150 investors gather on a Liberty ship to fund domestic peptide production

The US Department of Health and Human Services recently issued an interim policy allowing certain unapproved peptides to be compounded, a move that has triggered a push to centralize the supply chain within the United States.

Three Gen Z venture capitalists from the biotech accelerator Haus Fund organized a gathering for approximately 150 guests aboard the SS Jeremiah O’Brien, a World War II Liberty ship. Roxana Grunenwald, Yuva Krishnapillai, and Elia Ahmadi used the event to promote domestic manufacturing. Attendees left with stickers and hats bearing the slogan “My Peptides Are Made in America.”

The HHS decision is controversial among FDA career scientists who cited a lack of safety evidence. However, industry experts view it as a pathway to a more regulated market. Krishnapillai described the move as a first step in solving the gray market problem. He argued that allowing compounding pharmacies to build supply chains under US consumer safety laws will give the FDA better oversight.

The push addresses concerns about the gray market for peptides, which relies heavily on imports from China. According to the US Pharmacopeia, 51 percent of US prescription active pharmaceutical ingredients come from India and the European Union, while China accounts for 10 percent. Research chemicals sold online are often called Chinese peptides because most originate from manufacturers there. Ahmadi stated that American buyers have little recourse if issues arise with imported products, emphasizing that the goal is to ensure America can produce its own medicines.

Grunenwald noted that the bio industry has not yet faced the same risks as the semiconductor sector regarding reliance on Chinese materials. She suggested that the industry needs to recognize these vulnerabilities earlier. The organizers believe the new policy creates an opportunity for greater accountability for American consumers.

Major telehealth companies are also entering the space. Hims & Hers recently announced a service called Peptides Plus. The company purchased an API manufacturing facility in California last year to provide US-made products through its entire supply chain. Chief Medical Officer Dr. Anant Vinjamoori said the investment allows for direct oversight of production, addressing previous inconsistencies among compounding pharmacies.

The new service plans to offer compounds such as Sermorelin, Glutathione, B12, NAD+, and L-carnitine. BPC-157 and TB-500 will follow when allowable. CEO Andrew Dudum noted that the company spent years building this US-based manufacturing capability. While some of these substances are not strictly peptides, the company aims to use its domestic infrastructure to ensure quality.