Alzheimer’s Therapeutics Market Assessment, By Drug Class [Cholinesterase Inhibitors, NMDA Receptor Antagonist, Manufactured Combination, Others], By Distribution Channel [Hospital Pharmacies, Retail Pharmacies, E-Pharmacies], By Region, Opportunities and

Alzheimer’s Therapeutics Market Assessment, By Drug Class [Cholinesterase Inhibitors, NMDA Receptor Antagonist, Manufactured Combination, Others], By Distribution Channel [Hospital Pharmacies, Retail Pharmacies, E-Pharmacies], By Region, Opportunities and Forecast, 2017-2031F

Global Alzheimer’s therapeutics market is projected to witness a CAGR of 11.90% during the forecast period 2024-2031, growing from USD 5.16 billion in 2023 to USD 12.68 billion in 2031. With growing cases of diseases, increasing government initiatives, and rising research and development investments, the Alzheimer’s therapeutics market is forecast to see rapid growth during the forecast period.

The Alzheimer's therapeutics market is growing dynamically, impelled by several factors and current events. Improving healthcare and pharmaceuticals, allied with the ever-increasing burden of Alzheimer's disease (AD), accelerates the demand for effective treatment options. The demographic change of aging populations around the world, along with increased awareness of the disease, are other major factors driving the growth. Recent innovations and investments in new drug formulations and diagnostic tools are other principal reasons for the growth. For instance, in July 2024, Eli Lilly and Company received approval from the U.S. Food and Drug Administration for Kinsula (donanemab-azbt) designed for treating Early Symptomatic Alzheimer's Disease. This adds to the previously approved treatments: Leqembi (lecanemab) approved in 2023 and Aduhelm (aducanumab) which was approved in 2021. These recent FDA approvals prove that the regulatory agencies are involved in advancing the options for Alzheimer's treatment. Approval of these new drugs marks increased interest in addressing AD and is fueling the expansion of the Alzheimer’s therapeutics market. Apart from the advantages that new therapies could bring to patients, once they hit the market, they increase investment and competition in the field of Alzheimer's therapeutics, further driving growth and innovation.

Rising Prevalence of Aging Population and Alzheimer’s Disease

Alzheimer's disease has been increasing in magnitude over the last decades and continues to be projected to increase in the future. Higher life expectancy in high-income countries exposes more of the aging population to the risk of developing AD. The growing prevalence underpins rising demand for effective treatments and global health initiatives to offset these health disparities. As the cases of AD continue to increase, so will the need for current and new treatments. This increase also brings the potential for Alzheimer’s therapeutics market growth in countries with growing elderly populations and growing healthcare systems. AD currently ranks as the seventh leading cause of public health problems in the world. As per the data published by the Alzheimer’s Association, in 2023, there were around 87 million people suffering from Alzheimer's at an early stage of the disease, while 32 million have a mild to severe form of this illness. As the cases of AD are going to increase at the same pace in the foreseeable future, it will lead to a greater market opportunity for Alzheimer's therapeutics.

Rising Investments in Research and Development Drive Market Growth

Investments in Alzheimer's therapeutics have been growing worldwide through multiple initiatives and funding strategies placed by stakeholders to fast-track the sector. This ranges from increasing funds for R&D to regulatory frameworks that ease business operations and production-based initiative investments to build resilience in manufacturing and supply chains, among others. For instance, this rise in investment in research and development enables the identification of new treatments against Alzheimer's. For example, in July 2024, Asceneuron SA, a Merck KGaA spin-out, headquartered in Switzerland, raised USD 100 million to develop a drug for treating AD. The company is working on developing therapies directed against proteins involved in the progression of Alzheimer's disease and other neurodegenerative disorders. Moreover, in May 2024, Coya Therapeutics, Inc., a clinical trial phase company, was granted a USD 5 million strategic investment by the Alzheimer's Drug Discovery Foundation to fund its research. The company aims to develop biologics for the treatment of AD. Increasing investments not only pave the way for innovations but also increase the pipeline of drugs with potential treatments for Alzheimer's disease, thus boosting the overall Alzheimer’s therapeutics market.

Dominance of Cholinesterase Inhibitors in the Alzheimer’s Therapeutics Market

Cholinesterase inhibitor drugs have been proven to treat cognitive symptoms, as well as extended clinical validation and regulatory approval across the board. Donepezil, rivastigmine, and galantamine are drugs that increase acetylcholine levels in the brain, therefore enhancing memory and improving general cognitive function in patients suffering from Alzheimer's. Their long-standing presence and vast clinical experience add to their strong level of trust with healthcare providers and patients. Besides, such drugs are included in the standard treatment schedules for Alzheimer's, thereby further cementing their place in the Alzheimer’s therapeutics market. The cost-effectiveness of these drugs, as compared to new and expensive treatments, and the continuous research being done for their enhancement in effectiveness and reduction of side effects will continue to give them a clean sweep in the Alzheimer’s therapeutics market. For instance, in July 2024, the FDA approved ALPHA-1062, a new-generation Acetylcholinesterase Inhibitor-based treatment. This drug is designed to address cognitive decline and other mild-to-moderate symptoms of Alzheimer’s disease.

North America Dominates Alzheimer’s Therapeutics Market Share

North America is expected to dominate the Alzheimer's therapeutics market. The rising geriatric population, coupled with high drug accessibility and significant government investments to improve the quality of diagnosis and care, are the major factors contributing to market growth. For example, nearly 6.9 million American people aged 65 years and older currently live with Alzheimer's disease, and this figure is expected to grow to 13.8 million by 2060. The other thing is that North America is advanced in R&D and is one of the leaders in providing outstanding progress in the treatment of Alzheimer's disease. Apart from these, other reasons include better health care policies, better economic conditions, and innumerable strategic partnerships, such as Eisai Co., Ltd., in March 2024, announced an investment of up to USD 15 million in C2N Diagnostics LLC to simplify early diagnosis of Alzheimer's disease to provide due service to its patients.

Future Market Scenario (2024-2031F)

Advances in diagnostic technologies are enabling the scope for earlier and more accurate diagnosis of Alzheimer's disease. Better tools for diagnosing the disease at its early stage can enhance the likelihood of effective treatment options and maximize the effectiveness of treatment. These improvements in diagnosis can increase the demand for Alzheimer's therapeutics, hence impacting the Alzheimer’s therapeutics market. For example, researchers at the University of Cambridge have developed cutting-edge artificial intelligence models that not only predict Alzheimer's disease but are more accurate than the current clinical tests.

The rising cases of Alzheimer's, particularly among the elderly population, are expected to increase the demand for therapeutic solutions. According to scientific estimates, cases of Alzheimer's will surge to approximately 152.8 million by 2050 from the 51.62 million reported in 2019. Such a rise in cases highlights the need for more effective and advanced treatments in the future. Also, ongoing research into neurological diseases will further set the trends for the future.

Key Players Landscape and Outlook

Leading market players in the global Alzheimer’s therapeutics market focus on R&D investments and new product launches to cater to the growing demand for effective treatments. The Alzheimer’s therapeutics market landscape is highly competitive, featuring several players at the local and global levels. Companies are adopting different strategies like fastening regulatory approvals and improving supply chain and production.

In March 2024, Bristol-Myers Squibb Company completed the acquisition of Karuna Therapeutics, Inc. for USD 14 million. This acquisition will expand the neuroscience portfolio of Bristol-Myers Squibb Company. Karuna Therapeutic is developing KarXT, which is targeted at treating psychosis, a major therapeutic focus for Alzheimer's disease. This acquisition can position BMS as a leader in Alzheimer's therapeutics.

AbbVie Inc. completed the acquisition of Cerevel Therapeutics in December 2023 in a deal worth USD 8.7 billion. This transaction is intended to increase AbbVie's neuroscience pipeline by adding clinical-stage therapies developed by Cerevel to AbbVie's neurosciences products that are currently in development or have been launched. With an innovative approach to neuroscience, the company will be able to expand its novel therapies into more neurological conditions in patients through AbbVie's deep experience in developing and commercializing global medicines.