Peptide and Oligonucleotide CDMO Market

Peptide and Oligonucleotide CDMO Market Size

Peptide and Oligonucleotide CDMO Market was valued at USD 2.3 billion in 2023 and is expected to register at a CAGR of over 12.1% from 2024 to 2032, due to the increasing demand for personalized medicine and targeted therapies, which require customized peptides and oligonucleotides. Additionally, the rising prevalence of chronic diseases such as cancer, cardiovascular disorders, and genetic disorders has led to a growing need for innovative therapeutic solutions, further fuelling the demand for peptide and oligonucleotide CDMO services.

Furthermore, advancements in biotechnology and the pharmaceutical industry have led to the development of more complex and potent peptides and oligonucleotides, creating opportunities for CDMOs to provide specialized manufacturing expertise. The expanding applications of peptides and oligonucleotides in areas such as diagnostics, drug delivery, and therapeutics are further driving the growth of the market.

Peptide and Oligonucleotide CDMO Market Trends

• Growing adoption of personalized medicine is a key driver propelling the peptide and oligonucleotide contract development and manufacturing organization (CDMO) market. Peptides and oligonucleotides play crucial roles in personalized medicine, as they can be designed to target specific genes, proteins, or pathways involved in diseases.
  
• The U.S.FDA has approved several personalized medicines based on peptides and oligonucleotides. For instance, in 2022, five TIDES (four peptides and one oligonucleotide) were authorized by the FDA, including Vutrisiran (AmvuttraTM) for treating polyneuropathy of hereditary transthyretin-mediated amyloidosis and Gadopiclenol (EluciremTM) for detecting lesions with abnormal vascularity in the central nervous system and body.
  
• Additionally, in 2020, six peptides and oligonucleotides were approved such as Viltolarsen (ViltepsoTM) for Duchenne’s muscular dystrophy and Lumasiran (OxlumoTM) for primary hyperoxaluria type 1.
  
• As a result, pharmaceutical and biotechnology companies are increasingly outsourcing the development and manufacturing of peptides and oligonucleotides to specialized CDMOs to capitalize on their expertise and capabilities in this field.
  

Peptide and Oligonucleotide CDMO Market Analysis

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Based on the product, the market is classified into peptide and oligonucleotides. Peptide dominated the market with revenue of USD 1.5 billion in 2023.

• Peptides play a crucial role in various therapeutic areas such as oncology, metabolic disorders, and infectious diseases, driving the demand for peptide-based drugs.
  
• Peptide therapeutics are also favored for their high specificity and lower toxicity compared to traditional small molecule drugs, making them an attractive option for drug developers.
  
• Additionally, advancements in peptide synthesis technologies have enabled the production of complex peptides with high purity and efficiency, further boosting their market presence.

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Based on service type, the peptide and oligonucleotide CDMO market is segmented into contract manufacturing and contract development. The contract manufacturing segment held a dominant market share of 65.2% in 2023.

• The increasing demand for peptides and oligonucleotides in pharmaceuticals, diagnostics, and biotechnology drives the growth of contract manufacturing in this market.
  
• Contract manufacturing offers several advantages, including cost-effectiveness, expertise, and flexibility. Companies can benefit from the specialized knowledge and infrastructure of CDMOs without the need to invest in their own facilities.
  
• Additionally, outsourcing manufacturing allows companies to focus on their core competencies, such as research and development, while leaving the production to experts. These factors together aid in high segmental growth of contract manufacturing segment.
  

Based on application, the peptide and oligonucleotide CDMO market is classified into therapeutics, diagnostics, and research. The therapeutics segment is expected to reach USD 3.3 billion by 2032.

• Peptides and oligonucleotides are vital components in developing targeted therapies, such as peptide-based vaccines and nucleic acid-based therapeutics.
  
• Further, rising demand for personalized medicine and the increasing prevalence of chronic diseases necessitates development of novel therapies.
  
• Additionally, the increasing adoption of peptides and oligonucleotides in drug development pipelines by pharmaceutical and biotechnology companies further contributes to the segment's strong market position.
  

Based on end-use, the peptide and oligonucleotide CDMO market is classified into pharmaceutical companies, biopharmaceutical companies, and other end-users. The pharmaceutical companies segment dominated the market in 2023 and is anticipated to grow at a CAGR of over 12% through 2032.

• High segmental growth can be attributed to the increasing trend of outsourcing by pharmaceutical companies. These companies rely on CDMOs to access specialized expertise and infrastructure for the development and production of peptides and oligonucleotides.
  
• Secondly, outsourcing provides flexibility and scalability, allowing pharmaceutical companies to adjust their production capacity quickly in response to changing market demands without the need for significant investments in new facilities or equipment.
  
• Additionally, working with CDMOs helps pharmaceutical companies accelerate their development timelines and reduce costs. All these factors make pharmaceutical companies key end-users of CDMO services.

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In 2023, North America region captured about 44.9% share of global peptide and oligonucleotide CDMO market and is expected to reach USD 2.8 billion by 2032.

• High reginal growth can be attributed to well-established pharmaceutical and biotechnology industries, advanced healthcare infrastructure, and strong regulatory framework.
  
• Additionally, the region benefits from a skilled workforce, technological advancements, and a high level of research and development activities.
  
• These factors contribute to the region's leading position in the global market, making it a key hub for companies looking to outsource these services.
  

Peptide and Oligonucleotide CDMO Market Share

The competitive landscape of the peptide and oligonucleotide CDMO industry is characterized by the presence of established pharmaceutical companies vying for market share. Key market players adopt a combination of strategic initiatives such as collaboration & partnership, global expansion, research and development, service diversification, and regulatory compliance to maintain a competitive edge in the market.

Peptide and Oligonucleotide CDMO Market Companies

Prominent players operating in the peptide and oligonucleotide CDMO industry are as mentioned below:

• Aurigene Pharmaceutical Services Ltd.
• Bachem Group
• CordenPharma International
• Creative Peptides
• Curia Global, Inc.
• EUROAPI S.A.
• Merck KGaA
• PolyPeptide Group
• STA Pharmaceutical Co. Ltd.
• Sylentis, S.A.
  

Peptide and Oligonucleotide CDMO Industry News

• In August 2023, EUROAPI announced its acquisition of BianoGMP. This move helped the company to bolster its capabilities in the contract development and manufacturing organization (CDMO) sector, specifically within the rapidly expanding oligonucleotide market.
  
• In May 2023, PolyPeptide and Numaferm announced a partnership to collaborate on the development and production of peptides. This partnership aimed to leverage PolyPeptide's cGMP manufacturing capacities, regulatory expertise, and market access along with Numaferm's biochemical production platform and sustainable peptide manufacturing expertise. This helped the company to expand its manufacturing capabilities.
  

This peptide and oligonucleotide CDMO market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 - 2032 for the following segments:

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Market, By Product

• Peptide
• Oligonucleotides

Market, By Service Type

• Contract manufacturing
• Contract development

Market, By Application

• Therapeutics
• Diagnostics
• Research

Market, By End-use

• Pharmaceutical companies
• Biopharmaceutical companies
• Other end-users

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • Rest of Middle East and Africa