FIIs Favourite: Caplin Steriles Secures US FDA Approval, FIIs Stake Rises to 4.86 per cent
Caplin Point Laboratories has demonstrated robust financial performance in recent quarters. The company reported revenue of Rs 1,523 crore for Q3 FY25, which is equivalent to its full-year revenue in FY23.
Caplin Point Laboratories has made headlines once again as its subsidiary, Caplin Steriles, secured the final approval from the United States Food and Drug Administration (US FDA) for its Abbreviated New Drug Application (ANDA) concerning Brimonidine Tartrate and Timolol Maleate Ophthalmic Solution. Despite this positive development, shares of Caplin Point Laboratories were trading 2.42 per cent lower at 2:50 PM on February 27, 2025.
Brimonidine Tartrate and Timolol Maleate Ophthalmic Solution is a widely used ophthalmic medication that helps lower intraocular pressure in patients suffering from glaucoma or ocular hypertension. The drug is a generic therapeutic equivalent of AbbVie Inc.'s reference product, COMBIGAN. According to estimates from IQVIATM, this medication generated approximately USD 242 million in sales in the United States during the 12 months ending December 2024. The approval marks a crucial milestone for Caplin Steriles, allowing the company to further strengthen its presence in the regulated markets.
Caplin Point Laboratories has demonstrated robust financial performance in recent quarters. The company reported revenue of Rs 1,523 crore for Q3 FY25, which is equivalent to its full-year revenue in FY23. Additionally, the Profit Before Tax (PBT) for FY24-25 has already exceeded Rs 500 crore, compared to Rs 451 crore recorded in FY22-23. The company's Profit After Tax (PAT) has also increased to Rs 396 crore, up from Rs 377 crore in the previous fiscal year. Caplin Point’s gross margin for the latest quarter stands at an impressive 60.4 per cent, with EBITDA margins at 36.9 per cent and PAT margins at 26.7 per cent. Notably, operating expenses have remained controlled at 25 per cent to 26 per cent of revenue, even as the company doubled its employee strength over the last four years.
On the strategic front, Caplin Point Laboratories continues to expand its footprint in Latin America, targeting Mexico and Chile in the short term while planning to enter Colombia and Brazil in the mid-to-long term. The company has also initiated front-end operations in the U.S. market, following the model of successful injectable companies that have established a direct presence in the region. In addition, Caplin Point has identified two manufacturing facilities in Mexico to support the production of oral solids, ointments, and suppositories for contract manufacturing opportunities. The company also aims to develop 80-85 Active Pharmaceutical Ingredients (APIs) for captive consumption, with excess production capacity being utilized in China.
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Caplin Point Laboratories is a fast-growing pharmaceutical company with a unique business model focused on emerging markets in Latin America and Africa. The company operates state-of-the-art manufacturing facilities that cater to a wide range of finished dosage forms. With a market capitalisation of over Rs 14,639 crore, Caplin Point has been a preferred choice for institutional investors. The stock, however, has witnessed a 23 per cent correction on a year-to-date basis in 2025. According to the December 2024 shareholding pattern, Foreign Institutional Investors (FIIs) have increased their stake in the company to 4.86 per cent, indicating strong confidence in its future prospects.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.