Peptide Manufacturing: Gen Z VCs and Hims & Hers Push for US-Based Supply Chains

Roxana Grunenwald, Yuva Krishnapillai, and Elia Ahmadi hosted a black-tie event on the SS Jeremiah O’Brien, a World War II Liberty ship. The trio, all venture capitalists from the biotech accelerator Haus Fund, gathered roughly 150 guests to discuss the state of the peptide industry. The venue was a deliberate nod to American industrial history, serving as a backdrop for their argument that the pharmaceutical supply chain should be centered in the United States.

Guests at the event received samples of four different products. One was a topical cream containing GHK-Cu, a common skincare ingredient. The other three were dissolvable sublingual strips from a startup called Afterglow. The effectiveness of sublingual peptide strips remains unclear. Attendees left the ship with stickers and hats that read “My Peptides Are Made in America.”

The timing of the event coincided with a recent interim policy decision by the US Department of Health and Human Services. The policy allows certain unapproved peptides to be compounded. FDA career scientists have not endorsed the move. At a public hearing in July, these scientists stated there was insufficient evidence to prove the safety or efficacy of the experimental peptides. Some industry experts warn that the decision could undermine the clinical trial framework by allowing telehealth providers and compounding pharmacies to bypass standard approval processes.

Ahmadi, one of the event organizers, expressed concern about the current reliance on foreign suppliers. He noted that Americans are often buying consumer peptides from gray-market sellers in China. He stated that consumers have little recourse if something goes wrong with these products. Ahmadi emphasized that the goal is not to criticize China, but to ensure America can produce its own medicines.

Krishnapillai viewed the HHS decision as a positive initial step. He argued that it allows compounding pharmacies to build a supply chain that adheres to US consumer safety laws. This development could provide the FDA with better visibility into the market, potentially leading to a new path for active pharmaceutical ingredient classification. Grunenwald added that if people are purchasing and taking these peptides, sometimes even injecting them, the products should be compounded, produced, and verified on American soil.

Grunenwald compared the situation to the semiconductor industry, which has recognized the risks of relying on China for critical minerals. She argued that the bio industry has not yet had the same realization about its reliance on Chinese APIs. She acknowledged that onshoring production would require substantial funding and time, but she maintained that it is achievable.

Hims & Hers, a major telehealth brand, is also moving into the American peptide space. Dr. Anant Vinjamoori, the company’s chief medical officer, stated that the firm recently purchased an API manufacturing facility in California. The company intends to use this facility to provide US-made API and product through the entire supply chain. The company announced a service called Peptides Plus, which will offer Sermorelin, Glutathione, B12, NAD+, and L-carnitine at launch. BPC-157 and TB-500 are scheduled to follow when allowed.

Vinjamoori noted that while some items in the Peptides Plus lineup, such as vitamin B12 and NAD+, are not peptides, the move allows for direct oversight of the manufacturing process. He cited past inconsistencies among compounding pharmacies as a reason for the investment. When asked about pricing for the new US-made products, Vinjamoori said the company would share details in due time. American-made peptides will likely be more expensive due to the cost of building an end-to-end domestic supply chain. The HHS decision is an interim policy, and its long-term impact remains uncertain as the political landscape shifts ahead of midterm elections.