Sinolink Securities has released a research report stating that oral cyclic peptides represent the most definitive forward-looking strategic direction in the peptide field following GLP-1, recommending a focus on leading companies with core platform technologies and clinical pipelines in this area.
For overseas markets, the report suggests watching Protagonist Therapeutics (PTGX). As a global leader in oral cyclic peptides, the company has two late-stage assets: ICOTYDE, which is entering commercial scaling, and Rusfertide, which is in the regulatory approval stage.
Domestically, the report highlights HANSOH PHARMA (03692). Its HS-20118 is the first domestic IL-23R-targeting oral cyclic peptide to enter the late clinical stage, with a global Phase II trial underway, positioning it for a first-mover advantage in China's oral cyclic peptide sector.
Key Points from the Report
The year 2026 marks a pivotal transition for the oral cyclic peptide field, moving from a "scientific concept" to an "industrial reality," with their drugability conclusively validated.
JNJ-2113 (Icotrokinra, brand name ICOTYDE) received FDA approval in March 2026, becoming the world's first IL-23-targeting oral cyclic peptide. Merck's MK-0616 (Enlicitide), the first PCSK9-targeting oral cyclic peptide, demonstrated in its CORALreef Phase III series that a once-daily 20mg oral dose could reduce LDL-C by 59.7%, efficacy approaching that of injectable monoclonal antibodies, with an NDA expected to be submitted in 2026.
These successes, in the major chronic disease areas of autoimmunity and metabolism, systematically validate the dual advantages of oral cyclic peptides: combining the convenience of small-molecule oral administration with antibody-level targeting activity. This marks a key leap for peptide drugs from "injectable only" to "orally available," formally establishing a new drug paradigm.
Expansive Growth Potential
While the market often views oral cyclic peptides as "oral replacements" for injectable antibodies, their value extends far beyond mere substitution of existing treatments.
On one hand, for chronic conditions requiring lifelong medication like psoriasis, ulcerative colitis, and hyperlipidemia, oral formulations offer an irreplaceable adherence advantage over subcutaneous injections, significantly lowering the treatment barrier. This could unlock a patient pool of approximately 50%–70% who meet the criteria for advanced therapy but are not currently receiving it.
On the other hand, the molecular weight of cyclic peptides perfectly fills the structural gap between small molecules (less than 500 Da) and antibodies (greater than 5000 Da). This allows them not only to cover the broad, flat interfaces of protein-protein interactions (PPI) with high affinity but also holds promise for penetrating cell membranes to target previously "undruggable" intracellular targets like KRAS.
Rusfertide, the first hepcidin mimetic (a first-in-class molecule), has received FDA priority review, and Chugai Pharmaceutical's AUBE00 (a pan-KRAS inhibitor) has entered Phase I trials, indicating that oral cyclic peptides are creating new therapeutic spaces inaccessible to both small molecules and antibodies.
Pipeline and Business Development Momentum
The global cyclic peptide R&D pipeline is undergoing systematic expansion. The cumulative number of projects under research has grown from 72 in 2021 to 93 year-to-date in 2026, with 11 new projects added in 2026 alone—the highest in nearly five years. For the first time, the pipeline spans the entire spectrum from clinical application to marketing approval, signaling that the technology platform has matured to a stage of full-spectrum advancement.
Industry capital is validating the platform's value with substantial investment: the total value of global cyclic peptide business development (BD) transactions reached a record $6.17 billion year-to-date in 2026.
Protagonist Therapeutics, as the company with the fastest clinical progress in oral cyclic peptides, has established a dual late-stage asset portfolio with "one approved (ICOTYDE) + one under NDA review (Rusfertide, PDUFA date set for Q3 2026)," positioning it for a dense schedule of catalysts over the next 18 months.
Domestically, HANSOH PHARMA's HS-20118, as the first domestic IL-23R oral cyclic peptide to enter late-stage clinical trials, has already demonstrated comparable early efficacy and excellent safety.
The report believes that over the next 3–5 years, the oral cyclic peptide field will enter a sustained cycle of commercial realization. Companies that master core cyclization modification technologies and delivery platforms are poised to reap significant rewards.
The report also notes risks including clinical trial progress falling short of expectations, new drug development results not meeting targets, and market promotion and sales underperforming.
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