Peptide Synthesis: Supporting Next Generation Targeted Therapies

Peptides are specialized molecules composed of short chains of amino acids and are used primarily as the active ingredients in a new class of targeted therapeutics. Peptide synthesis is achieved through various advanced methodologies, including chemical processes like solid-phase (SPPS) and liquid-phase (LPPS), as well as hybrid and non-chemical approaches.

Peptides are being extensively used as therapeutics to treat various disorders, including metabolic diseases, oncological disorders, and hormonal imbalances due to their high target specificity and safety. The clinical and commercial success of these therapies (particularly GLP-1 agonists), for chronic conditions, has created a significant global demand for peptide therapeutics.

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However, manufacturing of the required peptide APIs requires specialized equipment, process chemistry expertise, and rigorous purification and validation, posing a significant challenge for pharmaceutical companies. To address these manufacturing challenges and mitigate high fixed costs, the pharmaceutical industry is increasingly adopting an outsourcing model.

Drug developers are strategically partnering with specialized contract manufacturing organizations (CMOs) that possess the dedicated infrastructure and technical expertise required for reliable, large-scale, and cGMP-compliant peptide API production. CMOs offer capabilities ranging from pre-clinical supply to large-scale cGMP manufacturing, enabling pharmaceutical companies to streamline their operations, reduce fixed costs, and ensure a reliable, compliant supply.

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Driven by the rising prevalence of chronic diseases and a growing therapeutic pipeline of peptide therapeutics, the peptide synthesis market size is valued at $3.8 billion in 2025, growing at a CAGR of 4.8%, during the forecast period, 2025-2035.

The current market landscape features a list of 95 players including very large, large, mid-sized and small companies. These companies have the required expertise to provide peptide API contract manufacturing services across different geographical regions. Notably, the majority of peptide API contract manufacturers (close to 55%) are headquartered in Asia-Pacific. Further, 60% of the players engaged in this domain are large and very large firms.

Majority (~70%) of these service providers primarily offer generic APIs; of these more than 85% provide services for analytical / process development.

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Almost all (99%) of the peptide API manufacturers utilize chemical synthesis methods; of these, solid phase synthesis (SPPS) is the most utilized approach. Notably, a vast majority of the service providers (over 90%) offer commercial-scale manufacturing, reflecting the high demand for approved therapeutics.

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This release was published on openPR.