Market Trends of Peptide And Oligonucleotide CDMO Industry
The Therapeutics Segment Holds a Significant Market Share and is Expected to Continue the Same During the Forecast Period
Peptide and oligonucleotide therapeutics possess multifaceted applications and share manufacturing and regulatory similarities, with advancements in formulation increasing product complexity and necessitating innovative solutions. Collaboration with a proficient contract development and manufacturing organization facilitates drug developers' manufacturing requirements, enabling them to prioritize their development efforts.
The therapeutic application of peptides and oligonucleotides is expected to increase drug development activities and contribute to market growth. Peptides are being explored for targeted cancer therapies and managing conditions like diabetes. The growing burden of these diseases is expected to propel the segment's growth. For instance, according to 2024 statistics published by the American Cancer Society (ACS), the incidence of cancer cases was estimated to increase from 1.93 million in 2021 to 2.00 million in 2023, a rise of more than 60 thousand cases in two years, demonstrating a rapid growth in the incidence of cancer cases in the country. Peptides and oligonucleotides are being explored for targeted cancer therapies. CDMOs contribute to the development and production of peptide-based anticancer drugs.
Moreover, the launch of peptides and oligonucleotides production capacity is expected to boost the market during the forecast period. For instance, in September 2023, CordenPharma announced the inauguration of increased commercial peptide production capacity with newly upgraded facilities at CordenPharma Colorado, the largest solid-phase peptide synthesis (SPPS) manufacturing facility worldwide.
Hence, the therapeutic applications of peptides and oligonucleotides, along with the strategic initiatives taken by market players, are expected to drive the growth of this segment during the forecast period.
North America is Expected to Hold a Significant Market Share During the Forecast Period
In North America, the peptide and oligonucleotide CDMO market is expected to grow owing to established research facilities, high investment in R&D for peptide and oligonucleotide-based therapeutics, and the growing burden of chronic diseases. The demand for biopharmaceuticals, including peptides and oligonucleotides, has been rising. CDMOs in North America are well-positioned to cater to this demand by offering specialized services in developing and manufacturing these complex molecules.
Continuous investments in research and development activities by pharmaceutical and biotech companies contribute to expanding the peptides and oligonucleotide CDMO market. These investments often involve collaborations with CDMOs to access specialized expertise and infrastructure. For instance, in January 2023, Agilent Technologies Inc. invested approximately USD 725 million to double the manufacturing capacity of therapeutic nucleic acids in response to the market's rapid growth. This investment reflects the strong demand for therapeutic oligonucleotide and the unmatched quality and service of therapeutic oligonucleotide contract development and manufacturing organization.
Additionally, in December 2022, Asymchem Laboratories (Tianjin) Co. Ltd, a CDMO, announced the opening of a new site in Woburn, Massachusetts. The latest Boston site provides early-stage R&D services, including small molecules, peptides, and oligonucleotides.
Hence, the North American peptides and oligonucleotide CDMO market is expected to boost due to increasing demand, advancements in therapeutics, outsourcing trends, regulatory support, and R&D investments.
