This is no better than other answers, but is one more way to get the job done in a file without spaces (see comments). I find that I often need one-liners to dig through lists in text files without the extra step of using separate script files.
for word in $(cat peptides.txt); do echo $word; done
This format allows me to put it all in one command-line. Change the "echo $word" portion to whatever you want and you can issue multiple commands separated by semicolons. The following example uses the file's contents as arguments into two other scripts you may have written.
for word in $(cat peptides.txt); do cmd_a.sh $word; cmd_b.py $word; done
Or if you intend to use this like a stream editor (learn sed) you can dump the output to another file as follows.
for word in $(cat peptides.txt); do cmd_a.sh $word; cmd_b.py $word; done > outfile.txt
I've used these as written above because I have used text files where I've created them with one word per line. (See comments) If you have spaces that you don't want splitting your words/lines, it gets a little uglier, but the same command still works as follows:
OLDIFS=$IFS; IFS=$'\n'; for line in $(cat peptides.txt); do cmd_a.sh $line; cmd_b.py $line; done > outfile.txt; IFS=$OLDIFS
This just tells the shell to split on newlines only, not spaces, then returns the environment back to what it was previously. At this point, you may want to consider putting it all into a shell script rather than squeezing it all into a single line, though.
Best of luck!