Sun Pharmaceuticals won a temporary relief from the Tel Aviv District Court on shareholders' meeting of the Taro Pharmaceutical Industries Ltd. that was set to limit liabilities of the directors of Taro in the event of mergers and corporate restructuring. The district court issued a temporary injunction to block Taro's shareholders from considering resolutions regarding indemnification until 21 days from the date on which Taro provides the documents demanded by Sun. Sun Pharma had filed a case against Taro in May challenging the validity of the indemnification. It also asked Taro for minutes of the board meetings and financial reports, which the Israeli company did not provide. Taro has not published its financial reports since 2006. Sun Pharma had invested $454 million in Taro after signing a merger agreement with the foreign firm in May 2007. Exactly after a year, Taro broke the agreement on the plea that the merger was never approved by its shareholders and that the price ($7.75 per share) offered by Sun was 'too low'. Since then, the two parties are engaged in a legal tussle.

Taro Pharmaceutical Industries Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported operating income of $20,633,000, net income of $12,491,000 or $0.31 diluted per share and net sales of $96,817,000 against operating income of $17,697,000, net income of $13,049,000 or $0.32 diluted per share and net sales of $88,139,000 for the same period a year ago. For the six months, the company reported operating income of $34,654,000, net income of $23,595,000 or $0.58 diluted per share and net sales of $181,710,000 against operating income of $29,205,000, net income of $20,587,000 or $0.51 diluted per share and net sales of $166,198,000 for the same period a year ago. The decrease in net income is the result of increased financial expenses in the amount of $3.7 million, principally related to the weakening of the U.S. dollar against the Canadian dollar. The company noted that its first half 2009 earnings were impacted by $4.2 million of expenses related to operating the company's Irish facility. The company also reported net cash provided by operating activities of $13,531,000 and purchase of property, plant and equipment, net of related grants of $1,636,000 against net cash provided by operating activities of $23,116,000 and purchase of property, plant and equipment, net of related grants of $1,493,000 for the same period a year ago.

Taro Pharmaceutical Industries Ltd., Special/Extraordinary Shareholders Meeting, Sep 14, 2009, at 08:00 Israel Standard Time. Location: 14 Hakitor Street, Haifa Bay,Israel. Agenda: To elect Ms. Irith Hausner as a statutory external director, as defined under Israeli law to the board of directors for a three-year term; to elect Mr. Yaron Saporta as an external director to the board of directors for a three-year term; to ratify, confirm and approve the company's exemption and indemnification undertakings, as well as to confirm and approve the company's providing indemnification with respect to the Actions to directors who are not controlling persons and who served, are serving and may in the future serve, the company, its subsidiaries and/or affiliates; and to approve undertakings to exempt from liability and to indemnify new External Directors, upon their election to the Board of Directors .