CDMO Neuland Labs Expects Commercial Production Facility to Be Operational by Summer

Officials at CDMO Neuland Laboratories say the company will open its new commercial peptide facility in the summer at its 17-acre Bonthapally manufacturing campus in India, with further capacity expansions planned as client demand increases. The first of four planned modules is expected to be operational by the summer of this year, adding commercial-scale capabilities to Neuland’s existing clinical stage S-Block facilities.

Module one has reportedly secured firm commitments of approximately $30 million. Once open, Module One will provide 6,370 L of SPPS [solid phase peptide synthesis] and LPPS [liquid phase peptide synthesis] reactor capacity for sizes of 250 L to 3000 L in LPPS, as well as SPPS reactors up to the 500 L scale, according to a company spokesperson, who adds that construction of the facility began last year and will enable client execution from small‑scale to multi‑ton commercial volumes, while also providing the flexibility needed for complex and long‑chain peptide programs.

With GLP-1 manufacturing consuming a growing share of global peptide capacity, Neuland is targeting innovator and emerging biotech programs facing tightening access to clinical and commercial manufacturing across a broad range of indications.

The site has been designed for ongoing expansion, with space to accommodate additional SPPS synthesizers of 2kL and multiple 5kL [LPPS] reactors as future modules come online,” says Saharsh Davuluri, vice chairman and managing director. “This allows us to scale responsibly and in line with customer needs.”

R&D headcount is also expected to grow at a double‑digit rate this year, notes a company official, and the manufacturing team will more than double to support the ramp‑up. This complements Neuland’s existing 1,174,000 L of API manufacturing capacity across three U.S. FDA–approved facilities, which are supported by a large, dedicated R&D Center located in close proximity. This integrated setup enables seamless scale‑up, rapid tech transfer, and highly efficient development-to-commercial execution, points out Davuluri.

“Building on the strength of our reputation among innovator and biotech customers for complex API capabilities, this new facility marks our strategic entry into commercial-scale peptide manufacturing,” explains Davuluri. “A key part of our strategy will be to first support innovator and emerging biotech companies across all areas of novel peptide development, as well as the ongoing demand for GLP-1 manufacturing. We see commercial peptide production as a key growth driver for the business over the coming years. So, we are now scaling rapidly and expect to rollout all modules of the new peptide facility in line with customer demand.”