Neurosensing Vendors Target Psychiatric Market

by James Cavuoto, editor

Manufacturers of neurodiagnostic systems have begun to look at neuropsychiatric disorders as a new market opportunity for their systems and services. The initial goal appears to be the development of neurosensing devices that could be placed in psychiatrists’ offices to help them diagnose disorders such as depression and Alzheimer’s disease and identify the most appropriate form of therapy to treat those disorders. Aside from the revenue these systems will offer, they also promise to expedite and streamline the application of neurostimulation treatments to patients who are resistant to drug therapy.

As a sign of this impending market activity, Boston Scientific Corp. and Aspect Medical Systems, Inc. this month announced a strategic alliance in which Boston Scientific will provide Aspect $25 million to fund development of new brain monitoring technology designed to aid the diagnosis and treatment of depression, Alzheimer’s disease and other neurological conditions. Boston Scientific is betting that Aspect’s technology will help clinicians improve patient response to antidepressant therapy and provide early identification of cognitive decline associated with AD.

“A technology that could help clinicians identify neurological disease states, as well as the first, best medication or device-based therapies for treating psychiatric illnesses, could profoundly impact clinical practice,” said Andrew Leuchter, professor of Psychiatry at the Semel Institute for Neuroscience and Human Behavior at UCLA, and chair of Aspect’s neuroscience advisory board. “If Aspect’s technology could help determine at an early time if an antidepressant therapy is likely to speed recovery, it could help make depression easier to manage, improve treatment adherence, and dramatically improve the quality of life for millions of patients. Furthermore, for those patients who do not respond to medication, Aspect’s technology could potentially guide device-based neurostimulation therapy by helping clinicians determine if this approach would be effective prior to device implantation, and by helping clinicians determine the appropriate amount of stimulation to use.”

Four studies related to Aspect’s brain monitoring technology were presented at the American Psychiatric Association meeting in Atlanta, GA this month indicating that Aspect’s brain monitoring technology was able to predict within a few days of initiating treatment the effectiveness of antidepressant medications in treating depressed patients. It typically takes several weeks to determine if a depressed patient has responded to a specific treatment, and many patients suffer while they undergo multiple changes in therapy to identify an effective regimen.

Said Nassib Chamoun, Aspect president and CEO, “The agreement will allow us to pursue product development for depression and AD with the goal of introducing new products within the next three to five years. We hope to introduce new tools that can help medical professionals guide therapy management for patients throughout the course of treatment.”

This strategic alliance is intended to fund research and development efforts. Aspect and Boston Scientific will share equally in the profits from products developed to treat and manage depression and other neurological disorders. Up to 20 percent of the funds provided by Boston Scientific may be used to support Aspect’s AD research and development initiatives, and Aspect will retain all commercial rights for products developed in this area. Aspect may continue to collaborate with other third parties in the development of customized neurological assessment solutions.

Boston Scientific currently owns approximately 27.4 percent of Aspect equity. Aspect has amended its shareholder rights plan to provide that Boston Scientific may acquire beneficial ownership of, or commence a tender offer for, just under 29.5 percent (as opposed to the previous plan of 27.5 percent) of Aspect’s stock without triggering the exercise of rights under the plan.

The market for an effective, easy to use, AD diagnostic test has been estimated to be as much as $5 billion. Applied NeuroSolutions, Inc. of Vernon Hills, IL is developing a cerebrospinal fluid test to detect AD at a very early stage with 85 to 95 percent accuracy in more than 3,000 patient samples. Another neurosensing firm, Lexicor, of Augusta, GA, has developed an EEG-based diagnostic called the NeuroLex Indicator Report for attention deficit/hyperactivity disorder.