Caplin Steriles Limited (Caplin), a Subsidiary Company of Caplin Point Laboratories Limited has been granted final approval from the USFDA for its ANDA Ketorolac tromethamine Ophthalmic Solution 0.5% (eye drops), a generic therapeutic equivalent version of (RLD), ACULAR Ophthalmic Solution of Allergan Inc.
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Adding on Guatemala Point:
Two points, they were covered on concall: A) Sending Goods from FOB to CIF B) Strategic advantage of Guatemala.
A) & B) being a corporate group we are able to optimize the freight cost and as we are able to pool the goods and our container formatting will happen faster than earlier right and then availability of ship also will be faster and then we will be able to reach the goods earlier to the port. As we have mentioned in the past, we have a warehouse in Guatemala. The other countries can be serviced from there. Once the goods reach to Guatemala some of the countries it goes by road. One country it will go by ship. The El Salvador and for other countries it can go by maximum of two to three days. When we are able to pool the goods for Guatemala, we are able to get earlier consignment, earlier ships availability and then also freight advantage.
What is checking on each quarter and yearly basis?
we are comfortable giving out is that our gross margins are always between 55% to 57% and our EBITDA and PAT and everything have been very similar 35% to 36% and then PAT has always been hovering around the 25%. We are today a global company right in whatever small size we are still; we are still a global company.
So, all our calculation, with this numbers. Keep in our mind and reach to the numbers!!!
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Add one another point, which one interesting on commentary
We have around
Rs.800 Crores. Even if you spend Rs.300 Crores to Rs.400 Crores to Rs.500 Crores in the next two years we will have Rs. 1,000 Crores. That is the time you will think of acquisitionof brands, acquisition of companies for domestic business and in addition to that we always look for something unique in the form of acquisition of distribution companies which will make us understand where we will have to sell our generics because generic is a business there is nothing in the form of marketing. Generic business is based on supply and demand.
You only need to understand how many products we have, what is the cost at which we will be able to supply and the quality wise once it is approved by USFDA everybody thinks quality will not be an issue. It is true also. So what is important is the distribution channels and the places where this can be reached by avoiding the intermediaries. Then coming back to one more thing in the form of LATAM, I am sure in five to six years from now we will be the number one company.
Open Eye for such kind of events / steps of the company !!!
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Caplin Steriles Ltd has received final approval from the United States Food and Drug Administration (USFDA) for an eye infection treatment drug. The approval received is for Ofloxacin Ophthalmic Solution, used in treating eye infection.
In the Q3FY24 meet the management had said that the H2FY24 will be better compared to H1FY24 due to commissioning of new plant/lines and also expected approvals of pending ANDAs also the holdings of institutions are steadily going up from last 4-5 quarters.
Disc : Not SEBI Registered. Not a buy/sell advice
Invested so can be biased
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What would be a good comparison to make to this company? In terms of product profile and the mode of business that they are operating in?
Are they a Generics manufacturer? Are they comparable to Natco?
Any 101 on this would be great for me to start looking at this a little deeply
What got my attention is them almost doubling their Fixed Asset Base and at the same time having about 800 cr. + cash on books
There is no close peer as it followed blue Ocean Strategy targeting markets in LATAM and Africa,where no other players dared to enter giving them an edge in margins. Only recently they have started in US with injectibles.
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Natco manufactures and markets complex products for niche areas which is a strong entry barrier for other players. Where Caplin Point manufactures all kinds of regular products.
So there is no comparison between Natco and Caplin. They both have their own products and strategies.
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Thanks - 100% of their business is export sales?
Thanks Mohit - and how would you categorise Caplin in terms of dependency on a particular therapy?
yes no sales in India as far as i know and nothing has been planned
not dependent on any one therapy quite diversified
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Pharma Export Formulations : 76%
Domestic Formulations : 13%
API: 6%
Agchem : 2%
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Caplin Point has received Colombia’s INVIMA approval for its Softgel Capsules division at
Puducherry.
Disc: invested
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