Vous êtes sur la page 1sur 3

Recipient: Letter:

Taro's Management and Board Greetings, We are shareholders of Taro. As you maybe aware, we have been asking some of these questions for over a year. In light of the annual shareholder meeting on Sept 9th 2013, we would like to submit our shareholder proposals and questions. It is our opinion that these items pertain to unlocking significant shareholder value and will ensure Taro's share price reaches its fair potential. They are the following: 1. Why doesn't our company sell International rights of its products to a global pharma with international presence (Eg: Astrazeneca, GlaxoSmithKline, Pfizer, Bayer) so its 180+ products could be sold in the markets of Japan, Australia, South Africa, South America, Eastern Europe, India, Russia, China and South Korea. Currently the rest of world markets (ex-USA, ex-CAN, ex-UK and ex-Israel) constitutes only 1% of sales We believe the value of the international rights to Taro's 180+ products could be very significant(we want to be responsible and not throw a number.). We request the company waste no time and hire an independent investment bank to value and explore the sale of such rights. A product-by-product and market-by-market analysis needs to be undertaken. Also, increasingly pharma companies are looking at international markets for growth. Galderma sells its products in 70 countries and approximately 50% of its sales or Euro 800m is from Europe, Latin America and Asia Pacific. Galderma has also witnessed >20% year-over-year growth in the regions of Asia Pacfic and Latin America, including 120% year-on-year growth in China. In Valeant's(a dermatology specialty company) recent earnings, sales from emerging markets grew 26% year-over-year driven by continued strong growth in Poland, Russia, Brazil, Mexico, South East Asia and South Africa. 2. The company has accumulated cash of $614m and has little debt. Why doesn't the company purpose this cash towards acquiring dermatology specialty asset(s). Market peers have been pursuing aggressive growth by way of acquisitions. We believe Taro could leverage its well established brand among medical practitioners and patients by entering the attractive high end aesthetic market. Some recent acquisitions with this rationale are Valeant's acquisition of Obagi, SkinMedica's

acquisition of Allergan and Sun Pharma's acquisition of DUSA. Here is a listing of acquisition by competitors. Perrigo's acquisitions in last 3 years: Paddock lab ($543m), Rosemont ($283m), Sergeants ($285m), Cobrek ($45m), Velcera ($160m), PBM holdings ($808m), Orion ($48m), Elan Pharma($8.6b) Actavis acquisitions in last 3 years: Warner Chilcott($5b), Watson(EU 4.25), Ascent Pharmahealth Ltd(AU $375m), Uteron Pharma SA($305m) 3. We strongly urge you to build robust corporate governance and improve board's transparency and accountability to ALL shareholders by evaluating all strategic options at arms length. Any strategic option should be considered in the context of ALL strategic options available in the market to maximize shareholder value. 4. Last but not the least, we would like our company to improve IR practices by start attending all major investor conferences, conducting earnings call, attracting wall street analyst coverage like its market peers. We strongly believe improving IR practices will positively impact valuation levels and the daily liquidity levels(Our company's liquidity level is 1/5th of Perrigo and 1/10th of Actavis) of Taro shares

We look forward to your response and a continued dialogue with you on this and other shareholder matters in the future.

Signatures
Name paul hollander Valerie Davis William Folsom Leonardo Mosca Martina brank Valery Libenzon Ofir Gil Robert Carroll Peggy Sendars Zachary Hardy Peter Butkus Sky Sunday joseph falkson Susan Falkson Michael Sher Pam Boland Tony Baker Michael Ahamad Mattis Ezren Christopher Copeland Location Jacksonville, FL, United States Wasaga beach, Canada Jacksonville, FL, United States Italy Ljubljana, Thornhill, Canada Ramat Hasharon, , Israel Tonawanda, NY, United States Brooklyn, NY, United States Macon, GA, United States Boston, MA, United States Lancaster, PA, United States centerville, MA, United States Centerville , MA, United States Austin, TX, United States Grovetown, GA, United States New York, NY, United States New Rochelle, NY, United States Brooklyn, NY, United States Decatur, GA, United States Date 2013-08-10 2013-08-10 2013-08-10 2013-08-10 2013-08-10 2013-08-11 2013-08-11 2013-08-11 2013-08-11 2013-08-11 2013-08-11 2013-08-11 2013-08-12 2013-08-12 2013-08-12 2013-08-14 2013-08-14 2013-08-16 2013-08-18 2013-08-21