The peptides and oligonucleotides (P&O) market in Europe and the USA has emerged as one of the most dynamic and fast-growing segments of the pharmaceutical industry. This surge is driven by advances in biotechnology, the maturation of RNA-based therapeutics, and the growing prevalence of chronic and genetic diseases requiring targeted therapies.

Market Size and Growth Dynamics

According to Evaluate Pharma, the global peptide therapeutics market has been valued at approximately USD 45 billion in 2023 and is projected to reach approximately USD 130 billion by 2030 with a compound annual growth rate (CAGR) of above 10% from 2023 to 2030.

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Role of CDMOs and Manufacturing Trends

Given the complexity and capital intensity of manufacturing these molecules, pharmaceutical and biotech firms are increasingly outsourcing production to CDMOs. In both Europe and the USA, CDMOs are racing to scale up capacity and capabilities in response to strong demand.

Key Players and Recent Expansions:

- Bachem (Switzerland & USA) has committed over CHF 400 million in investment between 2024 and 2025, expanding its peptide and oligonucleotide production in Bubendorf, Vista, and Torrance. A new large-scale plant, Building K, is expected to come online in 2025.

- PolyPeptide Group (Sweden, Belgium, France) is doubling its SPPS capacity in Malmö, launching large-scale production in Belgium, and expanding its Strasbourg facility. Combined investments exceed €100 million.

- CordenPharma (Switzerland & USA) ambitious expansion plans are set to propel its Peptide Platform business beyond the €1 billion sales milestone by 2028, reinforcing CordenPharma's position as a market leader in integrated supply of small to large-scale services from APIs to Drug Products, for both Injectable and Oral Peptides.

As part of this strategy, CordenPharma has finalized plans to establish a state-of-the-art peptide manufacturing facility in Switzerland located at Getec Park in Muttenz, just 8 km outside Basel - a major biotech and pharma hub within Europe.

This >€500 million investment will feature multiple manufacturing lines capable of supporting small, medium, and large-scale peptide production with small- to large-scale Solid Phase Peptide Synthesis (SPPS) reactors for GLP-1 and non-GLP-1 peptide projects - with a total SPPS reactor capacity of more than 5,000 L. The new state-of-the-art facility will feature advanced automation, cutting-edge digitalization, and innovative peptide production technologies, ensuring compliance with the most stringent regulations, including BLA requirements. With the main construction and qualification phase taking place between 2025 and 2027 and start of commercial activities to begin in the first half of 2028, the company is proud to generate over 300 new jobs, contributing to economic growth and innovation of the region.

In their Boulder, Colorado US facility, both expansions to existing lines and the construction of a new greenfield production area have already begun in parallel to the Switzerland initiative. The expansion will more than double the existing SPPS reactor capacity at CordenPharma Colorado by adding an additional 25,000 L of SPPS capacity - making it a total reactor capacity of >42,000 L by 2028.

- Lonza (Switzerland, Netherlands, USA), a major oligonucleotide player, acquired Roche's biologics site in Vacaville for $1.2 billion and is expanding in the Netherlands and Houston to support both peptide and advanced therapy production.

- WuXi STA (China) is also investing globally, having opened a 30,000-square-foot facility for oligonucleotide and peptide conjugate production in Changzhou, reinforcing its presence as a global CDMO competitor.

Applications and Pipeline Development

According to the GlobalData drug database, accessed in January 2025, approximately 800 peptide drug projects (synthetic and recombinant) were in development, of which approximately 300 were in clinical development, with 70 in phase III or pre-registration. Based on third-party market reports, over 100 peptide-based therapies were approved by theUS Food and Drug Administration (FDA) as at the end of 2024.

Outlook and Challenges

The outlook for the P&O market remains robust. Europe and the USA are expected to account for more than €40 billion in combined annual revenues by 2030. However, challenges persist. These include scale-up complexity, regulatory scrutiny over sequence integrity and impurities, and limited global GMP capacity.

Nonetheless, continued investment by CDMOs is expected to alleviate supply constraints, accelerate therapeutic timelines, and support the next generation of precision medicines.