For formulation makers, APIs represent lower margin business many a times. (Occasionally there might be higher margin niche APIs).
Plus for a company focussing on formulations the effort to put up and run an api plant may not be worth the effort.
And putting up an API plant where the quantity of the stuff required for captive consumption is quite low may not make economic sense.
e.g for abilify, torrent used to source its API from someone else . (I think hetero).
whereas alembic is nearly vertically integrated for abilify.
So at the end of the day it depends on how strategically important it is for the company to manufacture its required APIs.
Coming to Neuland I had a look at the company and it does hold promise but how it delivers needs to be seen. Management has indicated some possibilities which can turn out to be interesting. But personally I would still prefer to keep it in my watchlist only.
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