Neuland Laboratories Starts First Peptide Manufacturing Module, Plans Further Capacity Expansion

Neuland Laboratories has started operations at the first module of its commercial peptide manufacturing site, bringing 7,000 litres of reactor capacity on stream as it works through a broader four-module expansion. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The Hyderabad-based company is also preparing for the next stage of the project. Foundational infrastructure for the second module is already in place, and work could begin earlier than originally planned once customer requirements are finalised. Its configuration, instrumentation and capacity are being worked out with the customer whose projects are expected to anchor the additional capability. 

First Module Brings 7,000 Litres of Reactor Capacity 

Neuland has invested $30 million in the first module, which combines 750 litres of solid-phase peptide synthesis (SPPS) capacity with 6,250 litres of liquid-phase peptide synthesis (LPPS) capacity. 

The facility has been designed to handle programmes ranging from smaller batches to multi-kilogram quantities of complete peptide APIs, including complex and long-chain peptides. It can also support commercial-scale production of crude peptides. 

SPPS and LPPS reactors are housed in separate suites, allowing both processes to operate in parallel. The module also includes three dynamic axial compression columns — one measuring 45 cm and two measuring 60 cm — along with two lyophilisers of 100-litre and 200-litre capacities. 

Module Two Could Scale Reactor Capacity to 18,000 Litres 

Neuland is linking investment in the subsequent modules to customer requirements rather than setting out a fixed expansion configuration in advance. 

As currently planned, the second module could provide overall reactor capacity of up to 18,000 litres. The proposed setup includes three 5,000-litre LPPS reactors, either a 1,000-litre or 2,000-litre SPPS reactor, and smaller reactors of up to 1,000 litres. 

The final configuration has not yet been fixed. Neuland said the details are being defined in collaboration with the customer connected with the planned expansion. 

Peptide Work Expands Beyond Obesity and Metabolic Disease 

The range of therapeutic areas represented in Neuland’s partner programmes is also widening. While obesity and metabolic disease remain part of the mix, oncology is emerging as an active area of early-stage development. 

The company is exploring further capacity options for the medium term as peptide pipelines expand and biotech companies look for outsourced development and commercial manufacturing capacity. 

Neuland said the first module is supported by a team of nearly 212 peptide specialists. 

CDMO Revenue Rose 116% in Most Recent Quarter 

The expansion comes after Neuland’s CDMO revenue increased 116% in its most recent quarterly results. According to the company’s release, the increase was driven mainly by higher commercial contracts as well as a growing number of clinical projects. 

The company is approaching the peptide build-out with a longer horizon in mind, with its expansion plans intended to address customer requirements over the coming years rather than only near-term capacity needs. 

Neuland operates three US FDA and EU GMP-compliant facilities in India with combined reactor capacity of approximately 1,218 kL. The company serves customers in more than 80 countries and has filed over 1,000 drug master files globally. It also offers more than 100 APIs across different therapeutic areas. 

Neuland Laboratories is listed on the National Stock Exchange under the symbol NEULANDLAB and on BSE under scrip code 524558.