Hyderabad-based Neuland Laboratories will commission a new commercial peptide manufacturing facility at its 17-acre Bonthapally campus by summer 2026, marking a strategic scale-up in its contract development and manufacturing (CDMO) offerings for complex peptides and GLP-1 programs. The first of four planned modules is scheduled to go live this year, adding commercial-scale capabilities to Neuland’s existing clinical-stage S-Block infrastructure and positioning the company to serve a tightening global peptide capacity market.
Module One has already secured firm customer commitments totalling around $ 30 million, underscoring demand from innovator and emerging biotech companies. Once operational, the unit will provide 6,370 litres of combined solid phase peptide synthesis (SPPS) and liquid phase peptide synthesis (LPPS) reactor capacity, including LPPS reactors ranging from 250 litres to 3,000 litres and SPPS reactors up to 500 litres. The facility has been designed to support execution from small-scale through to multi-ton commercial volumes, with flexibility to handle complex and long-chain peptide programs.
With GLP-1 manufacturing increasingly consuming a significant share of global peptide production, Neuland is targeting both innovator and emerging biotech pipelines that are struggling to secure clinical and commercial manufacturing slots across a broad range of indications. Vice chairman and managing director Saharsh Davuluri said the site has been intentionally planned for phased expansion. “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,” he noted.
The commercial peptide facility will be backed by a substantial ramp-up in people and infrastructure. R&D headcount is expected to grow at a double-digit rate this year, while the manufacturing team will more than double to support higher throughputs. The new peptide capacity will integrate with Neuland’s existing 1,174,000 litres of API manufacturing capacity across three US FDA–approved facilities, supported by a large, dedicated R&D centre located nearby. This combined setup is intended to enable seamless scale-up, fast tech transfer and efficient progression from development to commercial supply.
“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,” Davuluri said. He added that a key pillar of the company’s strategy will be to first support innovator and emerging biotech companies across novel peptide development, while also addressing sustained GLP-1 demand. Neuland expects commercial peptide production to become a major growth driver and plans to roll out all modules of the new facility in step with customer requirements.
The expansion comes on the back of strong regulatory and commercial traction for the CDMO. Multiple new drug applications have been filed on behalf of clients in recent years, with several more submissions expected over the next two years, reinforcing Neuland’s track record in supporting commercial supply. The company’s LPPS capabilities also provide secure supply of peptide building blocks, fragments, intermediates and hybrid constructs, which can help strengthen supply-chain resilience for complex peptide programs.
The upcoming plants will incorporate advanced digital operations, including DCS-based automation integrated with electronic batch manufacturing records, and scalable peptide technologies spanning synthesis, purification and drying. Downstream, the facility will house multi-column preparative HPLC systems, lyophilizers and dryers sized for commercial campaigns, as well as enhanced solvent-handling and tank-farm infrastructure, dedicated warehouses and upgraded waste-management systems for high-volume operations. These systems are intended to support data-rich process development, lower batch-to-batch variability and improve cycle times as Neuland moves deeper into the global peptide CDMO space.
