Caplin Point Laboratories Limited Q3 FY2024 Earnings Conference Call
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The current cash flows and profits are mainly from the smaller markets of Central America in addition to the U.S. now. We are entering into bigger geographies such as the U.S., Mexico, Chile, and others.
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Mexico is the second largest market in Latin America and Mexico’s advantage is its geographical proximity and cultural compatibility to both South and North America. We have already filed 24 products in Mexico and received the registration of five in the recent past. We are sure of increasing our filing to at least 60 to 70 before the end of 2024.
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We have been exporting quality products directly from China to Latin America, especially to the smaller markets. Now we are moving to the next level of business in the form of outsourcing from China companies for the regulated market. Here we are using our advantages and experience in catering to markets such as the U.S. which helps us to associate with bigger companies in China for our second innings in the larger markets of Latin America.
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We are also getting into the business of manufacturing double chamber PFS for the Central American markets shortly
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The machinery will be installed either in March or April and the registration may take six to nine months before we hit the market. Here the volume of business may not be high, but the profitability will be very good as there is only one competitor, that too is a multinational company.
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We will also be starting one more warehouse on the Guatemala border which is closer to Mexico and many of our customers feel that it is very difficult and expensive for them to come to the capital of Guatemala. This will also increase our profitability and cash flow in the coming years.
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We will continue to focus on the bottom of the pyramid and also the bottom of the business pyramid where the traffic for the competition is always lesser.
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We have Onco products under registration in Latin American markets where we are very confident of doing business in the initial stage itself, unlike Caplin Steriles.
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Our injectable and API for Onco facilities will also be completed in nine to 10 months from now. We are sure of doing profitable business in the future after the completion of our injectable division and registration.
Caplin Steriles business:
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We have around 14 products that are under active review with the FDA and we expect most of these to be approved within the next 12 months. Some of these are ophthalmic products which we have a line that is largely underutilized at the facility so we will be aiming at launching these products as close to the approval date as possible
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The rest of the products and the review are under active development and are a healthy combination of injectables and vials, ready-to-use injectable bags, injectable suspensions, emulsions, and also ophthalmic.
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We will also shortly be working on a pipeline of prefill syringe products as well so you can imagine that we are trying to cover a broad spectrum of products that are used in hospital and clinical settings.
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In the next eight months, we will have licenses to distribute our products on our label in all 50 states in the US.
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So overall we are making good progress on the US side and with prices stabilizing and also injectable shortages continuing, we feel that our razor sharp focus on digitalization and quality and supply continuity at Caplin Steriles will certainly augment the company’s progress in the years going forward.
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