Neuland entering HPAPI & peptide markets

30-Aug-2009 - Last updated on 31-Aug-2009 at 09:32 GMT

Neuland Laboratories is building a facility to produce HPAPIs, which it predicts will contribute 20 per cent of its bottom line over the next two to three years, and has begun commercial peptide manufacture.

The company has identified high potent active pharmaceutical ingredients (HPAPI) and peptides as high growth areas that it can apply its existing expertise to. Entry into these markets is part of Neuland’s focus on opportunities that require higher barriers to entry.

Included in the shift is the addition of contract research and manufacturing services (CRAMS) and a joint venture with Cato Research to conduct clinical trials. Lonza performed a similar shift away from basic chemicals to protect itself from low cost competitors in emerging markets.

The peptide segment of Neuland’s revised operations is now operational and has begun commercial production of Fmoc pseudoproline dipeptides and other building blocks in India and its US subsidiary.

Initially Neuland is focusing in selling these in the US and Europe, with developing markets being added in the next phase of the company’s plan. Neuland believes it can succeed in the peptide market by offering superior quality products at attractive prices.

The market for peptides is predicted to grow as more drugs using them reach market. Demand for HPAPIs could follow a similar pattern and Neuland believes it has the resources and expertise to capture a proportion of both markets.

Neuland’s HPAPI plans are less advanced, with the construction of a new facility recently commissioned, but anticipates the sector contributing to its business in the next few years.

To support this Neuland has adjusted its R&D operations to put increased focus on HPAPIs. Furthermore, the company has initiated work into vitamin-D analogs and oncology nucleosides.