Approximately ten to thirty percent of patients with depression do not respond to drug treatments commonly used for the disorder, and this has spurred a search for alternatives. According to Kalorama Information's report "Electrical and Magnetic Neurostimulation," electrode devices that stimulate nerves have emerged as a solution and there is competition among notable device companies to provide the most effective stimulator.
Between 15 and 20 million people in the U.S. alone suffer from depression and Kalorama estimates the patient population corresponds to a potential market value of $16 billion annually for all cases of depression and a $4-5 billion potential market for drug refractory cases. This potential has attracted the notice of pharmaceutical, medical device and microelectronics companies. Although the device route is limited by its cost, which at the current time exceeds that of drug therapy, the cost differential could be reimbursed through savings in antidepressant drug costs.
"Depression treatment has made strides with modern pharmaceuticals, but there is a significant patient population that is refractory to treatment," said Mary Ann Crandall, Kalorama Information's analyst. "This should encourage regulatory agencies and insurance companies to become more receptive to newer approaches, which would further increase demand for these devices."