Medtronic: Alzheimer’s Pump Technology Could Drive Shares Higher Into 2014

Medtronic (MDT) recently announced that it is looking for pharmaceutical industry partners to couple its pump technology with Alzheimer’s medicines. The technology is said to be an effective complement to medicines battling Alzheimer’s, as it will be pushed directly into the brain. The company said that it is confident that the product will have wide acceptance in the market. It further added that less than 1% of intravenous drugs have the ability to cross the blood-brain barrier. Medtronic’s drug concept promises to deliver the drugs straight into the brain, which would yield better concentrations.

Based on the latest figures from Alzheimer’s Disease Research, there are nearly 36 million people who are suffering from Alzheimer’s disease or other dementia. The organization expects these figures to grow to nearly 66 million by 2030 if breakthroughs are not discovered. Furthermore, it is expected to reach 115 million by 2050. Total payments for healthcare and long-term care are projected to increase from $200 billion in 2012 to $1.1 trillion in 2050. This implies a compounded growth of 11.84% over the next 38 years. For the U.S. figures alone, there are estimated 5.4 million suffering from the disease. This would likely increase to 15 million by 2050.

Presently, there is no known cure for Alzheimer’s disease and current medicines only improve the patient’s symptoms rather than treating the underlying condition. There are few companies who have taken a shot at developing a drug targeted to treat Alzheimer’s disease. Having said this, this niche should provide significant upside for any major pharmaceutical companies given the demand and supply gap. To continue reading, click here.

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