Canada Alzheimer’s Disease Drugs Market Analysis

Canada Alzheimer’s Disease Drugs Market Executive Summary

The Canada Alzheimer’s disease drugs market was valued at $1.23 Bn in 2022 and is estimated to expand at a Compound Annual Growth Rate (CAGR) of 8.42% from 2022 to 2030 and will reach $2.35 Bn in 2030. Alzheimer's disease (AD) is a neurological illness that often begins slowly and progresses over time. It is the cause of 60-70% of dementia cases. The most common initial symptom is trouble recalling recent events. Language impairments, disorientation (including easily getting lost), mood changes, loss of motivation, self-neglect, and behavioral concerns can all occur as the disease progresses. As a person's health deteriorates, they frequently retreat from family and society. Body functions gradually deteriorate, eventually leading to death. Although the rate of progression varies, the average life expectancy after diagnosis is three to nine years.

According to the Alzheimer Society of Canada (ASC), an estimated 564,000 Canadians are currently living with dementia, and this number is expected to increase to 937,000 by 2031. The organization estimates that there are also more than 1 Mn Canadians who provide care for someone with dementia. The ASC's programs and services reach an estimated 1.3 Mn Canadians each year.

Market Dynamics

Market Growth Drivers

Alzheimer's disease is most typically diagnosed in those over the age of 65, and Canada's population is aging. The need for Alzheimer's medications is predicted to rise as the population ages. Alzheimer's disease and its symptoms are becoming more widely known, which is contributing to an increase in diagnosis and treatment. This pattern is predicted to continue as more people become aware of the disease and seek treatment. The Canadian government is funding in research and development of new Alzheimer's disease treatments. This investment is expected to hasten the development and market availability of new medications. Given technological breakthroughs, there is an increasing prospect of discovering new medications that can halt or even reverse the progression of Alzheimer's disease. This is projected to drive future growth in the Alzheimer's medications industry. Canada's overall healthcare spending is rising, which is likely to fuel demand for Alzheimer's medications. Given the rising frequency of Alzheimer's disease, there is a greater demand for financing for the research and development of novel treatments, resulting in market expansion.

Market Restraints

Alzheimer's medications can be highly expensive in Canada, making it difficult for people to purchase them. This may limit some patients access to treatment. While there are medications available to treat the symptoms of Alzheimer's disease, there is presently no cure. Also, some of the existing medications may be ineffective in some people. In recent years, there has been a paucity of significant new drug discoveries in the Alzheimer's pharmaceuticals market. This may limit patients' treatment options and slow the market's growth. Alzheimer's disease may be stigmatized, making it difficult for patients and their families to seek medical assistance. Also, there may be a lack of knowledge regarding the disease, which can cause delays in diagnosis and treatment.

Competitive Landscape

Key Players

• Pfizer
• Biogen
• Eli Lilly and Company
• Novartis International AG
• Merck & Co
• AstraZeneca
• Roche Holding AG
• Johnson & Johnson
• AbbVie
• Sanofi

Healthcare Policies and Regulatory Landscape

The Alzheimer Society of Canada (ASC) is a non-profit organization that provides support and education to people living with Alzheimer's disease and other dementias, as well as their families and caregivers. The main of ASC is to support people living with dementia, advance research on the disease, and promote public awareness and understanding of dementia. It offers a range of services to people living with dementia, including education and training, support groups, and assistance with accessing community resources. The organization also advocates for policy and program changes to improve the lives of people living with dementia. The ASC is funded through donations from individuals, corporations, and foundations, as well as through government grants. In the 2020-2021 fiscal year, the organization had a total revenue of approximately $40.5 million.

Reimbursement Scenario

Canadian Agency for Drugs and Technologies in Health (CADTH) is a non-profit organization that is funded by federal, provincial, and territorial governments (except Quebec). Its primary function is to give evidence and advice to Canadian healthcare decision-makers regarding medication financing decisions and the appropriate use of health technologies. To commercialize a medication in Canada, the manufacturer must obtain a Notice of Compliance (NOC) or a Notice of Compliance with Conditions (NOC/c) from Health Canada. The Patented Medication Pricing Review Board (PMPRB) must be notified of its sale price upon the first sale anywhere in the country, regardless of regulatory status, and must be kept up to date on other ongoing reporting requirements.

Canada's ten provinces and three territories are in charge of providing and funding healthcare. Provinces vary in their ability to implement recommendations and may have distinct demographics, insurance structures, or agencies covering specific disease areas (e.g., British Columbia's Centre for Excellence in HIV/AIDS or Cancer Care Ontario), as well as formulary eligibility, resulting in distinct reimbursement environments. Even provinces with comparable drug plans may take different approaches to list a particular therapeutic area because of cumulative changes in priority over time or disparities in affordability or HTA procedures.

Public programs primarily cover seniors, welfare users, and other groups (e.g., HIV patients) who face considerable financial hardship due to drug expenses, however, this varies by province, with some provinces providing universal coverage through a combination of public and private insurance. Throughout Canada, all inpatient medications are covered. Also, there are nationally sponsored and provided prescription plans for first nations (non-insured health benefits), veterans, prison convicts, armed forces employees, and federal police.

Private payers, who account for around two-thirds of working Canadians, are covered by private insurance for medications and other healthcare procedures. In Canada, there are 22 private payers.