Neuromodulation is one of the fastest growing medical device markets in the healthcare industry owing to rising geriatric population, growing incidence of neurological diseases and robust product pipeline. However, stringent regulations and negative social perception are expected to slow down the growth of the market over the next decade. As a result, investors and innovators have to tread cautiously, suggests leading data and analytics company GlobalData.
GlobalData estimates the global neuromodulation market, excluding non-implantable devices, to grow at a Compound Annual Growth Rate (CAGR) of 8% from $4.7bn in 2018 to $10.9bn by 2028.
Interestingly, the neuromodulation market hinges on a few experimental results that could halt the industry. In addition, exorbitant cost of treatment, dearth of trained healthcare personnel, stringent regulations and negative social perception are expected to slow down the growth of the market. For example, a neurological pacemaker is an invasive treatment that may be unappealing to many, even refractory patients.
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Hanuel Park, Medical Devices Analyst at GlobalData, says: "Regardless of these concerns, the market is rapidly growing and expanding into various therapeutic regimens globally. So that begs the question, where can investors make money in the neuromodulation market?"
Helius Medical Technologies is a non-invasive neuromodulation company, which has developed an externally stimulating device—PoNS—that does not require implantation. It is used to induce neuroplasticity during physiotherapy, occupational therapy and cognitive exercises.
Park adds: "The US-based company has a $314m market cap and is expected to generate global revenue upon FDA approval. With current meetings regarding the company's FDA pre-submission being positive, the company is expected to excel. To an investor, Helius possess all the important points: the company has a strong patent, it is involved in a fast-growing market and has a non-invasive proven technology."
Another private company of major interest is Saluda Medical. The Australian neuromodulation company uses a closed-loop system for neuro-stimulation. It has developed a unique biological amplifier within its system to record a patient's neurological stimulation. As a response to the patient's neurological stimulus, the recording is aligned and the system is programmed to automatically adjust and induce stimulation.
This removes the use of an external programmer for patients with chronic pain requiring spinal cord stimulation. Physicians in the neuromodulation sector believe that Saluda is going to dynamically change the market, and that the company will excel in all major countries.
Park concludes: "With continuous efforts by industry leaders and blooming new ventures, GlobalData expects the neuromodulation market to have great potential, for both investors and innovators. However, global market growth will only mature upon robust investigations of the device mechanism and long term effects. Technical and clinical evidence will be a necessity during this growth, for both investors and patients globally."