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Neuland Laboratories Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Neuland Laboratories is a Hyderabad-based global organization focused on producing and developing active pharmaceutical ingredients (APIs). With over 100 APIs covering 10 therapeutic areas, they serve 500+ customers across 80+ countries. Their offerings include custom pharmaceutical development, including peptide synthesis. They prioritize sustainability and have sustainability with offices in the US, Europe, and Japan.

  • The company is a dedicated 100% API provider with our regulatory compliant services focussed on the singular objective of meeting the API requirements of generic and innovator pharmaceutical companies.

  • This year, 51% revenues came from North America and 33% from Europe.

  • Demonstrated strong performance in the CMS business

  • The company has participated in over 75 live projects, showcasing their diverse portfolio and increased involvement in pharmaceutical development.

  • Maintained their leadership position in key molecules, underscoring their continued expertise and significance in producing these molecules.

  • Achieved a revenue milestone exceeding 1,000 crores, highlighting their financial growth and stability.

  • Strategically shifted focus to encompass complex molecules, including specialty APIs, NCEs, and peptides, while continuing to serve both generic and innovative pharmaceutical companies.

  • As we look ahead, we're confident that Neuland is poised for significant growth. This year, our growth was marked by a 10% increase in GDS revenues and an impressive 57% rise in CMS revenues, reinforcing our optimism for the future.

  • Neuland's FY 2023 success is the culmination of strategic initiatives, emphasizing specialty APIs and innovative biotech products. Successful long-term project commercialization further fuelled growth

  • Neuland's sustainable success hinges on diverse molecules and customer loyalty. Transitioning molecules to CMS commercialization aims for recurring revenues, with a non-linear growth perspective.

  • Last year's success involved shifting to higher-margin products, while this year's agility enabled rapid response to increased demand through flexible capacities and modernization.

  • “Uncertainty surrounding China has also influenced the industry. People are unsure about the situation and are seeking more predictable alternatives. India, despite its own challenges, has been seen as a more stable option. Furthermore, the trust quotient has shifted for American companies. They see India as a new home and are steadily showing greater confidence in the country's capabilities. Interestingly, Europe is emerging as a strong player in the API space. While some may have predicted the dominance of China and India, the reality is different. European companies are competing fiercely, and from an Indian perspective, Europe poses stiff competition.”

  • Key Drivers of Neuland’s performance in FY 2024:

1. In the upcoming year, the company's performance will be driven by the commercial success of recent and upcoming molecules on the contract manufacturing side.

2. Market penetration for specialty molecules, recovering market share for certain products, and the steady growth of Unit III operations are key factors.

3. Successful technology transfer, investments in R&D infrastructure and production, along with the ability to navigate challenges, are critical. Additionally, focusing on quality, efficiency, and customer demands will contribute to growth and success

  • Specialty APIs like Apixaban, Paliperidone, Ezetimibe, and Donepezil drove growth and improved margins in the GDS business. In the Prime segment, key molecules Mirtazapine, Ciprofloxacin, and Labetalol were essential for the mature and competitive API focus.

  • The CMS business has seen substantial growth through NCE API projects for biotech firms. Revenues have surged from recently commercialized and upcoming molecules, validating the focus on Phase-II/III advancing molecules. This strategy boosts revenue potential, predictability, and partner interest.

  • Looking ahead, the company is well-positioned to maintain its momentum into the new fiscal year and beyond.

  • Our efforts include modernising and expanding our facilities, which is also helping us create buffer capacity for catering to increased volumes.

  • Despite anticipating non-linear growth, challenges in the industry could lead to fluctuations even on an annual basis. Initiatives include facility modernization, capacity creation, and a shift to project-oriented operations for sustained leadership.

  • The focus remains on growth in both generic APIs and CDMO while upholding high-quality standards for enduring customer partnerships.



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