Neurodegenerative Diseases Drugs Market Set for Strong Growth Through 2032
Pharmaceutical companies are strategically redirecting their research and development focus to align with the increasing demand for biologics, immunomodulators, and regenerative treatment platforms. At the same time, government investment, payer engagement, and cross-border research partnerships are expanding market potential. With this momentum, the neurodegenerative diseases drugs market is rapidly evolving into one of the most lucrative segments in global neurology.
Market Drivers: Innovation in Diagnosis and Early-Stage Intervention
A critical driver for market expansion is the growing emphasis on early diagnosis. Healthcare systems are increasingly investing in PET imaging, cerebrospinal fluid (CSF) analysis, and emerging blood-based biomarkers to detect early signs of neurodegeneration. The approval of breakthrough drugs like lecanemab for early-stage Alzheimer’s has catalyzed this shift. As a result, pharmaceutical pipelines are now prioritizing drugs that can be administered during preclinical or mild cognitive impairment phases.
This trend was highlighted by Eli Lilly’s donanemab, which demonstrated a 35% slowing in cognitive decline in early Alzheimer’s patients during the TRAILBLAZER-ALZ 2 trial. The ability to intervene before significant neuronal damage has prompted payers and healthcare providers to consider broad reimbursement for early-stage disease-modifying therapies, further boosting demand.
Market Restraints: Reimbursement and Infrastructure Gaps
Despite the encouraging advancements, reimbursement complexities and diagnostic infrastructure deficiencies remain significant hurdles. Historically, neurodegenerative diseases have been managed symptomatically using drugs such as donepezil and levodopa. This has created skepticism around the value of newer, more expensive disease-modifying drugs.
Moreover, many of these advanced treatments require biomarker-confirmed diagnoses. Yet, a 2024 Alzheimer’s Association survey found that less than 30% of neurologists in the U.S. routinely order amyloid PET or CSF tests. Factors like cost, limited access, and concerns over clinical actionability limit their usage. Furthermore, many global reimbursement systems continue to prioritize low-cost symptomatic treatments, slowing adoption of innovative drugs even after regulatory approval.
Opportunities: Stem Cell and Regenerative Medicine Gain Ground
The emergence of stem cell therapies as a regenerative option is unlocking new opportunities. These therapies aim to restore damaged neural tissue rather than merely alleviate symptoms. This approach is particularly promising in Parkinson’s disease, where the regeneration of dopamine-producing neurons could provide long-lasting clinical benefits.
BlueRock Therapeutics, a Bayer subsidiary, initiated Phase 2 trials in 2024 for its iPSC-derived dopamine-producing cell therapy. Positive early findings from Phase 1—demonstrating both safety and motor function improvement—have invigorated interest in adjunct therapies to support cell engraftment and reduce neuroinflammation. This could lead to the creation of combination regimens involving small molecules or immunomodulators, representing a significant future growth avenue.
Drug Class Analysis: Immunomodulators to Dominate
By 2025, immunomodulators are projected to capture approximately 43.5% of the total neurodegenerative diseases drugs market. Their efficacy in targeting core inflammatory pathways and immune dysregulation makes them essential, especially in conditions like multiple sclerosis. Regulatory familiarity and the availability of biomarkers for patient stratification also make this drug class highly attractive.
Meanwhile, dopamine agonists such as pramipexole and ropinirole are being increasingly deployed in early-stage Parkinson’s disease. These drugs offer symptom relief while delaying levodopa initiation, thereby mitigating the long-term complications commonly associated with levodopa, such as motor fluctuations and dyskinesias.
Disease Indication Analysis: Multiple Sclerosis Leads Market Share
Multiple sclerosis (MS) continues to dominate the disease landscape with a projected market share of 62.6% in 2025. The disease’s autoimmune nature, availability of clearly defined clinical endpoints, and a robust base of biomarker research make it amenable to disease-modifying therapies. More than 20 DMTs have already received global regulatory approval for MS, underlining the market's maturity and sustained investment interest.
Alzheimer’s disease is emerging as another key area, driven by its significant public health impact. According to the Alzheimer’s Association, over 7 million individuals in the U.S. currently live with the disease—a figure projected to nearly double by 2050. This epidemiological urgency has pushed Alzheimer’s to the forefront of both policy discussions and drug development pipelines.
Regional Insights: North America at the Forefront
North America is forecast to hold about 51.8% of the global market share by 2025. This dominance is fueled by strong regulatory support, high public and private investment, and policy shifts toward the reimbursement of innovative therapies. The U.S. Food and Drug Administration (FDA) recently granted full approval to Leqembi, the first traditional-pathway anti-amyloid Alzheimer’s drug. The Centers for Medicare & Medicaid Services (CMS) subsequently expanded reimbursement coverage, accelerating market access.
Canada also approved Leqembi in late 2023, though with stricter reimbursement guidelines. This underscores the country’s rigorous approach to cost-effectiveness while still acknowledging the need for innovation in dementia care.
Europe Focuses on Real-World Evidence and Data Infrastructure
Europe’s neurodegenerative drugs market is marked by stringent regulatory criteria and increasing emphasis on real-world data (RWD) to support new treatment paradigms. While the European Medicines Agency (EMA) approved Leqembi with conditional marketing authorization in late 2024, Germany’s G-BA rated its clinical benefit as ‘minor’, delaying reimbursement and pricing decisions.
To address these hurdles, the Innovative Health Initiative (IHI), funded under Horizon Europe, has committed over €100 million toward neurodegenerative disease research. Projects like NEUROCURE and the European Platform for Neurodegenerative Diseases (EPND) are building standardized data and biomarker networks to improve therapeutic development and access.
Asia Pacific: Accelerating through Government-Backed Innovation
Asia Pacific is rapidly becoming a high-potential region due to population aging, proactive regulatory bodies, and local biotech innovation. Japan has taken the lead by approving lecanemab in September 2023 and incorporating it into the National Health Insurance system shortly after.
China is boosting neurodegenerative R&D under its Healthy China 2030 initiative. Local drugmakers like Green Valley Pharmaceuticals are gaining momentum, particularly with GV-971, a marine algae-based Alzheimer’s treatment currently undergoing Phase 3 global trials. South Korea is gaining ground as a precision medicine hub, with players like Peptron and Medytox developing novel peptide and botulinum-based approaches.
Competitive Landscape: Big Pharma Meets Biotech Innovation
The neurodegenerative diseases drugs market is fragmented, with large pharmaceutical firms leveraging scale and experience while smaller biotech firms inject innovation. The industry is seeing increased activity in blood-brain barrier-penetrant biologics, gene therapies, and antisense oligonucleotides.
Collaborations between major pharmaceutical players and emerging biotech companies are intensifying. These alliances focus on leveraging advanced platforms to develop next-generation drugs for conditions like ALS, Huntington’s disease, and genetically inherited neurodegenerative disorders.
Recent Industry Developments
In July 2025, Klotho Neurosciences received FDA Orphan Drug Designation for KLTO-202, a novel gene therapy targeting ALS. The therapy works by promoting the expression of secreted-Klotho, a protein believed to have neuroprotective effects. The designation offers multiple advantages, including market exclusivity and tax credits.
In March 2025, Alpha Cognition Inc. launched ZUNVEYL, a new treatment for mild to moderate Alzheimer’s disease. The company is positioning this launch as a step toward offering more affordable and innovative solutions for aging populations and their caregivers.
Key Companies in the Market
Several global pharmaceutical leaders are deeply involved in the neurodegenerative diseases drugs market. Prominent names include Biogen, Pfizer, Hoffmann-La Roche, Merck & Co., Novartis, Sanofi, Teva Pharmaceuticals, Orion Pharma, UCB, ACADIA Pharmaceuticals, Lundbeck, and Mitsubishi Tanabe Pharma. These companies are continuously expanding their portfolios through both internal R&D and strategic acquisitions.
Conclusion
As aging populations, clinical breakthroughs, and biomarker advancements reshape the healthcare landscape, the neurodegenerative diseases drugs market is poised for transformative growth. From immunomodulators to gene therapies and from North America to Asia Pacific, the sector is evolving rapidly with a keen focus on disease modification, early intervention, and personalized medicine. With projected revenues of US$ 85.0 billion by 2032, this market is set to remain at the center of pharmaceutical innovation and public health policy for years to come.
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