U.S. Alzheimer’s Drugs Market Size, Share & COVID-19 Impact Analysis, By Drug Class (Cholinesterase Inhibitors, NMDA Receptor Antagonist, Combination Drugs, and Others), By Application (Disease Progression and Symptom Management) By Distribution Channel (Hospital Pharmacy, Retail Pharmacy & Drug Stores, and Online Pharmacy), and Country Forecast, 2023-2030

The U.S. Alzheimer’s drugs market size was worth USD 1.62 billion in 2022 and is projected to grow at a CAGR of 5.5% during the forecast period. 

Alzheimer’s disease is the most commonly occurring type of dementia and affected around 6.7 million U.S. residents in 2023. It is a progressive disorder which initiates with mild memory loss and leads to the loss of the ability to carry on a conversation and other daily functions.

Alzheimer’s drugs refer to the pharmaceutical compounds used to mitigate, slow, and manage the symptoms of the disease. The advent of new therapeutic agents for Alzheimer’s disease has the potential to lessen the burden of illness on a vast number of patients, their family, and society.

Furthermore, the country has favorable reimbursement policies for Alzheimer’s drugs, which, in turn, increased the adoption of these products among end-users. The U.S. Medicare health plan offers details of plans to collect patient data as a condition for reimbursement for the new drug Leqembi. Additionally, as per the announcement by the CMS, Medicare covers new drugs that receive traditional approval from the U.S. FDA when a beneficiary is diagnosed with mild cognitive impairment or Alzheimer’s.

The COVID-19 pandemic negatively impacted the Alzheimer’s drugs market in the U.S. due to several factors, such as supply chain disruption, disruption in clinical trials, and others in the country. The country also witnessed a significant impact on the diagnosis and treatment of the disease. However, with the ease of lockdown restrictions, the market witnessed strong growth in 2021 and returned to pre-pandemic growth in 2022.

U.S. Alzheimer’s Drugs Market Trends

Shift Toward Development of Advance technologies for Early Detection of the Disease Identified as a Significant Market Trend

In recent years, the country has witnessed a shift toward the use of advanced technologies for diagnosing the disease as well as developing effective therapies for treating the individuals. For instance, the development of digital neurophysiological biomarkers has resulted in its increasing use for precise detection of Alzheimer's in each patient and screening for the early phase of this disease.

Furthermore, the increasing use of digital tools in clinical trials is another trend identified in the market space. The use of these tools results in accelerated clinical trials, improved engagement of diverse populations, and lower cost of conducting clinical trials. Owing to this, the research community is increasingly embracing the use of digital tools in Alzheimer’s research.

U.S. Alzheimer’s Drugs Market Growth Factors

Rising Awareness Regarding the Disease and its Treatment to Drive Market Growth

In the U.S., the growing patient population of Alzheimer’s is a serious public health concern. Around 6.5 million Americans of all ages were diagnosed with Alzheimer's disease in 2022. With this high number, government bodies of different states and healthcare organizations are undertaking various initiatives to increase awareness regarding the disease and available treatment options.

• For instance, as per the data published by the Florida Department of Health (DOH) in September 2020, World Alzheimer's Month is the international campaign run by Alzheimer's Disease International every September. This campaign aimed to increase awareness about the disease and reduce stigma and lack of information regarding dementia.

Thus, the growing awareness regarding the disease and treatment is further driving the diagnosis rates, which in turn is driving the demand for Alzheimer’s drugs utilized in the treatment of the disease.

According to Alzheimer’s disease Facts and Figures, 2023, among the total U.S. population, around 1 in 9 individuals (10.8%) aged 65 and older has Alzheimer’s dementia.

RESTRAINING FACTORS

High Cost of Alzheimer’s Drugs to Impede Growth Prospects

Some major factor hindering the U.S. Alzheimer’s drugs market growth is the total cost of treatment and care associated with the disease. Healthcare expenditures and long-term care costs for people with Alzheimer’s or other dementias are substantial, with the overall treatment and care being costly. The lifetime individual cost estimate of caring for someone with the condition is USD 357,297. On a larger scale, Alzheimer’s and other dementia costs reached USD 355.00 billion in 2021.

• For instance, as per the data released by the Alzheimer’s Association in April 2023, total payments in 2023 for all individuals with the condition or other dementias are estimated at USD 345.00 billion. Medicare and Medicaid are expected to cover USD 222.00 billion of the total health care and long-term care payments for people with Alzheimer’s or other dementias.

U.S. Alzheimer’s Drugs Market Segmentation Analysis

By Drug Class Analysis

On the basis of drug class, the market is categorized into cholinesterase inhibitors, NMDA receptor antagonist, combination drugs, and others.

The cholinesterase inhibitors segment accounted for the largest U.S. Alzheimer’s drugs market share in 2022. This is primarily due to the majority of approved products in the U.S. falling under this segment.

Whereas, the others segment is projected to grow at a significant compound annual growth rate in the coming years. The increasing number of U.S. FDA approvals by the regulatory body in the U.S. is driving the segment's growth.

• For instance, in June 2021, the U.S. FDA approved ADUHELM as an anti-amyloid beta antibody treatment to control disease progression.

By Application Analysis

On the basis of application, the market is segmented into disease progression and symptom management.

The symptom management segment held the dominating share of the U.S. Alzheimer’s drugs market. Factors contributing to the dominance of the segment include the fact that currently there is no approved drug that cures the diseases. However, the majority of the available Alzheimer’s drugs are used to manage the disease symptoms. This has resulted in higher revenue generation by this segment.

On the other hand, the disease progression segment accounted for a very small share of the market. As there are only two recently approved products available in the U.S. market as disease modifying therapies, the segment is expected to witness comparatively slower growth in the forecast period.

By Distribution Channel Analysis

Based on distribution channel, the market can be trifurcated into hospital pharmacy, retail pharmacy & drug stores, and online pharmacy.

In 2022, the hospital pharmacy segment captured the dominant U.S. Alzheimer’s drugs market share. This can be attributed to the increasing prevalence of the disease in the country, as well as increasing procurement of prescription therapeutics through this distribution channel.

In addition, the online distribution channel segment is anticipated to witness the fastest growth over the forecast period. The surging customer preference for online purchase coupled with easy availability of products through this channel is expected to propel segment growth.

List of Key Companies in U.S. Alzheimer’s Drugs Market

The U.S. Alzheimer’s drugs market space is semi-consolidated, with the presence of several international as well as domestic generic drug manufacturers. Key players such as Biogen Inc., Eisai CO. LTD, and Novartis AG, held a considerable share of the market in 2022. A broad pipeline of innovative therapies, along with the strong brand presence of these companies in the market are factors contributing to their market dominance.

Some other prominent players in the Alzheimer’s drugs market in the U.S. include H. Lundbeck A/S, Merz Pharma, Otsuka Pharmaceutical Co., Ltd., and others. These companies are focusing on expanding their market presence through various strategies such as partnerships and collaborations, launching clinical trials and others.

• For instance, in March 2020, H. Lundbeck A/S, and The Critical Path Institute (C-Path) announced collaboration for the development of advanced drug development tools for Alzheimer’s disease. 

LIST OF KEY COMPANIES PROFILED:

• EISAI CO., LTD., (Japan)


• Novartis AG (Switzerland)


• Biogen Inc. (U.S.)


• H. Lundbeck A/S (Denmark)


• Otsuka Pharmaceutical Co., Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Halozyme Therapeutics, Inc. and Acumen Pharmaceuticals announced a collaboration and non-exclusive license agreement for the ENHANZE technology in Alzheimer's Disease.


• January 2023: H. Lundbeck A/S and Otsuka Pharmaceutical Co., Ltd. announced that the U.S. FDA has accepted supplemental New Drug Application (sNDA) for brexpiprazole that can be used to treat agitation associated with Alzheimer’s dementia.


• March 2021: The National Institutes of Health (NIH) announced the launch of Alzheimer’s disease program (AMP AD 2.0); the next version of the Accelerating Medicines Partnership (AMP). This is aimed at advancement in precision medicine research for Alzheimer’s disease.

REPORT COVERAGE

The market report provides a comprehensive and focused analysis of the market. It focuses on key market segments such as drug class, application, and distribution channel. Additionally, it includes several insights on innovative product launches and key industry developments, market dynamics, pipeline analysis, and the impact of COVID-19 on the market. The market analysis report also provides the competition analysis of the key companies at the U.S. level.

Report Scope & Segmentation