Peptide Boom, Big and Small
Devin Eldridge@devinridge
−1.2%
since Oct 9
The idea
I believe peptides become one of the biggest drug categories of the next decade, with profits spread far beyond today's two giants. So this basket owns both sides: small and mid-size companies engineering patentable peptides that could get bought out at a premium, and the telehealth sellers and compounders positioned to profit from natural peptides that can't be patented. Underneath that sits the factories and device makers every peptide needs regardless of winner, plus the two giants as ballast.
What it owns
- Every peptide drug, whether patented or compounded, must be manufactured, tested and delivered to patients, so these suppliers benefit regardless of which developer wins. · Thermo Fisher Scientific Inc.It manufactures drugs under contract for other companies and sells laboratory supplies, earning revenue from peptide production regardless of which developer succeeds., West Pharmaceutical Services, Inc.It manufactures the stoppers, seals and components used in injectable drug delivery systems, including pens used for GLP-1 peptide therapies., Stevanato Group S.p.A.It manufactures glass cartridges and syringes used in peptide injection pens, a supplier role that generates revenue regardless of which peptide therapy succeeds., Waters CorporationIt sells instruments laboratories use to test peptides for purity, a requirement for all peptide manufacturers whether producing branded or compounded versions., Repligen CorporationIt provides filtration and purification equipment that drugmakers use to process peptides and other biologics, benefiting from expanded manufacturing capacity across the industry., Embecta Corp.It manufactures pen needles, the disposable tips required for each injection of peptide therapies from pen-based delivery systems.31%
- Patented peptide therapies for metabolic, rare genetic and other diseases demonstrate the category can generate substantial revenue well beyond weight loss applications. · Protagonist Therapeutics, Inc.It develops peptides formulated as pills rather than injections through partnerships with larger drugmakers, potentially expanding access to peptide therapies beyond injection-based patients., Rhythm Pharmaceuticals, Inc.It already commercializes setmelanotide for rare genetic forms of obesity, demonstrating that a small company can build a sustainable business from a patented peptide., Ascendis Pharma A/SIt uses TransCon technology to extend the duration of peptide therapies, enabling weekly dosing instead of daily injections, and currently sells treatments for growth disorders and hypoparathyroidism., Bicycle Therapeutics plcIt develops small ring-shaped peptides designed to deliver cancer drugs directly to tumors, exploring whether peptides can generate value in oncology applications.20%
- Small companies developing patented peptide drugs for weight loss and blood sugar control are competing in the largest peptide market to date. · Viking Therapeutics, Inc.It is an independent developer of VK2735, a peptide for obesity, and is testing an oral formulation to maintain weight loss after injectable treatment., Xeris Biopharma Holdings, Inc.It provides formulation technology that makes injectable drugs stable and user-friendly, expertise that peptide developers need, and sells its own injectable products directly., Amylyx Pharmaceuticals, Inc.Its avexitide peptide completed a late-stage trial for dangerous blood sugar drops after weight loss surgery and is advancing toward regulatory submission., Altimmune, Inc.It is developing pemvidutide, a peptide targeting fatty liver disease and obesity, representing a small company's bet that peptides can address metabolic conditions beyond weight loss.16%
- These companies own the largest peptide drugs on the market today and have the scale to acquire smaller developers whose therapies prove successful. · Eli Lilly and CompanyIt owns tirzepatide, one of the largest peptide drugs today, and possesses the financial resources to acquire smaller peptide companies that demonstrate clinical success., Novo Nordisk A/SIt owns semaglutide, the peptide that initiated the current boom, and is positioned as a natural acquirer of smaller peptide companies with promising therapies.15%
- When peptides cannot be patented, profit flows to whoever reaches patients first, and telehealth platforms have become the dominant channel for these treatments. · Hims & Hers Health, Inc.It operates a telehealth platform that profits by delivering compounded and personalized peptide treatments directly to patients who pay out of pocket., LifeMD, Inc.It operates a telehealth platform offering weight management programs, providing an alternative channel for distributing unpatented peptide treatments to patients.10%
- Cash8%