Peptide CDMO Is Heating Up:
Leaders Sprint, Specialists Break Out
A concise industry read on GLP-1-driven demand, capacity expansion risks, and who can avoid the "overcapacity trap."
The GLP-1 surge is reshaping outsourcing priorities across the pharmaceutical supply chain, pushing peptide CDMOs into a fast-expanding cycle of capacity buildout and capability upgrades. In this environment, sponsors increasingly evaluate more than scale—they demand delivery confidence, impurity control, and the ability to industrialize complex peptide processes.
GLP-1: The Demand Shock That Pulled Peptides Forward
Based on 2025 Q3 financial reporting, semaglutide generated about USD 25.4B in sales in the first three quarters, while tirzepatide reached about USD 24.8B. Together, these two products represent a market above USD 50B, cementing GLP-1 as a dominant growth engine.
The global pipeline now includes more than 558 GLP-1 innovation programs under development, intensifying competition and drastically increasing the need for reliable external manufacturing partners.
Where Growth Is Concentrating
The market is splitting into two distinct winning profiles: large integrated platforms and focused specialists.
WuXi AppTec’s TIDES business remains a key engine, with revenue growth exceeding 100% year-on-year in Q3 2025. Their backlog supports high delivery visibility, driven by massive capacity reserves.
Focused players like Tide Pharmaceutics show net profit growth outpacing revenue. Their edge lies in differentiated technology (e.g., long-chain synthesis) rather than just "tank volume."
The Overcapacity Question
While competition currently centers on GLP-1-linked delivery speed, the demand structure is evolving. There is a real risk for players who expand capacity without deep technical accumulation.
With semaglutide patent expiry in major markets (US/EU/Japan) expected around 2031, aggressive capacity stockpiling today could lead to underutilization tomorrow. The most resilient CDMOs will be those combining capability depth with disciplined operations.
Canchem Perspective
The peptide CDMO cycle is being pulled forward by GLP-1 demand, but long-term winners won't be decided by headlines alone. Delivery reliability, chemistry depth, and disciplined scale-up operations matter most.
For teams tracking outsourcing trends, Canchem Chemical provides practical support from route scouting to commercial scale-up. We invite you to benchmark our capabilities against your project needs.
Explore our CDMO capabilities or reach out for a technical consultation.