Caplin Point Laboratories plans to double revenue in the US market starting in the third quarter of this fiscal year.
The Chennai-based drugmaker plans to achieve this by launching new products and increasing the market share of existing products.
Caplin Point manufactures generic and branded pharmaceutical formulations and therapeutics. Its product portfolio includes tablets, capsules, injectables (liquid and lyophilized, prefilled syringes), softgels, oral liquids, ointments and creams.
The company mainly exports to Latin American (LATAM) and African markets. In 2017-18, it entered the heavily regulated US market through subsidiary Caplin Sterlies Ltd.
For Q1 FY24, Caplin Point reported a 21% year-on-year increase in consolidated net profit to Rs 1.04 crore on a 14% year-on-year increase in revenue to Rs 3.95 crore. Latin America and the rest of the world contributed 88% of the revenue, with the rest coming from the US market.
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Caplin Steriles, a manufacturer of injectables and ophthalmic products for the US market, had an operating income of Rs 46 crore in Q1 FY24.
“We will not proceed with the sale of Rs 450 crore. This will double from the third and fourth quarters,” CC Paarthipan, chairman of Caplin Point Laboratories, said on the company’s first-quarter earnings call.
Caplin Point has been taking a number of steps to expand its US operations.
Earlier this month, the company announced that it would establish a subsidiary, “Caplin Steriles USA Inc,” to directly sell, market and distribute products manufactured by Caplin Steriles Ltd.
The company plans to launch more than 15 private-label products in the US within the first 12 months of launch.
New product
On the production side, the company is working on the second and third expansions at Caplin Sterlies. Phase 2 (for manufacturing injection vials and prefilled syringes) is expected to be completed in Q3 FY24, while Phase 3 (for manufacturing lyophilized injection vials) is expected to be completed in Q4 FY24.
“We have a lot of orders from the US market. The second phase of production will start in October. The machines will be operational in the third and fourth quarters,” Pattypan said.
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Caplin Point currently has a total of 23 Abbreviated New Drug Application (ANDA) approvals, 18 of which are in the name of Caplin Sterlies and its business partners. The company also has seven ANDAs pending US FDA approval. The company said it will submit 10 ANDAs over the next 12 months, covering emulsion injections, suspension injections, emulsion ophthalmic drugs and injection bags.
