Riding the strength of GLP-1 agonists and renewed interest in peptide-based development, several CDMOs are proceeding with large-scale investments in peptide development and manufacturing as other companies are joining the peptide space.

By Patricia Van Arnum, Editorial Director, DCAT, pvanarnum@dcat.org

The strength of TIDES
The global CMDO market for peptides and oligonucleotides (TIDES) is showing strong growth, fueled by new drug development, particularly for peptide-based drugs. The global CDMO market for peptides and oligonucleotides is expected to reach $5.67 billion by 2030, according to a 2024 analysis by Grand View Research, a California- and India-based market research firm, registering a compound annual growth rate of 12.5% from 2024 to 2030. The peptides segment accounts for the largest share at 66.3% based on 2023 estimates and is buoyed by the blockbuster success of glucagon-like peptide 1 (GLP-1) agonists, used to treat obesity and Type 2 diabetes, and other peptide drugs in development.

This year (2025), several CDMOs/CMOs have announced large-scale peptide expansions, and others are entering the peptide space. Highlights of key expansions in are outlined below.

CDMOs/CMOs expand
CordenPharma. One of the largest peptide expansions by a CDMO/CMO is CordenPharma, which is advancing a more than EUR 1-billion ($1.1-billion) strategic investment in peptide development and manufacturing. The company’s expansion plans include an additional 30,000 L of solid-phase peptide synthesis (SPPS) capacity and 26,000 square meters of production area. Backed by several multi-year customer contracts with a total sales volume of more than EUR 4 billion ($4.4 billion), the record investment by the company is set to propel its Peptide Platform business beyond the EUR 1-billion ($1.1-billion) sales milestone by 2028. 

In Switzerland, CordenPharma announced plans to establish a greenfield peptide manufacturing facility outside Basel located in Muttenz at Getec Park. With small- to large-scale SPPS reactor capacity for glucagon-like peptide 1 (GLP-1) and non-GLP-1 peptide projects totaling more than 5,000 L. The main construction phase will take place between 2025 and 2027, with site qualification to be completed before the end of 2027, and commercial activities beginning the first half of 2028.

In its CordenPharma Colorado (US) site, the company will invest more than $500 million in additional large-scale Peptide active pharmaceutical ingredient manufacturing capacity, which includes revamping existing buildings and a greenfield construction for new production areas, with a total usable area exceeding 6,000 square meters. The expansion more than doubles existing SPPS reactor capacity by adding an additional 25,000 L of SPPS capacity, making it a total reactor capacity of more than 42,000 L by 2028. The main construction phase, which, started at the end of 2024, is anticipated for completion by end of 2027, with qualifications of the new production areas and start of commercial activities targeted between the second half 2026 and the first half 2028.

The expansions will bolster the company’s existing peptide capabilities, including its Frankfurt, Germany, facility, which received GMP certification in January 2025 for early- to mid-stage clinical peptide manufacturing. This full integration across its facility network enables accelerated peptide-based therapeutic development for both GLP-1 and non-GLP-1 peptide projects, including forward integration with lipid nanoparticle (LNP) GMP manufacturing, oral solid dosage peptide development, and broad sterile injectable development and manufacturing capabilities.

SK pharmteco. SK pharmteco is investing $260 million to establish a five-story, 135,800-square foot facility in Sejong, South Korea, to enhance the company’s peptide and small-molecule API manufacturing capabilities. This expansion will include eight production trains capable of producing tens of metric tons annually, as well as peptide R&D facilities, cGMP kilo labs, and a cGMP pilot plant to support early-stage clinical, development to commercial production.

Polypeptide Laboratories. In January (January 2025), Polypeptide Laboratories reported on its EUR 100-million ($113 million) expansion to double SPPS capacity at its manufacturing site in Malmö, Sweden. The additional production capacity will mainly serve to fulfill a large commercial agreement. Last December (December 2024), the company started production of new large-scale SPPS capacity at its manufacturing site in Braine-l’Alleud, Belgium, with the ramp-up planned throughout 2025.

Bachem. Bachem, a CDMO of peptides and oligonucleotides, is advancing an expansion at its site in Bubendorf, Switzerland. Production of first test batches was slated to take place from the second quarter of 2025. The building will then be expanded on a modular basis, so that, ultimately, production capacity in Bubendorf will more than double in the final expansion phase, according to the company’s 2024 annual report. In the Swiss industrial area of Sisslerfeld, another production site is planned, which will be geared toward large-scale production. The entire area provides up to 155,000 square meters for further long-term expansion. Bachem is acquiring the land  for the site in stages. A third portion of land was purchased in the first half of 2024. Bachem intends to submit a site development plan to the authorities ahead of pursuing first construction applications in 2025. In Vista, California, capacity for medium- and larger-scale production volumes is being expanded, partly in order to serve larger strategic customer projects in conjunction with the company’s site in Bubendorf. In Torrance, California, the site will focus on small-scale and development projects as well as on modernizing the facility. A joint technical center of excellence for peptides was set up in 2024 as part of the increased networking between the locations.

Other companies advance peptide capabilities
Almac. Last year (2024), Almac added a 28,000-square-foot GMP facility at its headquarters in Craigavon, Northern Ireland, which more than doubled the company’s peptide API manufacturing capacity and provides synthesis, purification and isolation capabilities for clinical development and commercial products.

Axplora. Axplora is investing EUR 50-million ($52-million) at its site in Mourenx, France, for a large-scale high-performance liquid chromatography (HPLC) and continuous chromatography facility to add capabilities and capacities for peptide purification and biologics handling. The investment will position the site as a Center of Excellence for API Purification. The facility will provide purification for both small- and large-molecule programs, including supporting the development of glucagon-like peptide (1 GLP-1) drugs. The facility is slated to be ready for biologics license applications in 15 months (as reported in March 2025) with the first supply of GLP-1s expected in 2026. 

BioDuro. BioDuro, a contract research, development, and manufacturing organization, began operations in January (January 2025) at its SPPS scale-up laboratory at its Shanghai, China. The kilogram-scale peptide laboratory is equipped with automated solid-phase peptide synthesizers, cleavage systems and freeze-drying equipment, supporting peptide synthesis scale-up to 800 mmol. It is designed to produce a wide range of peptide molecules, including linear peptides, cyclic peptides, and various peptide drug conjugates. The lab complements the company’s peptide discovery synthesis center at its Beijing campus, where the focus is on early-stage research and development.

Cambrex. Last September (September 2024), Cambrex announced that Snapdragon Chemistry, a Cambrex company, had successfully developed a new liquid-phase peptide synthesis (LPPS) technology that uses its traditional active pharmaceutical ingredient (API) batch reactors and continuous flow. The company says the technology materially reduces solvent demand and the need for excess reagents compared to standard SPPS processes. The technology supports peptides up to 12 residues long, with larger peptides then assembled in liquid phase, using a convergent fragment coupling approach. Processes developed with its LPPS technology can be scaled in the same way as traditional small molecules. In addition to the LPPS, Cambrex developed capabilities in peptide and protein crystallization, including a crystallization screening platform specifically for the discovery of crystalline forms of peptides and proteins. 

Neuland Laboratories. Neuland Laboratories is investing $30 million to establish a dedicated peptide manufacturing. Its technical capabilities in peptide synthesis, include solid-phase, liquid-phase, and hybrid-phase synthesis. The new facility will be equipped with advanced technology, including DSC automated systems, with a capacity of 6.37 KL. A modernized research and development facility will feature advanced equipment such as PeptiSystems (automated peptide synthesizers), tangential flow filtration, dynamic axial compression columns with diameters of 150 and 300 mm, quadrupole time-of-flight high-resolution mass spectrometers (QTOF-HRMS), continuous column purification systems, and stability indicators, including fluorescence spectroscopy and ion exchange columns. The facility’s building plan consists of four modules. The execution of Module I is scheduled to be completed by the first half of 2026 and achieve an initial capacity of tens of kilograms annually. The targeted scale-up across all four modules aims to reach a production capacity of over 100 kg.

Granules India. Earlier this year (April 2025), Granules India, a Hyderabad, India-based pharmaceutical manufacturing company, entered the peptide space through its acquisition of Senn Chemicals, a Dielsdorf, Switzerland-based CDMO specializing in peptides. Senn Chemicals provides contract research, development, and manufacturing services, including for custom peptide manufacturing through both liquid-phase peptide synthesis and solid-phase peptide synthesis. It provides development and manufacturing services for peptides, peptide fragments, and amino acid derivatives (AADs). Its cGMP and non-GMP manufacturing capabilities cover new chemical entities for clinical trials, kilo-scale production of cosmetic peptides, and AADs at commercial scale. 

Granules produces active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates, and finished dosage forms. Granules has 10 manufacturing facilities globally, eight in India and two in the US. The acquisition of Senn Chemicals provides the company with an European presence. Granules and Senn have been developing two GLP-1 based APIs, and the companies say that both projects are progressing, and more peptide-based APIs are planned to be added using Senn’s R&D capabilities. 

Sai Life Sciences. Earlier this year (2025), Sai Life Sciences, a contract research, development, and manufacturing organization, inaugurated a dedicated Peptide Research Center at its R&D Campus in Hyderabad, India.The Peptide Research Center provides specialized services across peptide synthesis, discovery, and advanced modalities, including complex conjugates. The facility integrates automation, advanced liquid handling, robotics, and high-throughput systems. The center is integrated with the company’s end-to-end discovery services, spanning synthetic and medicinal chemistry, biology, DMPK (drug metabolism and pharmacokinetics), and toxicology.