Caplin Point Laboratories Ltd Share Price – NSE  /  BSE

Pharmaceuticals, Small Cap

Caplin Steriles, a Subsidiary Company of Caplin Point Laboratories has been granted final approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Ofloxacin Ophthalmic Solution USP 0.3% (eye drops), a generic therapeutic equivalent version of (RLD), OCUFLOX Ophthalmic Solution of Allergan Inc.

Ofloxacin Ophthalmic Solution USP 0.3% is indicated for treatment of eye infections caused during the conditions of conjunctivitis and corneal ulcers. According to IQVIATM (IMS Health), Ofloxacin Ophthalmic Solution USP 0.3% had US sales of approximately $52 million for the 12-month period ending December 2023.

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The approved ANDA is a generic therapeutic equivalent version of reference listed drug (RLD), Ocuflox Ophthalmic Solution of Allergan Inc.

Ofloxacin Ophthalmic Solution (eye drops) is indicated for treatment of eye infections caused during the conditions of conjunctivitis and corneal ulcers.

According to IQVIA (IMS Health), Ofloxacin Ophthalmic Solution had US sales of approximately $52 million for the 12- month period ending December 2023.

Caplin Point Laboratories is a fast-growing pharmaceutical company with a unique business model catering predominantly to emerging markets of Latin America and Africa. The company has manufacturing facilities that cater to a complete range of finished dosage forms.

The company‘s consolidated net profit jumped 30.1% to Rs 119.82 crore on 17% increase in revenue from operations to Rs 435.50 crore in Q3 FY24 over Q3 FY23.

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The unit will focus on manufacturing a range of Oral Solid Dosage Oncology products, with the Injectable division to commence operations in the next few months. The company plans to expand the portfolio to over 50 oncology products progressively.

The facility will manufacture tablets (both coated & uncoated), capsules, and injections, catering to the growing demand for high-quality pharmaceuticals in the oncology segment. The total investment commitment for this facility is Rs 150 crore, funded entirely from internal accruals.

Initially, these oncology products will be targeted at Latin American countries, leveraging Caplin Group's established presence in these markets. In the medium term, Caplin One Labs aims to launch these oncology products in regulated markets such as the US, EU, Mexico, and others.

The facility's compliance with US FDA standards from the outset is expected to streamline the approval process, ensuring swift market entry and availability of these critical treatments to patients worldwide.

C.C. Paarthipan, Chairman said: “We are pleased to announce the commencement of operations at our Oncology facility located in Kakkalur. We are committed to delivering superior pharmaceutical products and increasing our market footprint. Caplin has started offering a comprehensive array of oncology solutions to address unmet medical needs, reflecting its dedication to healthcare innovation. Our focus on innovation and technology along with regulatory compliance, well positions us for the long-term success. Our vision is to continue investing judiciously in the oncology business which has significant social impact.”

Caplin Point Laboratories is a fast-growing pharmaceutical company with a unique business model catering predominantly to emerging markets of Latin America and Africa. The company has manufacturing facilities that cater to a complete range of finished dosage forms.

The company‘s consolidated net profit jumped 30.1% to Rs 119.82 crore on 17% increase in revenue from operations to Rs 435.50 crore in Q3 FY24 over Q3 FY23.

The scrip fell 0.64% to Rs 1248.50 on the BSE.

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Profit before tax jumped 30.1% YoY to Rs 145.1 crore in Q3 FY24.

EBITDA stood at Rs 159.46 crore in Q3 FY24, recording growth of 29.1% as compared with Rs 123.52 crore posted in corresponding quarter last year. EBITDA margin was 32.5% in Q3 FY24 over 32% in Q3 FY23.

Free Cash Flow stood at Rs 72 crore after capex investment of Rs 117 crore.

Under geographical revenues, 83% of revenue came from Lain America and Rest of the World and 17% of revenue came from United States.

As of 31st Dec 2023, inventories (including in-transit inventory) are at Rs 374 crore and cash and cash equivalents are at Rs 832 crore.

The company said that in view of risk mitigation against ongoing Red Sea route issues, converts all shipment terms to CIF basis going forward as against FOB in the past (to its own subsidiaries), to have better control on costs and transit times.

The company has allocated an overall capex budget of approximately Rs 600-650 crore for the investment projects, most of which are nearing completion. The intended capex aims to enhance existing production capacities, widen the product range, and achieve backward integration for a majority of the products. The capex will be financed solely through internal accruals, and it will remain net cash positive throughout the process.

C.C. Paarthipan, chairman said: “Consistency has always been a key area for our company and this Quarter is no different. The company delivered strong results, reporting revenue from operations of Rs 436 crore, resulting in a 17% year-onyear growth. Net Profit amounted to Rs 120 crore, reflecting a 23% year-on-year growth, with margins at 27%. Approval from Colombia’s INVIMA for our Caplin Steriles site will accelerate growth in newer markets like Mexico, Chile and Colombia, reinforcing our commitment to high regulatory standards and positioning us for success. We remain committed to driving sustainable growth with strong cashflows.”

Caplin Point Laboratories is a fast-growing pharmaceutical company with a unique business model catering predominantly to emerging markets of Latin America and Africa. The company has manufacturing facilities that cater to a complete range of finished dosage forms.

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