A research report from Guotai Haitong indicates that the core value of peptides lies in their ability to effectively target "undruggable" targets, such as PPI protein interactions, while significantly reducing the risk of immunogenicity. The global peptide CDMO sector is entering a capacity expansion cycle to meet the market demand for peptide drugs. GLP-1 agonists are rapidly expanding the peptide market, with pipeline indications broadening into multiple therapeutic areas. The size of the peptide CDMO industry is scaling in line with sales growth. Both domestic and international peptide CDMO companies are increasing their investments in capacity construction, with a particular focus on building end-to-end service capabilities from preclinical to commercial production.
Key Insights from Guotai Haitong
Peptide Drugs: The "Golden Mean" Between Small Molecules and Biologics
By arranging sequences of 10 to 50 amino acids, peptides lock their molecular weight into the 1-5 kDa range, precisely filling the therapeutic gap between small molecule drugs, which are under 500 Da, and large molecule proteins, which are over 5000 Da. This medium-scale molecular weight retains the strong tissue permeability of small molecule drugs, allowing them to penetrate deep into cells, while also possessing the high specificity and low toxicity of large molecule biologics. For research and development, the core value of peptides is their ability to effectively target "undruggable" targets, such as PPI protein interactions, and their significantly reduced immunogenicity risk.
GLP-1 Drives Rapid Market Expansion, Pipeline Indications Broaden Across Multiple Fields
1) Breakthroughs in peptide druggability, combined with growing market demand in chronic disease areas like weight loss and blood sugar control, have led GLP-1 agonists to drive a continuous expansion of the peptide drug market size. The global peptide therapy market exceeded $130 billion in 2024-2025 and is moving towards hundreds of billions of dollars at a compound annual growth rate of approximately 10%. 2) Multiple indications and diverse technological routes for peptides are advancing simultaneously. According to statistics from PolyPeptide, there are 572 peptide pipeline candidates globally, with the highest proportion of indications being metabolism (22%), oncology (18%), and neurology (12%).
Peptide CDMO Industry Size Scales with Sales Growth
From 2018 to 2023, the market size of China's peptide CDMO sector grew from RMB 1 billion to RMB 3.6 billion at a compound annual growth rate of 28.2%. The projected compound annual growth rates for the periods 2023-2028 and 2028-2033 are 30.0% and 21.5%, respectively. The market size for peptide CDMOs is expected to reach RMB 13.4 billion in 2028 and RMB 35.6 billion in 2033.
Global Peptide CDMOs Enter Capacity Expansion Cycle to Meet Market Demand
Both domestic and international peptide CDMO companies are intensifying their investments in capacity construction, with a strong emphasis on building one-stop service capabilities from preclinical to commercial production.
1) International CDMO Companies: In July 2024, CordenPharma announced a €900 million investment in capacity in the US and Europe, increasing this to €1 billion by 2025. Bachem is expanding in both Switzerland and the US, with its core expansion project, Building K, successfully passing cGMP audits and producing its first GMP batches in 2025, entering the first phase of capacity ramp-up in 2026. PolyPeptide is simultaneously expanding capacity in Europe, the US, and India, with capital expenditure expected to reach 15-20% of revenue in 2026. 2) Domestic CDMO Companies: WuXi AppTec has three TIDES plants under construction, all planned for commissioning in 2027. Two plants in Taixing are for oligonucleotide, peptide, and PMO production, while a Singapore plant will enhance the company's global API production capabilities for small molecules and TIDES. In April 2026, Asymchem Laboratories signed a memorandum of cooperation with the Tianjin Economic-Technological Development Area Management Committee to continuously expand its chemical macromolecule innovative drug CDMO R&D and production base in the Tianjin Economic-Technological Development Area, with an expected total investment of RMB 2 billion.
Companies to Watch
WuXi AppTec, Asymchem Laboratories, SunRNA Biotech, and Aurora Pharmaceutical.
Risk Warnings
Risks include R&D progress falling short of expectations, the peptide market size not meeting projections, lower-than-expected investment and financing in the biomedical sector, changes in regulatory requirements, and geopolitical risks.
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