Oligonucleotide Synthesis Market: A Golden Opportunity in Precision Medicine's Supply Chain

The global oligonucleotide synthesis market is primed for explosive growth, with a projected 18.6% CAGR from 2025 to 2030, reaching a staggering $24.7 billion. This surge is fueled by the rapid adoption of RNA-based therapeutics—antisense oligonucleotides (ASOs), small interfering RNAs (siRNAs), and CRISPR-derived treatments—for previously untreatable conditions like spinal muscular atrophy (SMA), amyotrophic lateral sclerosis (ALS), and rare genetic disorders. Behind this revolution are companies like Thermo Fisher Scientific (TMO) and Twist Bioscience (TWST), whose innovations in scalable synthesis and delivery technologies are unlocking the potential of precision medicine.

The Engine of Growth: Therapeutic Dominance and Technological Breakthroughs

Oligonucleotide-based drugs now command the market's largest share, driven by FDA approvals for breakthrough therapies such as Biogen's Spinzara (SMA) and Tofersen (ALS). These drugs target genetic mutations at the molecular level, offering hope for patients with rare diseases. However, their success hinges on two critical enablers: scalable synthesis and target-specific delivery.

Scalability: The Manufacturing Bottleneck

Producing high-purity oligonucleotides at scale is no small feat. Impurity control, cost efficiency, and adherence to strict regulatory standards (e.g., cGMP) require advanced synthesis platforms. Thermo Fisher Scientific, a leader in life science tools, dominates this space through its Integrated DNA Technologies (IDT) subsidiary. In 2023, IDT opened a $100 million manufacturing facility in Iowa dedicated to cGMP-grade oligonucleotides for cell and gene therapies. This facility positions TMO to meet soaring demand for therapies like Zorevunersen (for Dravet syndrome) and Inotersen (hereditary transthyretin amyloidosis).

Twist Bioscience, meanwhile, leverages next-generation DNA synthesis to produce custom oligonucleotides at unprecedented speed and scale. Its Express Genes service, which delivers genes in 5–7 days, is a game-changer for drug developers. Twist's recent partnerships, such as its collaboration with Lilly on RNA-targeted therapies, underscore its role as a critical supplier to pharma giants.

Delivery: Overcoming the Final Frontier

Even the most precise oligonucleotide drug is ineffective if it cannot reach its target. Companies are tackling this challenge through innovations like cell-penetrating peptides and lipid nanoparticles (LNPs). While biopharma leaders like Moderna and BioNTech grab headlines for mRNA vaccines, behind the scenes, companies like Eurofins Scientific and Maravai LifeSciences (which acquired Molecular Assemblies' enzymatic synthesis tech) are refining delivery mechanisms.

For example, siRNA therapies like Alnylam's Onpattro rely on LNPs to deliver drugs to the liver, while ASOs targeting the brain—such as Ionis' Spinraza—depend on delivery systems that cross the blood-brain barrier. These advancements are expanding RNA therapeutics' addressable market into cancer and cardiovascular diseases (CVD), which account for over 30% of global deaths.

Why Invest Now?

The oligonucleotide synthesis market is not just a niche sector—it's the backbone of a $50 billion RNA therapeutics industry. Here's why investors should prioritize TMO and TWST:

1. Irreplaceable Position in the Supply Chain:
2. Thermo Fisher and Twist are the “silicon foundries” of biotech. Their technologies are essential for every step of RNA drug development, from research to commercialization.

3. High barriers to entry: Synthesis expertise, regulatory compliance, and capital intensity limit competition.

4. Pipeline Expansion into Massive Markets:

5. Cancer: siRNA therapies like Tirzepatide (for obesity and diabetes) and BCMA-targeted ASOs for multiple myeloma are advancing.

6. CVD: RNA drugs targeting PCSK9 (for cholesterol reduction) and inflammation pathways are in late-stage trials.

7. Valuation and Growth Trajectory:

8. Thermo Fisher's (TMO) revenue grew 12% YoY in 2024, with its genetic sciences segment (including IDT) expanding at a double-digit pace.
9. Twist (TWST) trades at a forward P/E of 30, lower than peers like Invitae (80x), despite its 30%+ revenue growth.

Risks and Considerations

• Regulatory Hurdles: New delivery technologies may face setbacks in clinical trials.
• Competition: Emerging players like DNA Script and Molecular Assemblies could disrupt synthesis paradigms.
• Dependence on Pharma Partnerships: If big pharma's pipelines stagnate, demand could soften.

Conclusion: A Must-Hold Sector for Long-Term Gains

The oligonucleotide synthesis market is a compound growth story—driven by both existing demand for rare disease therapies and emerging opportunities in CVD and oncology. Companies like Thermo Fisher and Twist are not just suppliers; they are enablers of the next wave of precision medicine. With an 18.6% CAGR and a critical role in saving lives, their stocks offer asymmetric upside.

Investment Recommendation:
- Buy Thermo Fisher (TMO) for its dominant market share and stable cash flows.
- Overweight Twist Bioscience (TWST) for its cutting-edge synthesis tech and pipeline exposure.
- Hold for 3–5 years to capture the full RNA therapeutics boom.

The era of RNA-based precision medicine is here. Those who invest in its supply chain will reap rewards for years to come.