Technologies that harness the power of the mind are coming of age

We highlight the potentially profound impact of GLP-1s beyond weight loss and new neuropsychiatric opportunities to address addiction and mental health problems with an estimated economic cost of USD 0.5 trillion just in the US. We think new markets for brain-computer interfaces (BCIs), which can help overcome mobility problems, could be worth USD 17-56 billion. These developments can be transformative for patients in the near and long term, contributing to the creation of further, as yet unformed, markets and investment opportunities.

Controlling the mind: GLP-1 could do even more; new markets in neuroscience

GLP-1 binds in the brain and the gut, with emerging clinical evidence that GLP-1 agonists can help manage addictive behaviour. If 1 million obese people with alcohol use disorder (AUD) in the US can be helped, we estimate total alcohol volume could drop in the low single digits and around USD 8 billion per annum in economic cost could be saved. Repurposing of old drugs, previously thought to have limited uses to treat conditions such as post-traumatic stress disorder (PTSD), could present multiple multi-billion-dollar markets. There have been an estimated 300+ deals in the space since 2020, and possible first US approval for MDMA to treat PTSD is around the corner. PTSD affects around 13m people in the US, with an estimated economic burden of USD 0.23 trillion, and we think the market for a new drug in the space could be worth USD 5 billion.

Old drugs as new disruptors

Mental health and parts of non-degenerative neurology have been a notoriously difficult field in which to develop successful new pharmacological interventions. Renewed interest in the potential for a range of compounds that act on the brain has meant regulatory approval of cannabinoids, new indications for ketamine (initially approved in the US in 1970) and a raft of clinical studies for mood-altering compounds such as MDMA, psilocybin and DMT.

Controlled by the mind: Brain computer interfaces (BCIs)

Implantable BCIs can help patients with serious mobility deficits, creating a new market worth an estimated USD 17-56 billion, with potentially wider applications such as stroke rehabilitation as the technology develops. Privately listed BCI developers are moving into late-stage trials, and we think one could make it to the commercial market in the next five years. The potential beyond patients with very high unmet needs has yet to be discerned, and a move into wider use likely depends on the development of non-implantable solutions.