China-based ChengDu Shengnuo Biotechnology Co., Ltd., (SHA: 688117) has announced plans to raise up to RMB 160 million (USD 22 million) through a private placement. The net proceeds from this capital increase are designated for Contract Development and Manufacturing Organization (CDMO) work on innovative peptide drugs, the industrialization of active pharmaceutical ingredients (APIs), and supplementary working capital.
Peptide Drugs: A Growing Market with Broad Clinical Applications
Peptide drugs are known for their high activity, good safety, strong specificity, and wide-ranging indication applicability. They are extensively used in clinical practice for conditions such as tumors, diabetes, cardiovascular diseases, osteoporosis, gastrointestinal diseases, central nervous system diseases, immune diseases, anti-virus, and antibacterial treatments. According to market research by Frost & Sullivan, the global peptide drug market saw a valuation of USD 56.8 billion in 2016, rising to USD 62.8 billion by 2020, with an annual compound growth rate of 2.54%. The market is projected to reach USD 96 billion by 2025, with an anticipated annual compound growth rate (CAGR) of 8.86%.
Global Peptide CDMO Market Growth
The global peptide Contract Development and Manufacturing Organization (CDMO) market has also experienced significant growth, expanding from USD 1.3 billion in 2017 to USD 2.2 billion in 2021, with a CAGR of 14.06%. Future growth is forecasted at a CAGR of 25.17%, with the market expected to reach USD 5.4 billion by 2025. This robust expansion highlights the potential for companies like ChengDu ShengNuo Biotechnology to capitalize on the increasing demand for peptide drugs and CDMO services.-Fineline Info & Tech
