A new, potentially multibillion-dollar market is emerging in the global pharmaceutical industry for drugs that target the orexin system in the brain. The first drug in this new class has already received approval from the U.S. regulatory agency for the treatment of narcolepsy, while pharmaceutical companies are beginning to explore the same mechanism for other sleep disorders, attention disorders, cognitive disorders, and neurological diseases.
On August 11, 2026, *The Economist* described these developments as a potential “Ozempic moment” for the brain—drawing an analogy with GLP-1 drugs, which were initially developed primarily to treat diabetes but later radically transformed the obesity treatment market and began to be investigated for a whole range of other diseases.
In the case of brain disorders, the orexin system could become such a universal mechanism.
A key milestone occurred on August 5, 2026, when the U.S. Food and Drug Administration (FDA) approved Takeda’s drug Orzeyful (oveporexton) for adults with type 1 narcolepsy.
This is the first approved drug that directly targets the biological mechanism of this disease.
Type 1 narcolepsy is associated with the death of brain cells that produce orexin—a neuropeptide that regulates wakefulness, sleep, and muscle tone. When orexin is deficient, the brain has a harder time maintaining a stable state of wakefulness and distinguishing between sleep and wakefulness.
Traditional therapies have primarily targeted individual symptoms—for example, by promoting alertness or reducing cataplexy. Oveporexton works differently: the drug activates the orexin receptor OX2R, thereby partially restoring the missing signal.
This is precisely what makes this new approach particularly interesting for the pharmaceutical industry.
The FDA’s decision was based, in particular, on two 12-week randomized, double-blind, placebo-controlled trials involving 273 adult patients with type 1 narcolepsy.
Patients who received oveporestone showed improved ability to remain alert during the day, as well as reduced subjective sleepiness and frequency of cataplexy episodes. Improvements were also observed in other symptoms of the disease.
However, the drug is not without side effects. The FDA lists insomnia, frequent urination, urinary urgency, and increased salivation among the most common side effects.
So, for now, we’re not talking about a “brain-boosting pill,” but rather a medication with a specific medical indication and known risks.
However, the pharmaceutical industry’s interest extends far beyond type 1 narcolepsy.
A good illustration of the scale of these expectations is Eli Lilly’s deal with the British company Centessa Pharmaceuticals.
On June 24, 2026, Lilly completed its acquisition of Centessa, gaining a portfolio of experimental OX2R receptor agonists.
When announcing the deal on March 31, Lilly estimated the initial purchase price at approximately $6.3 billion, with up to an additional $1.5 billion potentially payable depending on the achievement of certain regulatory milestones. Thus, the potential value of the deal reaches about $7.8 billion.
Centessa’s lead drug—cleminorexton, formerly known as ORX750—has already completed a Phase 2a trial in patients with Type 1 and Type 2 narcolepsy and idiopathic hypersomnia. Lilly notes that other drugs in this platform could potentially be studied for a broader range of neurological, neurodegenerative, and neuropsychiatric disorders.
In fact, one of the world’s largest pharmaceutical companies paid billions of dollars for the opportunity to secure a position in a new class of drugs even before most of its potential applications had been proven.
Takeda and Lilly are not the only players in the market.
Alkermes is developing its own OX2R agonist, alixorexton. By 2026, it will already be in Phase 3 trials for narcolepsy types 1 and 2 and in Phase 2 trials for idiopathic hypersomnia.
At the same time, the company is beginning to explore other molecules in this class. ALKS 7290 is in the early stages of development for the treatment of attention-deficit/hyperactivity disorder, and ALKS 4510 is being studied as a potential treatment for fatigue associated with multiple sclerosis and Parkinson’s disease. For now, both programs are still in the early clinical stages.
It is precisely the potential to extend the application of a single biological mechanism to numerous diseases that explains the comparison with GLP-1.
Orexin was discovered relatively recently—in the late 1990s. It is produced by a small group of neurons in the hypothalamus, but their signals spread throughout numerous areas of the brain.
The orexin system is involved in more than just maintaining alertness. It is linked to attention, motivation, energy balance, mood, and other functions of the central nervous system.
Takeda explicitly views orexin as a system linked to sleep and wakefulness, attention, mood, metabolism, and respiration.
This means that pharmacological intervention targeting orexin receptors could theoretically be beneficial not only in cases where there is a direct deficiency of this neuropeptide.
Following the approval of oveporexton, *Nature Reviews Drug Discovery* also noted that the pharmaceutical industry is already exploring broader indications for drugs in this class.
The history of GLP-1 has shown pharmaceutical companies just how valuable a mechanism can be that targets not a single symptom but a fundamental system of the body.
GLP-1 drugs have expanded from treating diabetes to a global market for obesity therapy and are now being studied for a multitude of comorbidities.
Orexin-based drugs may follow a similar trajectory: a rare and well-studied disease serves as the first proof of concept for a new mechanism, after which developers begin testing it for much more common conditions.
This is precisely why the FDA’s approval of oveporexton is important not only for patients with narcolepsy.
It marked the first time a major regulatory agency confirmed that restoring a specific neurochemical signal can directly influence the fundamental mechanism of a brain disorder.
The comparison is interesting, but it’s important not to take it literally.
Proven efficacy currently exists primarily for type 1 narcolepsy. For type 2 narcolepsy and idiopathic hypersomnia, other drugs are in the clinical trial phase, while the use of orexin agonists for ADHD, Parkinson’s disease, multiple sclerosis, and other conditions is still in much earlier stages.
There is no evidence that these drugs will become universal cognitive stimulants or will be able to treat a wide range of mental and neurodegenerative disorders.
Therefore, the main significance of these developments lies not in the emergence of an “Ozempic for the brain” as a single miracle drug, but in the emergence of a new pharmacological platform.
And if further research confirms the ability to safely regulate wakefulness, attention, and other brain functions through the orexin system, this class of drugs could indeed become one of the most important new areas in global neurology and psychiatry.
The combination of the first FDA approval, several competing clinical programs, and multibillion-dollar investments from the largest pharmaceutical companies indicates that the industry is already placing a serious bet on this mechanism.
The pharmaceutical company “JSC Galichpharm” (Lviv) produced 3.934 million packages of finished pharmaceutical products in the second quarter of 2026, worth approximately 981.424 million UAH.
According to the company’s disclosure in the National Securities and Stock Market Commission (NSSMC) disclosure system, the average cost per package of medicines is 213.18 UAH for injectables, 52.11 UAH for infusions, 117.25 UAH for liquids and syrups, and 52.6 UAH for tablets.
Galichpharm’s total revenue for the second quarter of 2026 amounted to 354.394 million UAH. Total exports reached 115.4 million UAH, or 48.3% of total sales.
Currently, the company supplies products to the Ukrainian market and exports them to Kazakhstan, Uzbekistan, Latvia, Australia, and other countries.
As previously reported, “Galichpharm” (Lviv) produced 22.098 million packages of medicines in 2025 and sold finished products worth 1.774 billion UAH. The company then reported a net loss of 1.151 billion UAH, compared to a net profit of 13.705 million UAH in 2024 (-39% compared to 2023).
As previously reported, in May 2025, the Commercial Court of Lviv Oblast opened bankruptcy proceedings against the pharmaceutical manufacturer JSC “Galichpharm” based on claims filed by LLC “Sky-Development” in the amount of 479.262 million UAH. On April 21, 2025, Sky-Development LLC acquired from JSC “Bank Finansy i Kredit” the rights to claims against JSC “Galichpharm” under loan agreements and security agreements.
The investment company “Sky-Development” won an open auction organized by the Deposit Guarantee Fund for Individuals and acquired the claims of the insolvent JSC “Bank ‘Finansy i Kredit’” under ten loan agreements with leading Ukrainian pharmaceutical companies: JSC “Galichpharm” and JSC “Kyivmedpreparat.” According to Sky Development, the total amount of its claims exceeds 3.5 billion UAH.
For their part, “Kyivmedpreparat” and “Galichpharm” stated that the information disseminated by Sky Development Investment Company is “inaccurate, manipulative, and shows signs of a deliberate attempt to discredit the companies’ operations.” In particular, both companies denied having “multi-billion debts” to “Sky Development.” The pharmaceutical companies characterized the statements by “Sky Development” LLC as “an attempt to illegally and artificially create non-existent creditor debt for a possible future hostile takeover of the companies.”
EXPORTS, Galichpharm, MANUFACTURING, MEDICINES, PHARMACEUTICALS
Pharmaceutical products, medical goods and equipment in Ukraine cost an average of 2.9% less in July 2026 than a year earlier, while outpatient medical services increased in price by 13.3%, according to data from the State Statistics Service.
Overall, the healthcare category rose in price by only 2.2% over the year, significantly slower than the general consumer inflation rate of 7.7%. Prices in this group increased by 0.6% in July.
Pharmaceutical products, medical goods and equipment became 0.9% cheaper from the beginning of 2026. In July, however, this category rose in price by 0.6% compared with June.
Outpatient services, by contrast, increased in price by 0.8% over the month, by 8.3% from the beginning of the year and by 13.3% year-on-year. On average, they cost 13.6% more in January–July than during the same period of 2025.
Thus, a noticeable gap can be observed within the medical segment between the price dynamics of medical goods and those of services themselves.
Ukrainian pharmaceutical manufacturers expect the government to facilitate the launch of tools for 2D verification of medicines in Ukraine.
As Petro Bagriy, president of the Association of Ukrainian Drug Manufacturers (AULU), told the “Interfax-Ukraine” news agency, this specifically involves facilitating pharmaceutical manufacturers’ access to software that will allow them to verify pharmaceutical products using a 2D code compatible with European systems, as well as the introduction of certain tax incentives for the purchase of the necessary equipment.
Bagriy noted that these issues were discussed during the most recent working meeting of members of the newly established “National Organization for the Verification of Medicines” (NOVLM).
“There is a provision in the new law on medicines stipulating that 2D coding of medicines must be operational in Ukraine by 2028. Such verification is one of the tools for combating counterfeit medicines. Ukraine is integrating into the EU, where this is a mandatory requirement, as only medicines verified by a 2D code are permitted for sale within the EU. Moreover, when exporting their medicines, Ukrainian pharmaceutical manufacturers label their products with 2D codes. But this is expensive; it requires significant investment in equipment and the renovation of packaging facilities,” he said.
The president of the Association of Pharmaceutical Manufacturers of Ukraine (AVLU) believes that not only pharmaceutical manufacturers but also distributors, pharmacies, and healthcare facilities that purchase medicines should participate in the launch of the system.
“We want to build a completely transparent system that will fully satisfy all participants, discriminate against no one, and provide equal rights and opportunities. In addition, it is important for the system to be fully integrated into the EU. We are discussing the possibility of engaging a software developer who will support the 2D verification—specifically, the one who developed it for EU countries—so that our product is fully integrated into all EU markets,” he emphasized.
Bagriy noted that, as a result, the QR codes used in Ukraine will be accepted in Europe, which will help promote Ukrainian medicines in European markets and also simplify the circulation of imported medicines in Ukraine.
“For example, ‘Farmaka,’ which will apply its code to its products, will find it easier to sell them in European pharmacies, and ‘Sanofi’ products will be easier to verify in Ukraine,” explained the president of the AULU.
He noted that “there is an initiative to exempt equipment imported for the implementation of the 2D-coding program for medicines from import duties and VAT.”
In addition, Bagriy reported that the Ministry of Health “is helping to negotiate a preferential price for the software in order to facilitate the financing of this project.”
“We have made a request, and the Minister of Health has promised us support so that we can gain access to software that has already been developed in the EU and be able to use it at a discounted price,” he said.
The president of the Association of Pharmaceutical Companies of Ukraine noted that the pilot system is scheduled to launch on January 1, 2027, and the system is expected to be fully operational as of January 1, 2028.
As previously reported, five pharmaceutical industry associations have registered the “National Organization for the Verification of Medicines” (NOVLM) to prevent and combat the circulation of counterfeit medicines in Ukraine in cooperation with European counterparts and the European Organization for the Verification of Medicines.
The “Chervona Zirka” Chemical and Pharmaceutical Plant (Kharkiv) produced goods worth 546.883 M UAH in 2025 and sold goods worth 526.744 M UAH.
According to a report published on the company’s website, the cost of goods sold in 2025 amounted to 213.733 million UAH.
The company reported that 96.4% of its output consisted of pharmaceutical products in the form of tablets, capsules, ointments, and tinctures.
Meanwhile, production of perfumes and cosmetics, which accounted for 2.9% of total sales, amounted to 15.121 million UAH.
“Despite the difficult times our country is facing, the company operated as usual in two shifts, with production capacity utilized at 67%. Currently, the company has increased its production and sales volumes compared to the pre-war period. Sales of finished products were primarily conducted on a credit basis, sometimes with payment terms of up to 60 days or on a prepayment basis. Sales volumes for the reporting year amounted to approximately 44 million UAH per month. “The share of the Ukrainian market is up to 2%; there were no exports in 2025,” the company’s report states.
“Chervona Zirka Chemical and Pharmaceutical Plant is a Ukrainian manufacturer of pharmaceuticals, therapeutic cosmetics, and dietary supplements.
According to data from the OpenDataBot system, the company’s net profit for 2024 was 24.063 million UAH, which is 64% more than in 2023.
The company’s ultimate beneficiary is Olena Galkina.
KHARKIV, MANUFACTURING, MEDICATION, PHARMACEUTICALS, Червона зірка
The biopharmaceutical company Biopharma plans to launch a plant in Arad, Romania, in late 2027, with an initial investment of EUR85 million, company president Kostyantyn Yefimenko told the Interfax-Ukraine news agency.
“We have already completed construction of the building and will finish installing all utility lines by September 1. We have already ordered the filling line. By the end of June, we will have contracted for the reactor equipment and all other process equipment. We will begin operations in December 2027,” Yefimenko said.
The initial investment in the plant in Arad is EUR85 million; the Romanian project as a whole will consist of four phases of varying sizes. Total investment in the plants in Uzhhorod and Arad is approximately $500 million.
He noted that the company’s development is not focused on a single project.
“Bila Tserkva is our flagship plant. We’re not shifting our focus; we’re developing all of them—Uzhhorod and Arad—and we’ll continue to build in Latin America,” Yefimenko said.
As previously reported, Biopharma plans to launch the first phase of its plant for the production of pharmaceutical products and immunobiological preparations in Uzhhorod in September 2026, which will provide a full cycle of blood plasma processing. The company has already invested EUR67 million in construction; the total cost of the first phase is EUR75 million. According to the plan, the volume of blood plasma-derived drug production in Uzhhorod will be twice that of production in Bila Tserkva, amounting to up to 1.5 million liters of blood plasma per year; the project in Romania is twice as large.
During the “Industrial Evolution: Manufacturing Drives the Economy” forum in Bila Tserkva, Yefimenko also announced that Biopharma had registered its albumin product in Brazil.
Biopharma exports its products to dozens of countries and plans to expand its presence in Europe, the Middle East, and Latin America while continuing to increase its production capacity.
