This article, with insights from Kevin Li, Chief Marketing Officer, BioDuro, was originally featured in the Contract Pharma May 2025 Issue among other members of the roundtable discussion CDMOs: Key Leader Insights. Visit the Contract Pharma website: contractpharma.com
Peptide boom reshapes CRO and CDMO industries
The explosive success of GLP-1 receptor agonists — such as semaglutide (Ozempic, Wegovy) and tirzepatide (Mounjaro, Zepbound) — is shaping the contract research (CRO) and contract development and manufacturing (CDMO) sectors. At the core of GLP-1 therapies is a class of complex peptides, driving a surge in the development of peptide-based therapies. As a result, the CRO and CDMO industries are seeing rapidly increasing investment in solid-phase peptide synthesis (SPPS) capabilities and capacity, including discovery chemistry for various complex peptides and peptide-based conjugates, scale-up production, and advanced analytical platforms.
While injectable GLP-1s dominate the current market, oral peptide formulations are emerging quickly. CROs and CDMOs are investing in advanced formulation technologies such as permeation enhancers and enteric coatings to improve peptide oral bioavailability. They are also expanding their offerings to include more in vitro and in vivo permeability, stability, and absorption studies tailored specifically for oral peptides.
ADCs drive demand for integrated solutions
Antibody-drug conjugates (ADCs) are another key driver of the surge in demand for highly specialized capabilities across both biologics and small molecule synthesis. As more pharma and biotech companies race to develop targeted oncology therapies, CDMOs are heavily investing in high-potency compound handling for payload and linker synthesis, as well as in bioconjugation capabilities. Meanwhile, CROs are expanding their integrated discovery platforms to include antibody engineering, in vitro and in vivo efficacy modeling, and testing. The rise of ADCs is blurring the lines between biology and chemistry, pushing service providers to offer multidisciplinary, end-to-end solutions to support this sophisticated modality.
Global strategies strengthen supply chain resilience
As geopolitical tensions and global supply chain disruptions become increasingly frequent, biopharma companies are placing greater emphasis on supply chain resilience. This has led to a growing shift toward dual sourcing strategies. Rather than relying on a single site or supplier, sponsors are now actively seeking CDMOs with global development and manufacturing capabilities across multiple geographies. In response, CDMOs are expanding their global footprint, investing in mirrored capabilities and capacities across continents, and building technology transfer frameworks that enable rapid scale-up or seamless transition between sites.
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