Neuland Laboratories will open its new commercial peptide facility in the summer of 2026 at its 17-acre Bonthapally manufacturing campus, 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 secured firm commitments of approximately USD 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.
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.
Saharsh Davuluri, Vice Chairman and MD at Neuland Labs, added: “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.”
R&D headcount is also expected to grow at a double‑digit rate this year, 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 US FDA–approved facilities, which are supported by a large, dedicated R&D Centre located in close proximity. This integrated setup enables seamless scale‑up, rapid tech transfer, and highly efficient 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.”
This latest news follows on from an impressive few years for the CDMO, as multiple NDAs have been filed on behalf of customers recently, with several more filings expected over the next two years, reinforcing its strong regulatory track record in supporting commercial supply.
Additionally, Neuland’s LPPS capabilities provide secure supply of peptide building blocks, fragments, intermediates, and hybrid constructs—strengthening supply‑chain resilience for complex peptides.
The newly completed plants will feature advanced digital operation systems – controlled through DCS-based automation with eBMR integration – and scalable peptide technologies across synthesis, purification and drying. The facility includes expanded downstream capabilities: multi‑column prep‑HPLC systems, lyophilizers and dryers sized for commercial campaigns, enhanced solvent‑handling and tank‑farm infrastructure, dedicated warehouses, and upgraded waste‑management systems supporting high‑volume operations. The systems are designed to support data-rich process development, reduced batch variability and improved cycle times.
