Alzheimer's Drug Market Analysis: Treatment and Outlook

Introduction

Alzheimer's disease leads to progressive and irreversible brain disorders that destroy a person's thinking skills and memory. The disease also affects an individual's ability to carry out everyday tasks. Symptoms of Alzheimer's appear in most people in their mid-60s, and it has become the most common cause of dementia among people aged 60 and older. Major symptoms include memory loss, an inability to comprehend simple language, and unpredictable behavioral problems. These symptoms occur because of a breakdown in the connections between neurons (nerve cells) in the brain. Because neurons transmit messages to different parts of the brain, organs, and muscles, affected individuals face significant challenges in neurological communication. In the United States, the FDA (Food and Drug Administration) has put various drugs through clinical trials for the treatment of Alzheimer's; however, only a small number have been approved.

The objective of this study is to analyze Alzheimer's disease as a therapeutic indication, including its market characteristics, currently approved treatments, and the technologies used in those treatments.

Market Characteristics: Demographics and Geography

This section discusses the market characteristics of Alzheimer's disease, including the age, sex, and number of affected persons. The analysis enhances understanding of the population suffering from Alzheimer's and the estimated costs of treatment.

In the United States, Alzheimer's affects over 5.2 million Americans, costing the healthcare system approximately $200 billion a year. In Europe, 6.4% of people aged 65 and older are affected by Alzheimer's. Globally, approximately 3.9% of people in their 60s are affected. In the United States, 1 in 10 adults aged 65 or older is affected by dementia, one of the hallmark symptoms of Alzheimer's (Qui, Kivipelto, & Strauss, 2009). Individuals whose families have a history of Alzheimer's are also more likely to develop the disease than those without such a family history. Additionally, Alzheimer's affects more women than men in the United States (Vina & Lloret, 2010). Typically, two-thirds of Americans suffering from dementia are women. Of the 5.2 million Americans aged 65 and above living with Alzheimer's, approximately 3.4 million (65%) are women and 1.8 million (35%) are men. A key reason more women are affected is that women generally live longer than men in the United States, making older age the greatest individual risk factor.

The Alzheimer's Association (2015) further demonstrates that level of formal education is a major factor in Alzheimer's prevalence. People with fewer years of formal education are at higher risk of developing Alzheimer's than those with more years of education. The underlying rationale is that education builds cognitive reserve, enabling individuals with more education to resist the onset of the disease more effectively.

Examining prevalence by racial and ethnic category reveals that non-Hispanic whites represent the largest absolute number of Americans living with Alzheimer's. However, when population proportions are considered, older Hispanics and African Americans are at higher risk of developing the disease than older non-Hispanic whites (Alzheimer's Association, 2016). Older African Americans are approximately twice as likely to develop Alzheimer's as non-Hispanic whites. Variations in lifestyle, health, and socioeconomic risk factors have been associated with these differences, as have genetic factors. Higher rates of poverty and lower levels of educational attainment are additional contributing factors among Hispanic and African American communities.

The number of older adults affected by Alzheimer's also varies across states. While every state and region in the United States is affected, states in the West and Southeast show higher rates of prevalence. Between 2015 and 2016, the three states with the highest numbers of older adults living with Alzheimer's were California (610,000), Florida (510,000), and New York (390,000) (Alzheimer's Association, 2016). States in the Southeast and western parts of the country are projected to continue recording large numbers of affected older adults through 2025.

Market Valuations and Projected Costs

An overview of the market for Alzheimer's treatment reveals significant opportunity for healthcare providers, given that 1 in 9 older adults in the United States is living with the disease. Healthcare providers collectively spent an estimated 17.7 billion hours with Alzheimer's patients in 2013, valued at over $220 billion. In 2015, more than 15 million caregivers delivered over 18.1 billion hours of unpaid healthcare services for Alzheimer's patients. Family caregivers, on average, spend over $5,000 a year to care for an affected family member.

In 2016, Alzheimer's disease cost the United States more than $236 billion, with a new diagnosis occurring approximately every 66 seconds. Unless effective health interventions are implemented, projections indicate that the cost could exceed $1 trillion by 2050, as more than 13.5 million Americans may be living with Alzheimer's by that time. These figures underscore the enormous and growing economic burden of Alzheimer's disease on the U.S. healthcare system and broader society.

Conclusion

This analysis reveals that Alzheimer's disease is one of the most significant health conditions affecting people aged 60 and older in the United States. At present, there is no cure for Alzheimer's. Nevertheless, Biogen is currently undergoing clinical trials, and it is hoped that this drug will help alleviate the suffering of Alzheimer's patients. Given the projected growth in both the affected population and associated costs, the demand for effective, approved therapeutics will only intensify in the coming decades.

References

Alzheimer's Association (2016). 2016 Alzheimer's disease facts and figures. Alzheimer's & Dementia, 12(4): 459–509.

Alzheimer's Association (2015). 2015 Alzheimer's disease facts and figures. Alzheimer's & Dementia, 11: 332–384.

Qui, C., Kivipelto, M., & Strauss, E. V. (2009). Epidemiology of Alzheimer's disease: occurrence, determinants, and strategies toward intervention. Dialogues in Clinical Neuroscience, 11(2): 111–128.

Reardon, S. (2015). Alzheimer antibody drugs show questionable potential. Nature Reviews Drug Discovery.

Vina, J., & Lloret, A. (2010). Why women have more Alzheimer's disease than men: gender and mitochondrial toxicity of amyloid-beta peptide. Journal of Alzheimer's Disease, 2: S527–33.

Whalen, J. (2014). Biogen notes progress with Alzheimer's drug. The Wall Street Journal.