Peptides shouldn't be China's next fentanyl moment
This photo provided by the U.S. Drug Enforcement Administration shows pills containing fentanyl which were seized. Credit: AP/Uncredited
China has demonstrated time and again that when its leaders make something a priority, they usually get results. A decision to ban all forms of the powerful drug fentanyl seven years ago under US pressure showed how quickly authorities can mobilize against an illicit trade. They should now bring that same attention to the export of unregulated peptides.
These compounds are short chains of amino acids that work as chemical messengers that activate or inhibit various biological functions in the body. While some peptides such as insulin and the active ingredient in Ozempic are legal and widely prescribed, there’s a vast array of injectables that have become wildly popular among Western biohackers looking to build bigger muscles, get smarter or look better.
But there are two main issues with products like BPC-157 and TB-500, which purportedly help speed recovery, and melanotan, a synthetic tanning agent. First, the molecules have not been adequately tested for safety or efficacy in humans. Some were banned three years ago by the US Food and Drug Administration over those concerns. Misuse of peptides can upset the body’s hormonal and metabolic balance, increasing the risk of serious side effects including organ damage. Secondly, the proliferation of a booming gray market means they’re often sold by online merchants without meeting basic quality standards.
China, with its vast chemical and pharmaceutical industries, appears to be the main source - creating public-health risks that demand Beijing’s urgent attention. The country has about 1,000 online sellers targeting buyers abroad, according to the Financial Times. While no one should equate unlicensed peptides with fentanyl, the synthetic opioid responsible for the bulk of nearly 40,000 overdose deaths in the US last year, there are obvious parallels.
Both compounds can be manufactured cheaply at scale and shipped across borders in small parcels, making them difficult for regulators to track. And like fentanyl, peptides are being marketed widely over social media or e-commerce sites to overseas buyers while remaining off-limits at home due to tighter regulations.
The clandestine nature of the business has fueled a boom in the use of digital assets by first-time users. Because banks and credit card processors generally eschew transactions involving unlicensed substances, buyers have made cryptocurrency the backbone of the industry. Crypto payments to peptide vendors jumped 700% to $32 million in the first quarter of this year, analytics firm Chainalysis wrote in June.
Some of the biggest vendors are Chinese chemical manufacturers that were, until recently, mainly supplying the building blocks of fentanyl and amphetamines to drug cartels, according to blockchain records. This on-chain peptide economy is expected to exceed $100 million annually, driven by endorsements from celebrities like podcaster Joe Rogan and actress Jennifer Aniston. Industry insiders estimate the unregulated market is worth between $1 billion to $3 billion, compared to tens of billions of dollars for fentanyl.
The trade is strikingly one-sided. Unauthorized peptides attract little interest in China. “Looksmaxxing,” an online subculture focused on maximizing one’s physical attractiveness that can escalate to extreme measures including using peptides to change skintones or body composition, has failed to gain traction. Disenchanted Gen Z have instead responded to a slowing economy and high jobless rates with silent rebellion in the form of ugly work outfits or vows to “lie flat.” Self-improvement is not on the agenda.
The country also has highly reputable peptide manufacturers. Companies such as WuXi AppTec Co. have benefited from soaring demand for the ingredients used in blockbuster GLP-1 diabetes and weight-loss drugs, including the active ingredient in Eli Lilly & Co.’s obesity treatment Zepbound.
It may seem like Beijing has little incentive to crack down on a shadow business that barely affects its own citizens, but that view is shortsighted. Similar to fentanyl, the gray peptide market creates reputational, regulatory and geopolitical risks. Singapore has declared it illegal to sell the unregulated products, while Australia has warned of serious side effects including liver damage and severe allergic reactions requiring hospitalization. The US is bucking the trend, with outside advisers to the FDA recommending relaxing restrictions on some peptides last month.
More than most countries, China understands the national trauma that can accompany the unchecked spread of potentially dangerous substances. That history has shaped decades of tough anti-drug policies at home. Allowing it to become the world’s main source of unregulated peptides would sit uneasily with that legacy.
It has something else to protect: an ambition to become a global pharmaceutical leader. World-class manufacturers shouldn’t have their reputations tarnished by a gray market flourishing alongside them. Bringing unauthorized exports under tighter control would only reinforce that goal.
This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Juliana Liu is a columnist for Bloomberg Opinion’s Asia team, covering corporate strategy and management in the region. She was previously CNN’s senior business editor for Asia, and a correspondent at BBC News and Reuters.
