Diabetes Market Presents New Neurotech Opportunity

by James Cavuoto, editor
January 2012

The market for diagnosing and treating diabetes offers a new opportunity for neurotechnology device manufacturers. The increase in incidence of Type II diabetes in recent years is one demographic factor pointing to this opportunity.

The prevalence of diabetes is more than 20 million in the U.S. with another 80 million in pre-diabetic individuals. Total worldwide costs associated with the disease exceed $350 million per year. Diabetic peripheral neuropathy (DPN) affects more than half of people with diabetes and may lead to foot ulcers and limb amputation, as well as pain and an overall reduction in quality of life.

In 2011, NeuroMetrix, Inc. announced that it would shift its business focus to diabetes, specifically detection and monitoring of diabetic neuropathy—a common complication of the disease [NBR Feb11 p4]. To pursue that market, NeuroMetrix launched a device called NC-stat DPNCheck, a fast, accurate, and quantitative point-of-care test for the evaluation of systemic neuropathies such as diabetic peripheral neuropathy. The NC-stat DPNCheck device measures sural nerve conduction velocity and amplitude, which are recognized early and quantitative biomarkers for DPN. NeuroMetrix believes that the NC-stat DPNCheck test may address the unmet medical need for better, cost-effective approaches to detecting and monitoring DPN.

Shai Gozani, president and CEO of NeuroMetrix, was one of several CEOs of neurotechnology companies to present at the OneMedForum in San Francisco earlier this month. Gozani told attendees about the company’s transition from the traditional neurodiagnostics market to the diabetes market.

Gozani said the device generates $15 to $20 in biosensor revenue per use. Physicians typically charge patients $35 to $85 per visit. He said the company has $10 million in cash on hand although they are looking for an infusion of private placement to prepare for the diabetes market, which they see as a $200 million opportunity. The company also announced the development of a surface stimulation device, called Senses, to treat leg pain associated with DPN.

The company will target the primary care market, as well as endocrinologists and podiatrists. “Approximately 200 physicians, mostly endocrinologists and podiatrists, in 100 medical practices are now using the NC-stat DPNCheck to improve their management of DPN,” said Gozani. “This achievement comes three months after commercial launch. Ultimately, we hope to achieve broad adoption in both the U.S. and international markets where we believe NC-stat DPNCheck will enhance the ability of physicians to detect and stage DPN leading to earlier and more targeted clinical interventions benefiting patient care and reducing health care costs.”

NeuroMetrix is not the first neurotech device company to target the diabetes market. In 2004, a Providence, RI startup called Afferent Corp. received $6 million in venture capital investment to develop a sensory stimulation device to restore sensation to individuals with diabetic neuropathy and other disorders. The company closed its doors in 2008. Afferent’s core technology sought to enhance the function of mechanoreceptor cells involved in sensory perception, by increasing “afferent signaling,” the flow of neurological information that originates in the extremities and travels to the central nervous system.

NeuroMetrix may also face competition from other vendors of TENS devices.