How are GLP-1 therapies reshaping the pharmaceutical market — and what’s next?

The demand for large, complex peptides (30–40+ amino acid residues) with high volume demand is driving innovation in the manufacture of peptide APIs. The standard manufacturing technology for peptides — solid phase peptide synthesis — is not suitable for the economical and sustainable production of large volume peptides. The demand is driving innovation in peptide manufacturing technology.

To meet the demand, manufacturers are adopting solution-phase peptide synthesis, together with convergent approaches where the full-length peptide API is assembled from smaller fragments. These solution-phase methods can be executed in the same infrastructure currently available for small molecule manufacture. Solution-phase synthesis can deliver much more sustainable processes for peptide synthesis with greater efficiency and significantly lower cost of good when compared with solid-phase peptide synthesis.

The purification of peptides presents an additional sustainability and economic challenge. Peptides are typically purified to pharmaceutical quality using high-pressure chromatography, a time- and solvent-intensive method of purification. Development scientists are evaluating the crystallization of peptide fragments to inform the design of convergent synthetic routes to long peptides. Development of crystalline fragments provides an efficient method for quality control and can at least minimize, if not eliminate, the need for chromatography of the final product. Where chromatography is required, multicolumn countercurrent solvent gradient purification (MCSGP) is a new technology that can greatly reduce solvent demands and improve chromatography yields. Membrane purification methods, such as nanofiltration, are also being evaluated as efficient methods to purify peptides.

These new synthetic routes and process technologies for peptide manufacture has initiated debate on what constitutes an appropriate regulatory starting material. The identification of small, well-characterized, crystalline peptide fragments that form the basis of convergent synthesis present the opportunity to justify these fragments as regulatory starting materials.

GLP-1 (glucagon-like peptide-1) therapies are significantly reshaping the pharmaceutical market due to their effectiveness in treating type 2 diabetes and obesity. These therapies work by enhancing insulin secretion, inhibiting glucagon release, and slowing gastric emptying, which helps regulate blood sugar levels and promote weight loss. The success of GLP-1 receptor agonists, such as semaglutide and liraglutide, has led to increased investment and interest in this class of drugs.

The market for GLP-1 therapies is expanding rapidly, with over 100 pipeline drugs at time of writing, driven by the growing prevalence of diabetes and obesity worldwide. Investment into the development of oral formulations, combination therapies and drive in emerging markets are likely to continue this growth.

Astrea Bioseparations and Biotage, leaders in the field of bioprocessing and small molecule purification, offer a range of products that support the development and manufacturing of GLP-1 therapies. Workflows including Astrea Bioseparations' PuraBead® Edge ion-exchange resins and Biotage's flash purification systems could offer a novel and sustainable solution to the traditional solvent hungry and costly RP-HPLC purification methods.

Glucagon-like peptide-1receptor agonists (GLP-1RAs) were originally developed to manage blood glucose in patients with type 2 diabetes, but they are now being used for multiple disease indications and to investigate the biological drivers of obesity and metabolic health.

GLP-1RAs are approved for adults with type 2 diabetes and chronic weight management, with expanded indications for cardiovascular disease, chronic kidney disease, liver disease (MASH), and obstructive sleep apnea. Research is also being conducted to determine their potential to treat obesity-related conditions, such as peripheral artery disease, neurodegenerative disorders, autoimmune diseases, and psychiatric conditions, including schizophrenia and suicidal ideation.

To investigate and validate all these mechanisms of action, biomarkers, and biological pathways, researchers require access to well-characterized biospecimens from healthy and disease-state donors of different ages, sexes, ethnicities, and body mass indexes to represent different metabolic phenotypes. This approach helps to ensure new drug candidates prove safe and effective for a broad patient population.

GLP-1RAs have also progressed beyond single agonist products to include dual and triple agonists, and small molecule oral agents in an effort to optimize metabolic effects and the delivery mechanism (tablet versus injection). Ongoing research will likely uncover additional applications for this exciting new class of drugs.

GLP-1 therapies have rapidly evolved from diabetes to obesity and beyond, becoming one of the most transformative drug classes in recent history. This broadening of therapeutic applications is fueling major investment in R&D, manufacturing, and formulation innovation as companies race to scale production and reach new indications, including cardiovascular, renal, and hepatic health.

The next wave of innovation will focus on oral peptides, multi-modal peptides, and small molecule GLP-1 receptor agonists that improve access and manufacturability. It’s a dynamic landscape and companies are racing to capture the opportunity, including both the well-known originators of today, and biotechs, contract manufacturers, and generic developers.

We’re working closely with customers across the entire drug development process to help build their applications and formulations, scale, quality, and supply reliability, which are critical for success. Establishing and validating the right process will help companies build robust pathways to deliver GLP-1 drugs with greater efficacy to markets and patients faster.

GLP-1 therapies have reframed what’s possible in metabolic disease. These drugs deliver unprecedented weight loss in obesity and superb glycemic control in diabetes, outcomes that were elusive until now. As a result, metabolic health is now center stage in pharma, with companies racing to develop next-generation incretins and even oral small molecule mimics. The impact goes beyond weight: GLP-1 receptor agonists are showing benefits in fatty liver disease and even hinting at reduced cancer incidence in patients with metabolic risks. In short, GLP-1s represent a new, comprehensive approach to medicine, treating multiple conditions at once. At Faeth, we see this metabolic revolution as validation of our mission, but we take a more precise route, targeting tumors’ unique metabolic needs via our MetabOS-guided diets and therapies. This way, we align with the GLP-1 wave’s spirit while innovating beyond it in oncology.

In 2005, Byetta became the first FDA-approved GLP-1 to treat type 2 diabetes, followed by Saxenda, a GLP-1 approved for weight loss in 2014. Surging demand, along with the untapped future potential of GLP-1 products are, in my opinion, the single largest factor impacting pharmaceutical markets.

According to the Centers for Disease Control and Prevention (CDC), the use of GLP-1s to treat diabetes has rapidly increased in the last few years. Today, one in four adults with diabetes uses a GLP-1, and a KFF tracking poll found that roughly one in eight Americans has tried a GLP-1 for weight loss, with 6% of US adults currently using them.

The global market for GLP-1s is projected to reach $157 billion by 2030, up from $53 billion this year. Currently, two major companies produce most of the supply, but with dozens of new GLP-1 drugs in development, many by smaller companies, the use of CDMOs is expected to increase substantially as these smaller companies are less likely to have the in-house capabilities needed to produce them.

With an eye toward the future, GLP-1 drugs are being investigated to treat a wide range of health conditions, including cardiovascular issues, sleep apnea, liver disease, addiction disorders, brain health, and inflammatory conditions.

We’ve all witnessed the surging demand for GLP-1 medications, which has led to a multitude of investments across the pharmaceutical industry, from amping up research and development (R&D) to strategic collaborations and expanded manufacturing capabilities. To support our customers in advancing these convenient, self-injectable solutions for chronic conditions, we acquired Sanofi’s sterile drug product facility in Ridgefield, N.J., which added U.S. capacity and strengthened our global fill-finish capabilities. We’re also expanding our global footprint in the pre-filled syringe space, adding four new lines by 2028, with additional lines as part of future growth that can generally support up to some 60 million units annually.

Looking ahead, the GLP-1 market will continue to see substantial global expansion, fueled by growing clinical demand and an expanding therapeutic pipeline. The potential of GLP-1 medications goes beyond current clinical indications — diabetes and weight management — with potential to innovate into new drug formats and delivery methods, including evaluations for additional indications like cardiovascular. As ongoing research uncovers broader therapeutic applications for large molecule therapies like GLP-1s, we’re collectively advancing patient-centric solutions that improve access, adherence, and outcomes by integrating patients’ experiences, needs and preferences into every aspect of innovation.

The success of GLP-1 therapies has kicked off a race for superior molecules and improved drug delivery. On the drug substance side, companies across the industry are focusing on discovery and development of new GLP-1s and poly-agonists, aiming to boost efficacy and limit side effects. For drug product advancements, innovators are pursuing more patient-friendly alternatives to frequent injections. Alongside emerging oral options, the field is advancing long-acting depot injections, microneedle patches, and subdermal implants to extend dosing intervals and improve adherence.

Delivery breakthroughs for GLP-1s will translate to improved dosing systems for other peptide classes. The peptide market as a whole is primed for sustained growth, both from novel entities and through developments in drug delivery systems. The winners will pair scientific innovation for both drug substance and drug product.

The approval of GLP-1 receptor agonists for obesity treatment by the early 2020s marked a significant turning point, opening new market opportunities beyond addressing only life-threatening medical conditions, considering these therapies resonated also with consumer lifestyles.

The market for these therapies expanded rapidly due to their benefits toward weight loss and cardiovascular diseases. This growth has placed supply chains and manufacturing capacity under significant pressure, and, in response, the FDA temporarily allowed certain compounding organizations to prepare these medications to help mitigate shortages. Billions of dollars are now being invested to expand manufacturing capacities closer to major markets.

At the same time, new products with improved formulations — such as long-acting versions and tablets instead of injectables — as well as generic alternatives, are being developed. This is creating significant business opportunities for large pharmaceutical and contract manufacturing companies beyond the United States and Europe.

Driven by the need to develop, characterize and release peptides like GLP-1 more quickly, suppliers have introduced fit-for-purpose analytical tools to address this, such as Bruker’s multi-nuclear inverse (MNI) cryoprobe for peptide analysis, which uniquely addresses the need for faster development of complex and biologically active molecules. Breakthroughs in pharma will continue to drive new GLP-1 therapies and analytical tools will remain pertinent in peptide discovery and development.

GLP-1 therapies are redefining expectations in chronic disease management. Originally developed for diabetes, their rapid expansion into obesity and cardiometabolic disease has dramatically shifted market demand. The recent agreement between Novo Nordisk and Eli Lilly to offer their GLP-1 weight-loss drugs at sharply reduced prices under Medicare is also poised to significantly broaden utilization.

While beneficial to patients and payers, longer-term and wide-scale use of GLP-1s is not without near-term financial risk: real-world data show high withdrawal rates due to side effects or adherence challenges, meaning payers may invest heavily without seeing durable benefits. Traditional reimbursement structures assume continuous therapy, yet GLP-1 discontinuation often occurs within months, leaving payers to absorb upfront costs without corresponding clinical benefit. A model is needed that better aligns upfront cost with sustained outcomes.

Octaviant Financial’s warranties can play a meaningful role in derisking GLP-1s for payers. Independent of manufacturers, these warranties can be designed to mitigate the risk of early GLP-1 withdrawal. By tying payment protection to therapy persistence, warranties introduce accountability, encourage better care coordination, and support sustainable access in this fast-evolving therapeutic class. As GLP-1s expand into broader populations and new indications, such innovations will be essential to balancing affordability with long-term value.

Next-generation GLP-1 therapies are shaping the market as drug makers seek to improve convenience and efficacy as well as address one of the most pressing limitations of GLP-1s; the loss of lean muscle mass. I expect we’ll see drug makers focus on reducing dosing frequency, expanding oral options and designing new molecules or multi-mechanism of action (multi-MOA) combinations that improve metabolic benefits and patient adherence rates. In tandem, we’ll see active exploration of pathways that maintain or rebuild muscle while preserving the metabolic advantages of existing therapies.

In the year ahead, we will also see an influx of capital intensify competition and accelerate the race to lead the next era of metabolic innovation. Drug makers are rapidly investigating how GLP-1–based therapies may translate into new applications beyond diabetes and obesity as others in the space are in investing in or acquiring smaller biotechs that are improving current GLP-1s or uncovering new therapeutic use cases.

GLP-1 receptor agonists have rapidly transformed the pharmaceutical landscape by becoming blockbuster therapies for obesity and metabolic disorders. Drugs like semaglutide and tirzepatide (Mounjaro, Ozempic) have delivered significant clinical outcomes in weight loss and glycaemic control. With global sales already exceeding billions of dollars, companies like Novo Nordisk and Eli Lilly have surged in market value, with no indication of a slow-down any time soon.

Looking ahead, the GLP-1 sector is poised for further disruption and innovation. Lilly and Novo have stolen a lead, but most other big pharma companies are following, with significant merger and acquisition activity in the sector. There are many next generation drugs in the pipeline, with significant focus on oral delivery. Additionally, there is significant interest in the application in broader indications like cardiovascular disease, sleep apnea, and even neurodegenerative conditions.

The success of GLP-1 therapies has also sparked renewed interest in peptides as a broad therapeutic modality. From a scientific point of view, the molecules are elegantly designed to counteract the historic disadvantages of peptide therapeutics. Such approaches are being applied to other areas, breeding a renaissance in the peptide modality, and hence, manufacturing technologies.

GLP-1 therapies have transformed treatment for diabetes and obesity, reflecting strong clinical outcomes and creating one of the fastest-growing segments in pharma. Analysts expect continued expansion into cardiovascular and metabolic indications, reshaping therapeutic strategies and investor priorities. Yet adoption faces a critical barrier: the near-exclusive reliance on parenteral administration, limiting patient convenience and adherence. With about two-thirds of adult patients reporting fear of needles, oral delivery is quickly emerging as a preferred form of administration, sparking demand for innovative solutions to solubility and bioavailability challenges.¹

Investing in bioavailability enhancement strategies, such as targeted release capsules, permeation enhancers and customized capsules, is vital to overcome these barriers. Lonza Capsugel is supporting partners through Global Pharmaceutical Solutions, combining advanced formulation expertise, bi-layered capsule manufacturing technology like Capsugel^® Enprotect^®, and collaborative innovation via Innovaform^® Accelerator. Our integrated network also offers transferring programs to our cGMP CDMO Tampa facility, enabling scale-up with speed and reliability. Such tailored capsule solutions can streamline the path to market for new formulations, including lipid-based GLP-1s, to enhance oral bioavailability of peptides through enzymatic protection and compatibility with other designed formulations.

As demand for GLP-1 therapies grows, success will depend on collaboration and innovation to make oral delivery effective, unlocking the full potential of this transformative class.

1. Alsbrooks, K and K Hoerauf. “Prevalence, causes, impacts, and management of needle phobia: An international survey of a general adult population.” PloS One. 17: e0276814 (2022).

GLP-1 receptor agonists are catalyzing a global transformation in chronic disease management, with profound implications for the pharmaceutical industry. Originally developed for type 2 diabetes, agents like semaglutide and tirzepatide have rapidly expanded into obesity treatment, demonstrating weight loss outcomes rivaling bariatric surgery. Real-world evidence (RWE) supports these findings, reinforcing their potential to reshape cardiometabolic care.

The United States remains the epicenter of GLP-1 innovation, with a surge in clinical trials leveraging decentralized and hybrid models to accelerate recruitment and improve diversity. Community-based trial networks are enhancing real-world applicability, while U.S. regulatory agility and payer influence continue to shape global access strategies.

Simultaneously, China and the broader Asia-Pacific (APAC) region — particularly India, South Korea, and Australia — are emerging as pivotal hubs. China’s vast treatment-naïve population streamlined NMPA pathways and growing biotech sector have made it a magnet for global sponsors. Cross-border partnerships are accelerating development and manufacturing scale across APAC markets.

As oral formulations, multi-agonist combinations, and expanded indications (e.g., sleep apnea, addiction) advance through pipelines, GLP-1 therapies are not only driving revenue growth — they are redefining the competitive landscape.

Strategic alignment across R&D, market access, and global partnerships will be critical to capturing long-term value in this rapidly evolving sector.

I worked on oral formulations of GLP-1 back in the early 2000s when I was at Emisphere. I led the teams that developed the science, process and manufacturing of the key ingredient in the oral drug delivery technology that resulted in the drug Rybelsus, a $4 billion oral form of Ozempic (Novo’s GLP-1). Rhybelsus is the world’s only orally delivered macromolecule, and Novo is likely to launch oral Wygovy soon. The need for weight loss products, especially oral formulations, is enormous. It is obvious that the GLP-1s and other compounds are distorting the pharmaceutical market in several ways. Governments are pressuring pharmaceutical companies to make price concessions.

Beyond our industry, these weight loss products are reshaping global and domestic politics. This month’s bidding war between Pfizer and Novo for the purchase of Metsera is another example of how products for obesity are reshaping pharma — in this case, M&A. I see many possibilities for the next generation of obesity products. In fact, Intensity uses a similar molecular delivery technology to that of Rhybelsus's; yet, while we have discovered compounds that could create proprietary oral products for obesity, our focus is to create new cancer treatments.