Oral peptide medications are having a moment. FDA approvals in recent months include the first peptide pills for obesity and plaque psoriasis, each offering an alternative to injectable drugs. Jonathan Wang, CEO of Pinnacle Medicines, acknowledges the progress, but says it’s just the beginning. Pinnacle is among the companies aiming to expand the reach of oral peptides and the startup recently revealed $89 million new funding as it prepares to bring several drugs into the clinic.
One of the challenges of developing peptides in pill form is that when administered orally, the amount of drug available to produce a therapeutic effect is very small. To circumvent this low oral bioavailability, pharmaceutical companies have developed peptide drugs in injectable formulations, such as Novo Nordisk’s semaglutide products for type 2 diabetes and obesity.
There are a few peptide medications available in pill form. Since 2019, Novo Nordisk has marketed Rybelsus, an oral formulation of semaglutide for type 2 diabetes. Last December, the The FDA has approved another version of oral semaglutide for obesity, the company’s Wegovy pill. And last month, the FDA approved Johnson & Johnson’s Icotyde, an oral peptide developed for plaque psoriasis. Both manufacturers allow oral administration of these products by formulating them with ingredients that improve the absorption of the peptide from the digestive system. Meanwhile, startup Vivtex, whose partners include Novo Nordisk, has technology that identifies how combinations of these inactive ingredients, called excipients, can improve the gastrointestinal absorption of peptides.
Pinnacle’s drugs also incorporate excipients, but its research focuses on the peptide itself, Wang said. The startup has developed a proprietary technology platform that leverages artificial intelligence and physics-based modeling to design peptides with better properties.
“We can, from the start, design molecules with optimized potency, better stability, better permeability, and other characteristics. [pharmacokinetic] properties,” Wang said. “We have a peptide that can be administered orally and achieves the efficacy and safety that biologics can achieve, as well as the convenience as well as scalability that is more like small molecules.”
Pinnacle, which splits its operations between Shanghai and Doylestown, Pennsylvania, pursues validated targets, either from an approved biologic drug or from biologic drugs in mid- to late-stage clinical development. Therapeutic areas of interest include obesity and cardiovascular disease. Pinnacle’s core program is poised to begin testing asthma and chronic obstructive pulmonary disease in humans by the end of this year, Wang said.
Three more Pinnacle programs are expected to enter the clinic in 2027. The pipeline lists programs in development for inflammatory bowel disease and atopic dermatitis. Wang declined to disclose the specific targets of these drugs, but said each of the company’s assets has the potential to become a first-in-class oral peptide.
Pinnacle was created in 2024 by scientific co-founders Chengzao Sun, the startup’s chief scientific officer, and Sandeep Somani, its chief technology officer. Both had extensive experience at large pharmaceutical companies where their work included oral peptide R&D. Pinnacle was incubated by OrbiMed, which provided initial funding for the startup. Wang is also a senior managing director at OrbiMed. The $89 million Series B funding was jointly led by LAV and Foresite Capital. Other participants in the round include Quan Capital, Hankang Capital, RA Capital Management, Logos Capital as well as previous investors including OrbiMed. In total, Pinnacle said it has raised $134 million to date.
Wang said the new funding should bring Pinnacle to at least clinical proof of concept for its lead programs. The capital will also support additional peptide R&D. This work includes bispecific peptides, drugs that hit two different targets. Wang noted that bispecific antibody drugs bring new treatment options for certain diseases, and which Pinnacle aims to follow.
“We want to take some of this biological work and incorporate it into our oral peptides,” Wang said.
Photo of Pinnacle Medicines
