According to the performance forecast for the first quarter of 2025 released by Shengnuo Biotechnology, it is expected to achieve a net profit attributable to 39.1985 million yuan to 47.9092 million yuan in the first quarter of 2025, an increase of 22.7262 million yuan to 31.437 million yuan compared to the same period last year, a year-on-year increase of 137.97% to 190.85%.

 

 

 

The key driving force behind such significant performance growth is the peptide API business. Shengnuo Biotechnology stated that the company closely follows the development trend of the peptide industry and fully expands its domestic and international marketing markets. In the first quarter of 2025, the company's peptide raw material business achieved a significant increase in sales revenue compared to the same period last year, resulting in a significant year-on-year growth in the company's performance.

 

 

 

In addition, on March 27th, Novartis also anticipated its performance for the first quarter of 2025. It is expected to achieve a net profit attributable to the owners of the parent company of 130 million to 170 million yuan in the first quarter of 2025, a year-on-year increase of 96% to 156%. It is expected that the net profit attributable to the owners of the parent company after deducting non recurring gains and losses in the first quarter of 2025 will be 130 million to 170 million yuan, a year-on-year increase of 9% to 160%.

 

 

 

Regarding the reasons for the performance changes, Novartis also stated that it achieved significant growth in sales revenue of peptide raw materials and other products during the reporting period.

 

 

 

Hanyu Pharmaceutical recently released its Q1 2025 performance forecast, stating that on December 23, 2024, the company's application for Liraglutide Injection to the US FDA was approved, and multiple important orders for peptide preparations and active pharmaceutical ingredients signed with overseas customers have been shipped one after another. The company has also completed the confirmation of relevant accounting items in this period, achieving an increase in revenue for the first quarter of this year. According to the report, it is expected to achieve a net profit attributable to the owners of the parent company of 130 million to 170 million yuan in the first quarter of 2025, a year-on-year increase of 96% to 156%. It is expected that the net profit attributable to the owners of the parent company after deducting non recurring gains and losses in the first quarter of 2025 will be 130 million to 170 million yuan, a year-on-year increase of 9% to 160%.

 

Analysts point out that the performance growth of companies such as Sinovac Biotech and Novartis is not an isolated case, but a microcosm of the overall prosperity of the peptide API industry. In recent years, with the rapid growth in sales of GLP-1 drugs such as semaglutide and tilboptide, the demand for peptide active pharmaceutical ingredients has been ignited.

 

 

 

It is estimated that by 2030, the demand for raw materials for these two injections will reach the level of 50 tons. More notably, oral formulations have higher raw material consumption due to their lower bioavailability, and the expected demand is expected to exceed 100 tons. At the same time, GLP-1 drugs have shown great potential in new indications such as NASH (non-alcoholic fatty liver disease) and Alzheimer's disease, with a significant increase in commercial orders. ​

 

 

 

From the perspective of production technology, the barrier to peptide production technology is quite high, and solid-phase synthesis in chemical synthesis is currently the mainstream production method. Although the global peptide raw material production capacity is in the expansion stage, it is difficult to release large-scale production capacity in the short term, and the market pattern of supply exceeding demand will continue in the foreseeable future. It is worth mentioning that China, as the main supplier of GLP-1 raw materials, has few enterprises with large-scale production capacity. It is expected that domestic production capacity will gradually be put into the market in bulk after 2025. ​

 

 

 

In the fierce market competition, the advantages of peptide raw material pharmaceutical enterprises with differentiated scale and cost control capabilities are fully demonstrated. Through technological innovation, Ruotai Biotechnology has successfully established a solid-liquid fusion technology platform for large-scale production of long-chain peptide drugs, with a production capacity of over 10 kilograms per batch. Hanyu Pharmaceutical, Shengnuo Biotechnology and other companies are also actively participating in the wave of capacity expansion, continuously enhancing their market competitiveness through technological innovation and strategic cooperation. These enterprises have demonstrated strong performance growth in the current market environment where supply exceeds demand, thanks to their advantage in first mover production capacity. From a long-term perspective, enterprises with large-scale production capabilities will have stronger profitability in future price competition, and even if they face downward pressure on prices, they can ensure that the total profit remains at a considerable level.

 

 

 

In addition to market demand and production technology, the policy environment also provides strong support for the development of the peptide API industry. The series of policies issued by the government, such as the "Opinions on Promoting Innovative Development of the Pharmaceutical Industry," strongly support the research and development of innovative drugs. They not only simplify the approval process, but also provide substantial benefits such as tax incentives, injecting strong impetus into the research and innovation of peptide drugs. At the same time, the emergence of new technologies such as synthetic biology and mRNA display platforms has provided possibilities for the iterative upgrading of peptide drug technology, helping enterprises overcome the challenges of peptide drug stability and activity.

 

 

 

On the demand side, there is a strong demand for peptide drugs in the fields of cancer and metabolic diseases. Represented by GLP-1 weight loss drugs, as well as anti-tumor peptide drugs, especially GLP-1 drugs, the application scenarios have been further expanded. With the acceleration of population aging, the demand for peptide drugs in fields such as cardiovascular and neurodegenerative diseases is also increasing. ​

 

 

 

Looking ahead, the peptide API industry has a bright future. With the continuous expansion of the application scope of GLP-1 drugs and the continuous improvement of the market, it is expected that the peptide API market will continue to maintain a high-speed growth trend in the coming years. At the same time, the continuous development of new indications and the ongoing research and development of new drugs will further open up the market space for peptide drugs. On this track full of opportunities and challenges, enterprises with core technologies, production capacity advantages, and the ability to keep up with policy guidance and actively innovate are expected to stand out in future market competition. The outstanding achievements of companies such as Shengnuo Biotechnology will also inspire more enterprises to enter this field and jointly promote the sustained prosperity and development of the peptide raw material pharmaceutical industry. ​