China poised to drive expansion in peptide industry, capitalizing on GLP-1 advancements

In the complex and interconnected world of peptide drugs, companies looking to enter the field face significant challenges. However, Chinese CDMOs (Contract Development and Manufacturing Organizations) are making a name for themselves, as evidenced by the recent partnership between Asymchem and Innovent Biologic for the development of GLP-1 dual-target product mazdutide.

Asymchem, a domestic CXO leader, has been chosen as the CDMO partner for Innovent's groundbreaking product. Despite the lack of explicit naming in available search results, this partnership underscores the growing influence of Chinese CDMOs in the global market.

Meanwhile, the patent for liraglutide, a popular GLP-1 drug under Novo Nordisk, is set to expire this year. This has paved the way for generic drug giants like Teva, Mylan, and Sandoz to launch liraglutide generic drugs. The proliferation of generic peptide drugs, including those developed domestically in China, may serve as the most direct market catalyst in the short term.

Chinese companies like A-share peptide CDMO Shengnuo Biotechnology and Hybio Pharmaceutical have already made their mark, exporting APIs for drugs like liraglutide to international markets. Hybio Pharmaceutical, in particular, has announced multiple times since last September that it received orders for GLP-1 APIs from overseas, with disclosed amounts reaching between RMB 556-568 million (USD 76.5-78.1 million).

The growing influence of Chinese CDMOs is also reflected in the number of DMF filings for peptide-related APIs with the US Food and Drug Administration (FDA). Chinese companies have filed more DMFs than their US and European counterparts, demonstrating their increasing presence in the global market.

One such Chinese company is Sinopep, which has reached a CDMO cooperation agreement for GLP-1 with an unnamed Chinese biopharmaceutical company. The agreement includes a tiered supply price for APIs after the client's terminal formulation is approved in China.

The share of Chinese peptide CDMOs in the global market is expected to rise from 5% in 2020 to 9% in 2025, a significant increase that mirrors the growing importance of peptide drugs in the pharmaceutical industry.

The global non-insulin peptide drug market surpassed the insulin peptide drug market for the first time in 2017 and is expected to exceed USD 100 billion by 2030. The GLP-1 segment, dominated by semaglutide and tirzepatide, has opened a new frontier, elevating the market to a new level.

Eli Lilly's GLP-1 triple hormone receptor agonist, retatrutide, showed promising Phase 2 clinical results in treating metabolic dysfunction-associated steatotic liver disease (MASLD), reducing liver fat content by up to 86%.

Tide Pharmaceutical, a peptide CRDMO company, has filed for an IPO in Hong Kong at the end of May and aims to construct infrastructure, expand capacity, and develop customers for GLP-1 products. According to Tide Pharmaceutical's prospectus, the average cooperation time with its major customers is 14 years, and the customer retention rate exceeded 97% from 2018 to 2023.

Developing new processes, such as liquid-phase synthesis, is becoming a breakthrough direction for some companies in the peptide industry. As companies continue to innovate and improve their production methods, the future of the peptide drug market looks bright.

In conclusion, the peptide drug market is experiencing significant growth, and Chinese CDMOs are playing an increasingly important role. With the proliferation of generic peptide drugs and the development of new processes, the future of the peptide industry looks promising.

China poised to drive expansion in peptide industry, capitalizing on GLP-1 advancements