Neuland Laboratories, a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), announced that it has opened a new manufacturing facility constructed as part of its collaboration with Tokyo-based API Corporation (APIC), a healthcare unit of Mitsubishi Chemical Holdings Group that produces APIs, intermediates and investigational new drugs, along with fine chemicals and reagents.

The new facility, which is located in a Neuland complex in Pashamylaram, Hyderabad, is the first manufacturing facility that APIC has established outside of Japan.

Pursuant to an agreement entered into in March, 2013, Neuland constructed and will operate these manufacturing facilities dedicated to providing APIC with capacity for meeting the needs of its customers for pharmaceutical APIs and intermediates.

''We are pleased to inaugurate these new state-of-the-art manufacturing facilities developed as part of our collaboration with APIC,'' said D.R. Rao, chairman and managing director of Neuland Labs. ''This arrangement allows APIC to expand their business in Japan in a timely and cost-effective way, while also helping to raise Neuland's profile as a quality supplier of APIs and intermediates to the Japanese market.''

Shares of the company gained Rs 8.95, or 3.52%, to trade at Rs 263. The total volume of shares traded was 62 at the BSE (10.47 a.m., Wednesday).