TREATMENT RESISTANT DEPRESSION MARKET ANALYSIS

Treatment Resistant Depression Market Size and Trends

The Treatment Resistant Depression Market is estimated to be valued at USD 1.91 billion in 2024 and is expected to reach USD 2.54 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

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Rising cases of treatment resistant depression, growing awareness regarding available treatment options, and increasing access to healthcare facilities are expected to aid the market growth during the forecast period. However, high costs associated with R&D activities for developing novel molecules and therapies along with risks associated with clinical trials may hinder the market growth to some extent. Overall, the increasing uptake of combination therapies and presence of strong product pipeline are expected to offer new opportunities for players operating in this market in the coming years.

Increasing prevalence of depression disorders

The global treatment resistant depression market is anticipated to experience growth during the forecast period, propelled by factors such as the increasing prevalence of depression. For example, data from the National Institute of Mental Health in January 2022 revealed that approximately 21.0 million adults in the U.S. experienced at least one major depressive episode in 2020, equating to 8.4% of the total adult population. Additionally, heightened awareness about depression and the introduction of new medications are contributing to the market expansion. According to the World Health Organization (WHO) as of June 2021, over 700,000 individuals die by suicide annually, making it the fourth leading cause of death among 15-19-year-olds. Moreover, countries with fast-paced economies like the U.K. and the U.S. exhibit a significant proportion of their populations affected by depression. For instance, in June 2022, according to Anxiety and Depression Foundation statistics updated, generalized anxiety disorder is expected to impact 6.8 million adults annually, constituting 3.1% of the U.S. population. Therefore, the increasing global incidence of depression is forecast to drive the market growth in the coming years.

Market Concentration and Competitive Landscape

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New drug approval and launch

Key players in the market are actively pursuing approvals for their innovative drugs designed to treat treatment resistant depression and subsequently launching them in the market. These efforts are anticipated to significantly contribute to market growth in the coming years. For instance, Denovo Biopharma LLC, a clinical-stage biopharmaceutical company specializing in biomarker-driven precision medicines, received authorization from the U.S. Food and Drug Administration (FDA) in January 2022 for its investigational new drug (IND) application of DB104 (liafensine) for treatment resistant depression (TRD). This milestone allows Denovo to initiate a global Phase 2b clinical trial to evaluate the safety and effectiveness of liafensine in TRD patients.

Key Takeaways of Analyst:

One of the major drivers contributing to the treatment resistant depression market growth is the increasing cases of patients not responding to first-line antidepressant drugs. Many patients struggle with depression for longer durations without getting complete relief from existing treatment options. This non-responsiveness has led to an increase in demand for alternative treatment choices.

However, high cost of newer treatment modalities is one of the major challenges as these therapies demand longer duration of treatment and follow ups. Also, lack of awareness about newer treatment options in developing regions may limit growth opportunities in the near term. The U.S. represents the largest regional market currently due to the availability of advanced treatment choices and supportive reimbursement structure. Within the U.S., specialty clinics adopting newer therapies are expected to boost market revenues. Europe is also expanding steadily driven by rising research into novel drugs and devices.

Approval and uptake of new drug classes like Ketamine can provide significant growth prospects over the next five years. Adjunct non-pharmacological therapies including Electroconvulsive Therapy and Neurostimulation devices are also gaining traction. If successful, these new-age therapies may capture higher market share by addressing the unmet needs of hard-to-treat patients.

Market Challenges: High Cost and Rise in Adverse Drug Reaction

The high cost of drugs used to treat treatment resistant depression is anticipated to hinder market growth in the forecast period. For example, in March 2020, Johnson & Johnson, a multinational pharmaceutical and biotechnology company, announced the pricing of its nasal spray depression treatment, Spravato, at US$ 590 for a 56 mg dose and US$ 885 for an 84 mg dose, which may pose financial challenges for patients seeking this medication. The high cost of drugs used to treat treatment resistant depression is significantly restraining the growth of Treatment Resistant Depression Market. Treatment resistant depression refers to a condition where individuals do not respond to at least two antidepressant treatments of adequate dose and duration in the current depressive episode. While the exact prevalence is unknown, it is estimated that nearly 30–50% of individuals with major depressive disorder have treatment resistant depression.

Market Opportunities: Promising Opportunities in Treatment resistant Depression

The current drug pipeline is promising and includes new molecular entities targeting neurotransmitter pathways beyond serotonin and norepinephrine. Advances in digital and remote healthcare technologies allow for more precise diagnosis and combination with non-drug therapies. Growing mental health awareness has increased screening and diagnosis rates, highlighting the need for more effective solutions. An improved understanding of depression.

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Insights, By Drug Type: Antidepressants Lead Treatment resistant Depression Market Due to Efficacy and Affordability

In terms of By Drug Type, Antidepressants dominate the treatment resistant depression market, constituting the highest share, 65.40% in 2024 owing to their widespread use and proven effectiveness. Despite the emergence of newer drug classes like SNRIs, antidepressants remain the frontline choice prescribed by doctors. Their mechanism of action, targeting serotonin, norepinephrine, and other neurotransmitters, effectively alleviates symptoms for many depression sufferers. Research indicates that antidepressants are particularly effective for mild to moderate depression, and even some severe cases. Their well-established efficacy and safety profile make them a preferred initial treatment option for many clinicians. Although newer drug classes may boast higher remission rates, antidepressants suffice for numerous individuals to attain stable remission.

Insights, By Distribution Channel: Hospital Pharmacies Dominate Treatment resistant Depression Market Due to Acute Care Role

Hospital pharmacies hold the largest share in the treatment resistant depression market, with high share of 40.12% in 2024 primarily due to their pivotal role in acute care settings. Patients requiring hospitalization or intensified treatment for severe depression have their drug therapy managed by hospital pharmacies throughout their stay. This allows for close monitoring of medication efficacy and side effects under medical supervision. Specialized psychiatric evaluation and management, essential for severe or treatment resistant cases, are primarily available in hospitals. Here, experts can tailor drug regimens with options not typically found outside of hospital settings. Centralized dispensing through hospital pharmacies facilitates these specialized treatment approaches.

Moreover, the transition from hospital to outpatient care relies on discharge records and prescriptions managed by hospital pharmacies. For recurrent or severe cases, multiple or prolonged hospitalizations may be necessary before achieving remission. Each admission involves the cycle of drug provision through hospital pharmacies under medical supervision.

Regional Insights

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North America has dominated the global treatment resistant depression market for many years and it continues to hold the largest share of 38.2% in 2024. This can mainly be attributed to factors such as high prevalence of mental disorders in the region, presence of favorable reimbursement policies for new drug approvals, and concentration of major industry players in the region. The U.S. alone accounts for over half of the regional market size owing to the large population suffering from depression and growing awareness. The developed healthcare infrastructure and high spending on specialty drugs have further assisted market growth.

Asia Pacific has lately emerged as the fastest growing regional market for treatment resistant depression. The rise of the Asian market can be credited to increasing mental health problems, growing investments by international brands, and improving accessibility of drugs. In particular, market expansion in India and China has been remarkable. This is because both countries represent huge patient pools and are strategically focusing on broader health insurance coverage for such treatments. Local manufacturers are additionally strengthening their presence by enhancing production capabilities and introducing low-cost generic alternatives. Moreover, participation from global pharmaceutical players is helping expand the available product portfolio and drive overall market uptake in Asia Pacific.

Market Report Scope

Treatment Resistant Depression Industry News

• In October 2023, a study compared SPRAVATO nasal spray, of Janssen Pharmaceuticals, Inc, a pharmaceutical company with quetiapine XR in treating treatment resistant depression (TRD). SPRAVATO showed better remission rates after eight weeks and longer-term relapse-free periods. Adverse events were consistent with known safety profiles. The study's limitations include its open-label design and differences in treatment compliance and administration routes. However, it provides valuable insights for physicians managing TRD, offering patients additional treatment options.
• In August 2022, Merck Sharp & Dohme LLC, a biopharmaceutical company commenced, Phase II A Clinical Trial to assess the safety and efficacy of MK-1942 in patients with treatment resistant depression
• In July 2022, Novartis Pharmaceuticals, a Switzerland-based multinational pharmaceutical corporation, announced plans to begin a Phase 2 clinical trial of MIJ821 (ketamine) for the treatment of treatment resistant depressive disorders in September 2022
• In May 2022, COMPASS Pathways, a biotechnology company, presented positive results from the Phase IIb study of COMP360 psilocybin therapy for the treatment of treatment resistant depression at the American Psychiatric Association annual meeting in New Orleans
• In February 2022, Denova Biopharma, a private San Diego-based biotech company, obtained the USFDA approval to initiate a Phase 2b clinical trial to investigate the efficacy and safety of DB104 (liafensine) in patients with treatment resistant mood disorders
• In December 2021, Dr. Reddy, a multinational pharmaceutical company, introduced a product equivalent to Venlafaxine extended release, an antidepressant tablet, following approval from the U.S. Food and Drug Administration.

*Definition: The Treatment Resistant Depression Market consists of drugs, therapies and other treatment options for patients whose depression fails to respond adequately to initial treatment, usually one or more antidepressant medications. Treatment resistant depression is often difficult to treat and requires alternative approaches beyond typical first line treatments. This market provides advanced solutions such as newly developed antidepressants, psychotherapy, electroconvulsive therapy, vagus nerve stimulation and other innovative treatment methods aimed at helping patients whose depression does not improve with standard antidepressant drugs.

Market Segmentation

• Drug Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Antidepressants
  • Selective Serotonin Reuptake Inhibitors
  • Serotonin-norepinephrine Reuptake Inhibitors
  • Others
  • Atypical agents
  • Others
• Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Hospital Pharmacies
  • Retail Pharmacies
  • Online Pharmacies
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Eli Lilly and Company
  • GlaxoSmithKline
  • Pfizer Inc.
  • Janssen Pharmaceuticals
  • AbbVie Inc.
  • AstraZeneca
  • H. Lundbeck A/S
  • Sandoz International GmbH
  • Par Pharmaceutical Companies Inc.
  • Otsuka Holdings Co., Ltd.
  • Wyeth
  • Scherinhg Plough CorporatioN
  • Vistagen therapeutics, Inc
  • Forest Laboratories
  • Bristol-Myers Squibb Company
  • Takeda Pharmaceuticals
  • Lundbeck
  • Allergan
  • Supernus Pharmaceuticals
  • Sage Therapeutics
  • Neuralstem