Neuland Laboratories Surges 5% on USFDA Clearance for Hyderabad Unit

On March 22, 2024, the shares of Neuland Laboratories were trading with gains of more than 5% after the company announced in an exchange filing that their Hyderabad unit gets clearance from the United States Food and Drug Administration (USFDA).

Details of the US FDA Clearance

On Friday, the drug manufacturing company Neuland Laboratories Limited informed in a stock exchange filing that the United States Food and Drug Administration had inspected the company’s Unit 1 manufacturing unit at Bonthapally, Hyderabad, Telangana, in this month, i.e., from March 18, 2024 to March 22, 2024. They added that the food and drug regulator inspection was successfully completed with no observations.

The company stated, “We wish to inform you that the United States Food and Drug Administration (“US FDA”) has inspected our Unit 1 manufacturing facility at Bonthapally, Hyderabad, from 18th to 22nd of March 2024. The inspection at Unit 1 by the US FDA has been completed, with no observations under Form 483.”

Neuland Laboratories Limited’s manufacturing facility in Bonthapally is an API manufacturing unit with a total capacity of 233 KL. The facility also boasts a hydrogenation reaction volume of 7.4 KL and a solvent recovery system of 100 KL per day. The products manufactured at the Unit 1 facility are Cardiovascular, Antiasthmatics, Anticonvulsants, Antifungal, Central Nervous System (CNS), Antipsychotic, Fluoroquinolones, Anti-Parkinson and Antibacterial.

Apart from Unit 1 in Hyderabad, Neuland Laboratories Limited has 2 more manufacturing facilities, Unit-2 Pashamylaram Manufacturing Facility and Unit-3 Gaddapotharam Manufacturing Facility in Telangana.

Based on the December quarter shareholding pattern, the promoters and promoter group hold a stake of 32.80% in the company.

On March 22, 2024, the share price of Neuland Laboratories Limited opened at ₹6,080.00, touching the day’s high at ₹6,463.95, as of 3:18 PM on the NSE.

About Neuland Laboratories Limited

Neuland Laboratories Limited is a leading manufacturer of Active Pharmaceutical Ingredients (APIs) and offers end-to-end solutions for the chemical needs in the pharmaceutical industry. In the quarter ended December 2023, the company reported a revenue of ₹392.83 crore, which is approximately 45.87% higher than the ₹269.25 crore revenue in the quarter ended December 2022.

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