Taro Pharmaceutical Industries, Ltd. engages in the development, manufacture, and marketing of prescription and over-the-counter pharmaceutical products, as well as active pharmaceutical ingredients primarily in the United States, Canada, and Israel.

Its primary areas of focus include topical creams and ointments, liquids, capsules, and tablets mainly in the dermatological, cardiovascular, and central nervous system therapeutic categories.

In North America, the company sells and distributes its products principally to drug industry wholesalers, drug store chains, and mass merchandisers. In Israel, it sells and distributes its products principally to healthcare institutions and private pharmacies. Taro Pharmaceutical Industries markets its products through its sales force in the United States, Israel, and Canada, as well as through its agents and distributors in approximately 20 countries.

May 18th, 2007, Taro Pharmaceutical Industries and Sun Pharmaceutical Industries Ltd announced that they entered into a definitive merger agreement providing for the acquisition of Taro by Sun for $7.75 per share in cash, a premium of 27% over the closing price of $6.10 per share on May 18, 2007, representing a transaction with total equity value of approximately $230 million. Sun would also refinance approximately $224 million in net debt of Taro. The total enterprise value of the transaction was approximately $454 million. Taro and Sun also announced that they entered into a separate definitive agreement for Sun to provide immediately $45 million of interim equity financing to Taro by acquiring 7.5 million of the Company's ordinary shares.

May 28th, 2008, Taro Pharmaceutical Industries announced that its Board of Directors unanimously voted to terminate the May 18th, 2007 merger agreement between the Company and Aditya Acquisition Company Ltd., a subsidiary of Sun Pharmaceutical Industries Ltd. The Merger Agreement provided for the acquisition of Taro by Sun for $7.75 per share and allowed either party to terminate after December 31st, 2007.