries Ltd., please visit the Company's website at www.taro.com.

 
Taro Pharmaceutical Industries Ltd.
Page of 3 of 6
 
SAFE HARBOR STATEMENT
The unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments necessary to present fairly the financial condition and results of operations of the Company. The unaudited consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements included in the Company's Annual Report on Form 20-F, as filed with the SEC.
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 do not describe historical facts or that refer or relate to events or circumstances the Company "estimates," "believes," or "expects" to happen or similar language, and statements with respect to the Company's financial performance, availability of financial information, and estimates of financial results and information for fiscal year 2017. Although the Company believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurances that its expectations will be attained. Factors that could cause actual results to differ include general domestic and international economic conditions, industry and market conditions, changes in the Company's financial position, litigation brought by any party in any court in Israel, the United States, or any country in which Taro operates, regulatory and legislative actions in the countries in which Taro operates, 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 are applicable only as of the date on which they are made. The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.
**Financial Tables Follow**
Taro Pharmaceutical Industries Ltd.
Page of 4 of 6
 
 
TARO PHARMACEUTICAL INDUSTRIES LTD.
  
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
  
(U.S. dollars in thousands, except share data)
  
   
   
Quarter Ended
    
Year Ended
  
   
March 31,
    
March 31,
  
   
2016
    
2015
    
2016
    
2015
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(audited)
  
Sales, net
  
$
265,073
    
$
244,180
    
$
950,751
    
$
862,944
  
Cost of sales
    
40,749
      
44,545
      
169,743
      
186,359
  
Impairment
    
95
      
-
      
2,042
      
-
  
Gross profit
    
224,229
      
199,635
      
778,966
      
676,585
  
                                 
Operating Expenses:
                                
Research and development
    
19,948
      
23,865
      
71,160
      
65,510
  
Selling, marketing, general and administrative
    
22,561
      
22,229
      
92,365
      
87,644
  
Settlements and loss contingencies
    
-
      
-
      
973
      
(4,200
)
Operating income
    
181,720
      
153,541
      
614,468
      
527,631
  
                                 
Financial (income) expense, net:
                                
Interest and other financial income
    
(2,896
)
    
(3,087
)
    
(12,604
)
    
(9,677
)
Foreign exchange expense (income)
    
47,478
      
(32,481
)
    
(7,068
)
    
(41,634
)
Other gain, net
    
860
      
395
      
2,680
      
2,738
  
Income before income taxes
    
137,999
      
189,504
      
636,820
      
581,680
  
Tax expense
    
22,950
      
36,872
      
95,313
      
96,059
  
Income from continuing operations
    
115,049
      
152,632
      
541,507
      
485,621
  
Net loss from discontinued operations attributable to Taro
    
(34
)
    
(314
)
    
(236
)
    
(787
)
Net income
    
115,015
      
152,318
      
541,271
      
484,834
  
Net income attributable to non-controlling interest
    
65
      
26
      
339
      
577
  
Net income attributable to Taro
  
$
114,950
    
$
152,292
    
$
540,932
    
$
484,257
  
                                 
Net income per ordinary share from continuing operations
attributable to Taro:
                  
Basic
  
$
2.68
    
$
3.56
    
$
12.63
    
$
11.32
  
Diluted
  
$
2.68
    
$
3.56
    
$
12.63
    
$
11.32
  
                                 
Net loss per ordinary share from discontinued operations
attributable to Taro:
                  
Basic
  
$
(0.00
)*
  
$
(0.00
)*
  
$
(0.01
)
  
$
(0.01
)
Diluted
  
$
(0.00
)*
  
$
(0.00
)*
  
$
(0.01
)
  
$
(0.01
)
                                 
Net income per ordinary share attributable to Taro:
                                
Basic
  
$
2.68
    
$
3.56
    
$
12.62
    
$
11.31
  
Diluted
  
$
2.68
    
$
3.56
    
$
12.62
    
$
11.31
  
                                 
Weighted-average number of shares used to compute net
income per share:
                          
Basic
    
42,828,338
      
42,833,533
      
42,832,241
      
42,833,533
  
Diluted
    
42,828,338
      
42,833,533
      
42,832,241
      
42,833,750
  
                                 
* Amount is less than $0.01
                                
May not foot due to rounding.
 
                                
 
Taro Pharmaceutical Industries Ltd.
Page of 5 of 6
 
 
TARO PHARMACEUTICAL INDUSTRIES LTD.
  
SUMMARY CONSOLIDATED BALANCE SHEETS
  
(U.S. dollars in thousands)
  
             
   
March 31,
    
March 31,
  
   
2016
    
2015
  
ASSETS
  
(unaudited)
    
(audited)
  
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
576,757
    
$
481,641
  
Short-term and current maturities of long-term bank deposits
    
648,297
      
434,899
  
Restricted short-term bank deposits
    
-
      
199
  
Marketable securities
    
3,572
      
3,458
  
Accounts receivable and other:
                
Trade, net
    
238,611
      
222,427
  
Other receivables and prepaid expenses
    
270,724
      
250,911
  
Inventories
    
138,553
      
120,272
  
Long-term assets held for sale, net
    
1,081
      
-
  
TOTAL CURRENT ASSETS
    
1,877,595
      
1,513,807
  
Long-term bank deposits
    
115,173
      
30,175
  
Property, plant and equipment, net
    
159,459
      
153,045
  
Other assets
    
35,806
      
40,718
  
TOTAL ASSETS
  
$
2,188,033
    
$
1,737,745
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
CURRENT LIABILITIES:
                
Current maturities of long-term debt
  
$
-
    
$
912
  
Trade payables and other current liabilities
    
245,462
      
309,093
  
TOTAL CURRENT LIABILITIES
    
245,462
      
310,005
  
Long-term debt, net of current maturities
    
-
      
4,976
  
Deferred taxes and other long-term liabilities
    
5,427
      
5,381
  
TOTAL LIABILITIES
    
250,889
      
320,362
  
                 
Taro shareholders' equity
    
1,931,142
      
1,411,720
  
Non-controlling interest
    
6,002
      
5,663
  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
2,188,033
    
$
1,737,745
  
 
Taro Pharmaceutical Industries Ltd.
Page of 6 of 6
 
 
TARO PHARMACEUTICAL INDUSTRIES LTD.
  
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
  
(U.S. dollars in thousands)
  
             
   
Year Ended March 31,
  
   
2016
    
2015
  
   
(unaudited)
    
(audited)
  
Cash flows from operating activities:
            
Net income
  
$
541,271
    
$
484,834
  
Adjustments required to reconcile net income to net cash provided by operating activities:
          
Depreciation  and amortization
    
14,848
      
15,798
  
Impairment for long-lived assets
    
2,042
      
90
  
Realized loss (gain) on sale of marketable securities and long-lived assets
    
74
      
(209
)
Change in derivative instruments, net
    
(6,137
)
    
5,483
  
Effect of change in exchange rate on  inter-company balances
    
(2,268
)
    
(18,167
)
Foreign exchange effect of bank deposits
    
(5,510
)
    
-
  
Decrease in long-term debt due to currency fluctuations
    
-
      
(1,030
)
Deferred income taxes, net
    
(11,976
)
    
(70,387
)
Increase in trade receivables, net
    
(16,386
)
    
(85,277
)
Increase in inventories, net
    
(19,013
)
    
(7,027
)
(Decrease) increase in other receivables, income tax receivable, prepaid expenses and other
    
(42,858
)
    
14,359
  
(Decrease) increase in trade, income tax and other payables and accrued expenses
    
(58,959
)
    
68,321
  
Net cash provided by operating activities
    
395,128
      
406,788
  
                 
Cash flows from investing activities:
                
Purchase of plant, property & equipment
    
(18,972
)
    
(19,997
)
(Investment in) proceeds from other intangible assets and long-lived assets
    
(134
)
    
59
  
Proceeds from (investment in) other assets
    
35,000
      
(31,050
)
Investment in short-term bank deposits
    
(220,102
)
    
(43,344
)
Proceeds from restricted bank deposits
    
199
      
28
  
(Investment in) proceeds from long-term deposits and other assets
    
(80,587
)
    
2,112
  
(Investment in) proceeds from marketable securities, net
    
(135
)
    
111
  
Net cash used in investing activities
    
(284,731
)
    
(92,081
)
                 
Cash flows from financing activities:
                
Proceeds from issuance of shares, net
    
-
      
26
  
Purchase of treasury stock
    
(9,450
)
    
-
  
Repayment of long-term debt
    
(5,888
)
    
(10,944
)
Net cash used in financing activities
    
(15,338
)
    
(10,918
)
                 
Effect of exchange rate changes on cash and cash equivalents
    
57
      
(32,115
)
Increase in cash and cash equivalents
    
95,116
      
271,674
  
Cash and cash equivalents at beginning of period
    
481,641
      
209,967
  
Cash and cash equivalents at end of period
  
$
576,757
    
$
481,641
  
 
 
#####
 
 
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: May 26, 2016
TARO PHARMACEUTICAL INDUSTRIES LTD.

By: /s/ Subramanian Kalyanasundaram
Name: Subramanian Kalyanasundaram
 Title: Chief Executive Officer and Director