Neuland Laboratories is gearing up to enter the commercial-scale peptide manufacturing arena, announcing plans to open a major new facility this summer at its 17-acre Bonthapally manufacturing campus near Hyderabad.

 

The first of four planned modules at the new plant is expected to come online by summer 2026, expanding the company’s peptide capabilities from clinical-stage production to full commercial scale. Module One has already secured firm customer commitments worth about USD 30 million, underscoring strong early demand.

 

Once operational, the module will deliver 6,370 liters of reactor capacity for both solid-phase peptide synthesis (SPPS) and liquid-phase peptide synthesis (LPPS). The facility will support LPPS reactor sizes ranging from 250 L to 3,000 L, alongside SPPS reactors capable of operating at up to 500 L scale.

 

Construction began last year and is designed to support a wide range of manufacturing volumes—from small development batches to multi-ton commercial production—while providing flexibility for complex and long-chain peptide programs.

 

The expansion comes as global peptide manufacturing capacity tightens, driven in part by surging demand for GLP-1 therapies. Neuland is positioning the new facility to support innovator pharmaceutical companies and emerging biotech firms struggling to secure clinical and commercial manufacturing slots.

 

Saharsh Davuluri, Vice Chairman and MD at Neuland Labs, said: “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. This allows us to scale responsibly and in line with customer needs.”

 

To support the ramp-up, Neuland expects double-digit growth in R&D headcount this year, while the manufacturing workforce will more than double. The new facility will complement the company’s existing 1,174,000-liter API manufacturing capacity spread across three US FDA-approved plants, supported by a dedicated R&D center nearby. Together, the integrated network is designed to enable seamless scale-up, rapid technology transfer and faster development-to-commercial execution.

 

“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," added 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.”

 

The move follows several strong years for the contract development and manufacturing organization (CDMO), which has recently supported multiple NDA filings for customers, with more expected over the next two years—reinforcing its regulatory track record in commercial supply.

 

Beyond finished peptide drugs, Neuland’s LPPS capabilities will also provide secure production of peptide building blocks, fragments, intermediates and hybrid constructs, helping strengthen supply-chain resilience for complex peptide programs.

 

The new plants will feature advanced digital operations, including DCS-based automation integrated with electronic batch manufacturing records (eBMR). The facility also expands downstream processing with multi-column preparative HPLC systems, commercial-scale lyophilizers and dryers, along with upgraded solvent-handling infrastructure, tank farms, dedicated warehouses and enhanced waste-management systems.

 

The technology stack is designed to support data-rich process development, lower batch variability and faster manufacturing cycle times—key capabilities as demand for advanced peptide therapeutics accelerates globally.