Caplin Point rallies upon receiving USFDA approval for hypotension drug

Caplin Point Laboratory's stock traded higher by over 9 per cent on Friday after its subsidiary, Caplin Steriles Limited (CSL) was granted approval from USFDA for its Phenylephrine Hydrochloride injection which is indicated to treat hypotension.

The company had incorporated its subsidiary CSL in FY19. The drug approved is for the power ranging of 10 mg/mL single-dose vial, 50 mg/5 mL (10mg/mL) pharmacy bulk package, and 100 mg/10 mL (10 mg/mL) pharmacy bulk package, a generic therapeutic equivalent version of (RLD), VAZCULEP injection, of Avadel Legacy Pharmaceuticals LLC. According to US sales data, approximately US$ 45 million worth of revenue was recorded in FY19.

This is the third hydrochloride-based drug which has been granted regulatory approval. This development certainly reflects signs of sustenance of the company during the economic slowdown. However, the management also stated that some of its products are seeing a shortage or are planned for emergency usage. The demand-supply would fetch priority levels accordingly.

The intra-day gains on Friday helped the stock to close at its high price on year-to-date basis. It closed on Rs 375.85, up by 7 per cent on BSE.