China Galaxy Securities has released a research report stating that the domestic oligonucleotide industry chain is in its early stages, offering significant potential for import substitution, with CXO (Contract X Organization) services aiding the sector's accelerated development. The oligonucleotide drug industry chain encompasses upstream production of nucleotide monomers and reagents, midstream new drug R&D and pharmaceutical manufacturing, and downstream product commercialization. Key areas such as raw materials, production processes, technology patents, and equipment still exhibit high import dependency, indicating substantial room for domestic alternatives. Midstream CDMO enterprises provide outsourced R&D services for oligonucleotide drugs, facilitating the rapid growth of the domestic oligonucleotide drug industry.
Key viewpoints from China Galaxy Securities are as follows:
The inclusion of the oligonucleotide drug Inclisiran among blockbuster drugs highlights the high-growth nature of this sector. According to Novartis's 2025 financial report, Leqvio (Inclisiran sodium injection), the world's first ultra-long-acting siRNA lipid-lowering drug, achieved annual sales of $1.198 billion, a 57% year-on-year increase, securing its place as a blockbuster drug. Furthermore, since the beginning of 2026, the oligonucleotide drug field has seen frequent catalysts, including new drug approvals, capital inflows, technological breakthroughs, and merger and acquisition activities, demonstrating strong momentum.
Oligonucleotide drug R&D has entered a period of explosive growth, with the chronic disease market offering vast potential. The global competitive landscape for oligonucleotide drugs is highly concentrated, with three major players—Alnylam, Ionis, and Sarepta—holding 95% of the global market share. Companies like Arrowhead and Wave Life Sciences are accelerating their efforts to catch up. As of February 2026, 23 oligonucleotide drugs (including discontinued ones) have been approved globally, comprising 13 ASO drugs, 8 siRNA drugs, and 2 aptamer drugs, targeting indications such as FCS, spinal muscular atrophy, and hypercholesterolemia. The global R&D pipeline is experiencing explosive growth, with over a hundred oligonucleotide drugs in development. Cardiovascular and metabolic chronic diseases are the primary R&D focus, while the share of R&D in CNS and kidney disease areas is also rising rapidly.
Domestically, leading oligonucleotide biotech firms, represented by Ribobio, Bowang Pharmaceutical, and Shengen Biotech, are emerging. These companies are not only advancing their R&D pipelines rapidly but have also secured significant BD (Business Development) transactions with multinational corporations. Established pharmaceutical companies are also making strategic moves, with entities like Innovent Biologics and Salubris undertaking related initiatives.
Risk warnings include: 1. Increased macroeconomic pressures leading to insufficient healthcare consumption; 2. Lower-than-expected reimbursement for innovative drugs; 3. Global order shifts due to geopolitical factors; 4. Volume-based procurement or fee reductions exceeding market expectations.
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