Neuland opens API plant as part of its partnership with Mitsubishi

Mitsubishi last year invested in India's Neuland Laboratories, which in turn was to build new plants that would produce active pharmaceutical ingredients (APIs) for the Japanese company. The first of those plants is now online.

The companies said Tuesday that the new facility is located in a Neuland complex in Pashamylaram, Hyderabad, and is the first outside of Japan for Mitsubishi's healthcare subsidiary, API Corporation (APIC).

Last year APIC said it needed more API capacity and liked Neuland's "business model," which is focused solely on APIs and intermediates. Neuland came to the table with two FDA-approved plants and about 1,000 employees. It does contract manufacturing as well as making generic APIs and complex intermediates.

The Japanese conglomerate has been building its pharma operations in a number of areas. In late 2012 it agreed to buy capsulemaker Qualicaps from private equity investor Carlyle Group ($CG) for $650 million. That was also rolled into its APIC unit. Then in July 2013, Mitsubishi Tanabe, another of its operations, agreed to pay $172 million to raise its stake in Canada-based vaccine developer Medicago to 60% from 6%.

- here's the announcement