Dementia Drugs Market

Market Overview

The global dementia drugs market size was valued at USD 13.40 billion in 2021. It is projected to reach USD 26.68 billion by 2030, growing at a CAGR of 7.95% during the forecast period (2022-2030). 

Dementia is a term used to define symptoms that collectively interfere with daily functioning, such as memory, thinking, and social skills. Dementia is a syndrome characterized by memory, cognitive, and behavioral changes that worsen over time and interfere with a person's ability to carry out daily activities when brain damage occurs, either from an injury or a degenerative disease. The primary drivers of the market growth for dementia medications are the introduction of cutting-edge medical technologies and therapies and increased government funding and awareness initiatives.

Market Dynamics

Global Dementia Drugs Market Drivers

Increasing Prevalence of Target Diseases

The market is anticipated to expand due to the rising prevalence of target diseases such as Alzheimer's disease, Parkinson's disease dementia, Lewy body dementia, and vascular dementia, as well as the rising elderly population. The prevalence of dementia was 5.1% in Spain, according to a study by Anna Ponjoan et al. published in the Clinical Epidemiology Journal in March 2019. In the standard instances, dementia lasts an average of 3.77 years, and women are more likely than males to develop dementia, and the risk rises with age. Women had a much more significant age-related increase in dementia prevalence than males.

Additionally, dementia was found to occur in 7.1% of people worldwide. The need for dementia medications to treat the condition is anticipated to rise as the burden of dementia increases. Chinese seniors are becoming more likely to develop dementia, especially those with low levels of education. The prevalence of Lewy body dementia and Parkinson's disease dementia (PDD) was found to be 4.6% and 9.7%, respectively, in the United Kingdom, according to a study by Joseph P. M. Kane et al., which was published in the Alzheimer's Research and Therapy Journal in February 2018. As a result, the factors above are anticipated to fuel the global dementia drugs market expansion during the projected period.

Global Dementia Drugs Market Restraints

High Rates of Drug Failure at Approval Stages

Dementia treatments have advanced significantly thanks to the billions of dollars invested in R&D. Despite the substantial additional expenditure on these treatments and the expanding pipeline, there have been more failures and setbacks than successes. The growing number of disease-modifying medications still undergoing clinical trials implies that the industry is placing a high priority on creating dementia treatments. These studies' very high failure rates are shown by the fact that the fraction of disease-modifying medicines is falling in the latter phases.

For instance, in 2017, Merck stopped the Verubecestat late-stage trial for mild to moderate Alzheimer's dementia after a panel of independent experts concluded that there was little likelihood of detecting a beneficial clinical benefit. Thus, Pfizer Inc. stopped conducting neuroscience research in 2018.

Global Dementia Drugs Market Opportunities

Introduction of Innovative Technologies and Drugs

The market's growth is significantly driven by the introduction of inventive medications and approaches to lessen the burden of dementia. Additionally, the market is partly expanding due to the rising number of research and development initiatives to create new drugs with promising therapeutic objectives. For instance, there were more than 800 ongoing interventional clinical studies for treating dementia throughout various stages of development worldwide as of March 29, 2021, according to the National Clinical Trials (NCT) Registry. The market players are also concentrating on novel strategies, like amyloid protein, to create efficient treatments.

Additionally, the US Food and Drug Administration (FDA) announced in 2020 that Biogen Inc.'s Aducanumab, a possible treatment for Alzheimer's disease, had been approved for a priority review procedure. The medication targets amyloid, a protein that amasses in the brains of those with early-stage Alzheimer's patients. Therefore, the above factors will likely fuel market expansion during the forecast period.

Regional Analysis

The global dementia drugs market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

Europe Dominates the Global Market

Europe is the most significant shareholder in the global dementia drugs market and is expected to grow at a CAGR of 8.05% during the forecast period. The market for dementia medications in Germany is expanding as a result of increased R&D efforts, the rising prevalence of target disorders, the rising elderly population, and supportive pharmaceutical legislation. Along with having a high number of healthcare businesses, the nation also has numerous government funding and awareness-raising initiatives. The dementia drugs market is expanding quickly because the United Kingdom has a robust healthcare system and an expanding pharmaceutical sector. The market is becoming more attractive because of the rising prevalence of target disorders and the introduction of cutting-edge technology and medications.

North America is expected to grow at a CAGR of 7.95%, during the forecast period. The United States is anticipated to dominate the global market for dementia drugs throughout the forecast period as a result of the increasing number of clinical studies, funding for dementia-related research and development, the presence of significant market players, the growing geriatric population, and the rising prevalence of target disorders like Alzheimer's and Parkinson's disease. Domestic enterprises are using a variety of techniques, including product launches, mergers and acquisitions, and research and development, to improve their market positions. For instance, Eli Lilly, a pharmaceutical corporation with headquarters in Indianapolis, provided encouraging findings from a Phase 2 study conducted on the Alzheimer's disease medicine donanemab.

Asia-Pacific is anticipated to increase significantly over the forecast period due to the rising prevalence of various varieties of dementia, with Parkinson's and Alzheimer's being the most frequent, as well as the diseases' growing awareness and the rising number of drug launches. According to Alzheimer's disease International, some dementia-friendly communities have been established in China, including the first "Dementia Caregiver Support Group," which was started in 2000, and "Memory Health in the Community," started in 2010, both of which intended to increase community awareness of dementia and its prevention. Additionally, according to the report "World Ageing Population" (2019), around 15.9% of the total population was aged 65 years and above, which is expected to increase to 22.8% by 2050. These factors are anticipated to drive market growth over the forecast period.

The Gulf Cooperation Council (GCC) region comprises Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates, and Oman. The World Ageing Report predicts that in Saudi Arabia, the proportion of people 65 and older will rise from 1.169 million (3.4%) in 2019 to 7.681 million (17.2%) in 2050. The aging population, which is more sensitive to diseases like dementia and cognitive impairments, is anticipated to grow in the upcoming years, ultimately fueling market expansion.

Segmental Analysis

The global market is segmented by indication and drug class.

Based on indication, the global market is bifurcated into Lewy Body Dementia, Alzheimer's Disease, Vascular Dementia, and others.

The vascular dementia segment is the highest contributor to the market and is expected to grow at a CAGR of 8.45% during the forecast period. Vascular dementia is brain damage due to inadequate blood supply to the brain's neurons. Several other causes and risk factors for vascular dementia include aging, smoking, obesity, abnormal heart rhythms, high cholesterol, high blood pressure, atherosclerosis, and diabetes. People most frequently develop vascular dementia after having a stroke or other ischemic event. About 5-10% of people with dementia exhibit symptoms of vascular dementia alone, according to a study paper published in Alzheimer's and Dementia, 2020. However, it also occurs more frequently as a mixed pathology linked to Alzheimer's.

In Lewy Body, Alpha-synuclein, a protein abnormally deposited in the brain, is a disorder known as dementia. These deposits, known as Lewy bodies, interfere with the brain's neurotransmitters and are one of the most prevalent causes of dementia. These changes can create thinking, movement, behavior, and mood issues. Dementia with Lewy Bodies (DLB) is the third most frequent cause of dementia after Alzheimer's disease and vascular dementia, and 5–10% of people with dementia have just DLB, according to the Alzheimer's Association 2019 report.

The main driver fueling the examined segment's expansion over the projected period is the rising burden of the aging population. Many Parkinson's patients have deteriorated thinking and reasoning at least a year following their diagnosis. World Population Prospects estimates that by 2050, one in six individuals will be over 65 years old, up from one in eleven. Since Parkinson's disease affects many people, the market under study is anticipated to grow strongly over the following years.

According to estimates, 60 to 80 percent of dementia cases are caused by Alzheimer's. According to the Alzheimer's Association: Alzheimer's Disease Facts and Figures, Alzheimer's Dementia 2021 report, recent extensive autopsy studies demonstrate that more than half of people with Alzheimer's dementia also have the brain changes (pathology) of one or more other causes of dementia, such as cerebrovascular disease or Lewy body disease. Acuranumab has only been studied in patients with Mild Cognitive Impairment (MCI) or early Alzheimer's dementia and is the only medication among these that may potentially decrease the course of Alzheimer's.

Based on drug class, the global market is bifurcated into MAO-B inhibitors, glutamate, and cholinesterase inhibitors.

The cholinesterase inhibitors segment owns the highest market share and is expected to grow at a CAGR of 8.10% during the forecast period. Drugs called cholinesterase inhibitors or acetylcholinesterase inhibitors stop the body from breaking down acetylcholine. Lower levels of the chemical messenger result from damaged or destroyed acetylcholine-producing cells in the dementia-affected brain. In order to slow down the breakdown of acetylcholine, cholinesterase inhibitors work by decreasing the activity of cholinesterases. These medications are frequently advised for those with mild to moderate signs of Alzheimer's disease. Additionally, some individuals with Lewy-Body Dementia, Vascular Dementia, or more advanced Alzheimer's Disease have found them helpful. Their usefulness in other types of dementia, such as frontotemporal dementia, remains unproven. The three drugs are all accessible as pills, and rivastigmine is offered in daily skin patches.

Dopamine inactivation is caused by MAO-B oxidases, also known as monoamine oxidases, which are inhibited by MAO-B inhibitors. An enzyme called MAO is present in all of the body's cells. This enzyme is crucial for breaking neurotransmitters, or chemical messengers, like dopamine, in the brain. MAO inhibitors (MAOI) stop this enzyme from working. Levodopa is another medication used to treat Parkinson's, and Azilect is one of the approved MAO-B inhibitors since it helps raise and maintain dopamine levels in the brain. Parkinson's disease is treated using selegiline hydrochloride, which is found in Zelapar and is a selective MAO-B inhibitor. It can either be taken on its own or combined with levodopa.

In animals, glutamate is one of the critical central neurotransmitters. Because enzymes cannot break down extracellular glutamate, it builds up at synapses and is primarily taken up by excitatory amino acid transporters (EAATs). Ionotropic glutamate receptors (iGluRs), a family of G-protein-coupled receptors, and a subclass of metabolic glutamate receptors (mGluRs) bind to and activate ligand-gated ion channels, are how glutamate exerts its physiological effects. High extracellular glutamate concentrations in overactive glutamate receptors have excitotoxic effects on the central nervous system. Therefore, prompt clearance of glutamate from the synaptic cleft is essential. Numerous neurodegenerative illnesses, including Parkinson's disease, include glutamate-mediated excitotoxicity.

Recent Developments

• March 2022- The FDA granted Corium, Inc. permission to commercialize ADLARITY (donepezil transdermal system) as a medication for those with mild, moderate, or severe dementia associated with Alzheimer's.
• April 2022- NovaMedica's acute treatments for Alzheimer's disease-related dementia were developed and registered, which consist of a new combination of the molecules donepezil and dementia drugs memantine. The drug is registered under the name MIOREOL and is one of the first such combinations to appear on the Russian market and the markets of the EAEU and Europe.