Caplin Steriles Ltd, a subsidiary of Chennai-based Caplin Point Laboratories Ltd, said its board has approved setting up of a wholly-owned subsidiary in the US.

In a regulatory filing, the company said the step-down subsidiary, Caplin Steriles USA Inc, will be based in Delaware, and is expected to have an initial share capital of $5,00,000.

Caplin Point Laboratories caters predominantly to the emerging markets of Latin America and Africa, while its wholly-owned subsidiary Caplin Steriles Ltd, caters to regulated markets such as the US and Europe, for injectable and ophthalmic products.

“The proposed step-down subsidiary would be the front-end entity for Caplin Steriles Ltd in the US for direct sales, marketing and distribution of products manufactured by Caplin Steriles Ltd,” the company added. 

The proposed company would be a wholly-owned subsidiary of Caplin Steriles Ltd, which is in turn a 99.99 per cent subsidiary of Caplin Point Laboratories.

Shares of Caplin Point jumped over 2 per cent in intraday trade to ₹932.75 on NSE.