Global Alzheimer’s Disease Drugs Market Analysis

Global Alzheimer’s Disease Drugs Market Executive Summary

The Global Alzheimer’s disease drugs market was valued at $15.42 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 $29.44 Bn in 2030. Alzheimer’s disease is characterized by the degeneration of nerve cells throughout the brain. It causes cognitive function loss, including memory, language, thinking, and behavior. Depression, memory impairment, loss of inhibitions, and issues with thinking and reasoning are common Alzheimer’s Disease symptoms. Physical checks, blood tests, brain imaging, and mental status and neuropsychological testing are typically used to diagnose it. Doctors give various drugs to ease symptoms based on the findings. Alzheimer’s Disease medications affect the functioning of neurotransmitters, which are molecules that transport signals between nerve cells in the brain.

In 2020, there will be approximately 55 million people living with dementia worldwide. This figure is expected to nearly double every 20 years, reaching 78 million in 2030 and 139 million in 2050. The majority of the increase will occur in underdeveloped countries. Presently, 60% of persons with dementia live in poor and middle-income nations, but this figure is expected to climb to 71% by 2050. China, India, and their south Asian and western Pacific neighbors are experiencing the largest growth in the older population.

Market Dynamics

Market Growth Drivers

One of the primary drivers of the Alzheimer’s Disease drugs market is the rapidly aging global population. According to a report by the United Nations, the number of people aged 60 years and older is expected to double by 2050, reaching 2.1 billion. As the risk of Alzheimer’s disease increases with age, this demographic shift is expected to drive demand for Alzheimer’s Disease drugs. The numbers of people with Alzheimer’s Disease is expected to rise significantly in the coming years due to aging populations and lifestyle changes.

According to a report by the Alzheimer’s Disease Association, an estimated 6.2 million Americans aged 65 and older are living with Alzheimer’s Disease in 2021, and this number is projected to reach 12.7 million by 2050. This increasing prevalence is expected to drive the growth of the Alzheimer’s Disease drugs market. The development of new technologies is driving innovation in the Alzheimer’s Disease drugs market. For example, the emergence of biomarkers and the use of artificial intelligence in drug development are leading to more effective and efficient drug discovery and development. Governments and non-profit organizations around the world are increasing their efforts to raise awareness about Alzheimer’s Disease and to support research into new treatments. For example, the U.S. National Plan to Address Alzheimer’s Disease aims to prevent and effectively treat Alzheimer’s Disease by 2025, driving investment in research and development.

Market Restraints

The success rate of Alzheimer’s Disease drug development remains low. According to a report by the Alzheimer’s Disease Drug Discovery Foundation, the failure rate for Alzheimer’s Disease drug candidates is approximately 99.6%, which leads to a significant financial burden on drug developers. Alzheimer’s Disease is a complex and multifactorial disease, which makes it challenging to develop effective treatments. The disease involves multiple pathological pathways, and a drug that targets one pathway may not be effective in treating the disease as a whole. Developing new drugs for Alzheimer’s Disease is a costly and time-consuming process. The long and complex clinical trial process, coupled with a high failure rate, drives up development costs and may discourage investment in research and development.

Competitive Landscape

Key Players

• Abbvie
• AstraZeneca
• Biogen
• Daiichi Sankyo Company
• Eisai Co.
• Eli Lilly and Company
• H. Lundbeck A/S
• Johnson and Johnson
• F. Hoffmann-La Roche AG
• Merck & Co.
• Novartis AG
• Ono Pharmaceutical Co.
• Pfizer
• Teva Pharmaceutical

Molecules and Brands

• Donepezil (Aricept) is approved to treat all stages of Alzheimer's disease. The recommended dosage is once a day
• Galantamine (Razadyne) is approved to treat mild to moderate stages of Alzheimer's disease. It's taken once a day or as an extended-release capsule twice a day.
• Rivastigmine (Exelon) is approved for mild to moderate Alzheimer's disease as well as mild-to-moderate dementia associated with Parkinson’s disease.
• Memantine (Namenda) is approved by the FDA for the treatment of moderate to severe Alzheimer's disease.
• Donepezil and memantine (Namzaric®) is approved for moderate-to-severe Alzheimer’s disease
• Aducanumab (Aduhelm™) is an intravenous infusion therapy approved for patients with mild cognitive impairment and mild dementia due to Alzheimer's disease
• Lecanemab (Leqembi™) for patients with mild Alzheimer's disease and mild cognitive impairment due to Alzheimer's disease (currently under review by the FDA)

Notable Deals

In May 2020, Allergan was completely acquired by AbbVie. Allergan had been developing a drug called Aducanumab for Alzheimer's disease, which showed promise in clinical trials. Following the acquisition, AbbVie continued to develop Aducanumab and submitted it for FDA approval in 2020.

Healthcare Policies and Regulatory Landscape

The regulatory landscape of the global Alzheimer’s Disease drugs market is complex and highly regulated. Regulatory bodies in different countries and regions have specific guidelines and requirements for the development, approval, and marketing of drugs for the treatment of Alzheimer’s Disease. But globally Alzheimer’s Disease International is a non-profit international federation of Alzheimer’s Disease and dementia groups worldwide. ADI has over 100 member organizations in more than 90 countries. It is estimated that there are currently 50 million people worldwide living with dementia, with nearly 10 million new cases each year. The global cost of dementia care is estimated to be over $1 Tn per year.

The organization has formal ties with the World Health Organization. ADI fights for those suffering from Alzheimer’s Disease and other forms of dementia. The organization works to make dementia a global, regional, and local priority by empowering Alzheimer’s Disease and dementia associations to advocate for dementia as a national priority, raise awareness, and provide care and support to people with dementia and their careers, as well as lobbying governments for better policy and encouraging investment and innovation in dementia research. The Alzheimer’s Disease Association also collaborates with other international organizations and initiatives focused on Alzheimer’s Disease and dementia, such as the World Health Organization (WHO) and the Global Alzheimer’s Disease and Dementia Action Alliance (GADAA).

Reimbursement Scenario

The reimbursement scenario for drugs used in the treatment of Alzheimer’s Disease varies between countries and regions. The availability and level of reimbursement for these drugs can have a significant impact on the adoption and market growth of these treatments. In the United States, Medicare, the federal health insurance program for people aged 65 and over, covers the cost of drugs used in the treatment of Alzheimer’s Disease. However, reimbursement levels and patient co-payments vary depending on the specific drug and the patient's insurance plan.

In the European Union (EU), reimbursement for drugs used in the treatment of Alzheimer’s Disease is determined by individual member states. In some countries, such as France and Germany, national health insurance programs cover the cost of Alzheimer’s Disease drugs, while in other countries, patients may be required to pay a portion of the cost.

In Japan, the cost of Alzheimer’s Disease drugs is covered by the national health insurance system. However, the reimbursement level for these drugs is relatively low compared to other countries, which can impact the adoption and use of these treatments.

In other regions, such as Asia and Latin America, reimbursement for drugs used in the treatment of Alzheimer’s Disease can vary widely depending on the specific country and healthcare system.