Caplin Point Laboratories

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Caplin had another great year, with 16% sales and 21% EPS growth. Concall notes below

FY24Q4

  • INVIMA successfully audited CP-1 facility at Pondicherry for soft gel capsules. This will cater to Mexico, Chile, and other major geographies of Latin America

  • Caplin Sterile

    • Does very little CMO and efforts into building own ANDA pipeline is finally paying off (313 cr. sales; 61.2 EBITDA, PAT 18.7 cr.)

    • Increased volumes from 16 mn vials in FY23 to 27 mn vials in FY24

    • Started discussions with other CMOs for outsourcing manufacturing of high volume products while keeping high-value low-volume products in-house

    • Out of 3 ophthalmic approvals, launched 1 and will launch 2 more soon

    • Launching their first ready-to-use bag injectable product in the U.S.

  • Capex

    • Line 6 for prefilled syringe and cartridge is being qualified and will be used to manufacture new peptide injectable products for global markets

    • 50-55% of capex is completed, CWIP is 116.6 crores. Pending investments are in the new OSD facility, API, and major equipment for injectables**. 250-300 cr. remaining** and will be finished in next couple of years

  • LATAM contribution: Guatemala > Nicaragua > El Salvador > Honduras > Dominican Republic > Ecuador

  • Completed registration of 85 products in Chile, opening a new warehouse in Chile

  • Received 6 marketing authorizations in Mexico, filed 23 products, 12 products are from Chinese companies. Once they register 25-30 products, they will start own warehouse and get into the private market in 2-years

  • Looking to get into insulin, biosimilars and peptides by sourcing it from Chinese vendors and doing fill-and-finish in India. Targeting regulated markets of Mexico, Brazil, South Africa which require Phase III studies. Do not plan to go into USA for selling biologicals

  • Automated QC and microbiology side, have taken a software partner for automating all their manual logbooks to electronic logbooks in next few months

  • Increase in working capital: always believe in keeping inventory closer to the end market

Disclosure: Invested (position size here, no transactions in last-30 days)

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