Neuland Laboratories Limited - Transformation towards niche APIs?

GLP-1 agonists are a class of drugs used in the treatment of diabetes (superior sugar control) & weight loss management. These drugs have superior treatment outcomes & are now used as a first line drug in patients with diabetes having comorbidities such as atherosclerotic cardiovascular disease & chronic kidney disease.

As these drugs become generic & cheaper, these may replace metformin as the most preferred first line drug in the treatment of diabetes.

Indeed the opportunity size is huge for these molecules. One who develops the knack to manufacture the peptide molecules efficiently at scale may win significant market shares for this molecule. (Like Divi’s doing it for many small molecules). At the moment, Piramal & Neuland both are working on these molecules & haven’t filed DMFs. Let the numbers speak first.

Tirzepatide is the newer drug in these class of drugs and it is indeed a wonder drug. Link

That’s why I was interested in Tirzepatide in the peptide development list of Neuland. Turns out, they are not supplying to innovator now & developing it for generic use, once it becomes generic. (15-20 years time frame).


Even Elon Musk attributed his weight loss to Semaglutide drug. (Ozempic/Wegovy)

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Going forward, If GLP-1 is the preferred first line of treatment, and their prices crashing, will that be a serious challenge to metformin based drugs?

Transfer of Company’s property situated at Nanakramguda, Hyderabad, Telangana, admeasuring 1.75
lakh sq.ft. by way of perpetual lease to various parties, for an overall consideration of Rs. 117.96
Crores, subject to receipt of requisite approvals. The said transaction does not fall under the ambit
of related party transactions.

Company will recieve Rs 118 Cr which it can utilise for its CAPEX and R&D