BCIs: The Next Big MedTech Opportunity?

This piece, by Onno Berkan, was published on 10/15/24. The original text, by Titchmarsh et al., was published by Morgan Stanley on 10/09/24.

A recent research report from Morgan Stanley provides an in-depth look at brain-computer interface (BCI) technology and its potential impact on healthcare and beyond.

BCIs allow for direct communication between the brain and an external device, potentially enabling people to control computers or machines with their thoughts. The technology has come a long way since the first detection of brain signals 100 years ago, with recent developments bringing us closer to practical applications.

The report estimates a significant market opportunity for BCIs in healthcare, with nearly 10 million potential candidates in the US alone. This could translate to a total addressable market of around $400 billion. The researchers project that by 2035, the market could reach $1.5 billion in accumulated sales, with an annual run rate of $300-400 million.

Initial applications are expected to focus on patients with severe motor impairments, such as those with ALS, spinal cord injuries, or stroke. BCIs could help these individuals regain some independence by allowing them to control computers or robotic limbs. The technology might also be used to treat conditions like epilepsy and depression by detecting and preventing episodes.

The report outlines two main types of BCIs: "enabling BCIs" that allow users to perform actions like moving a cursor, and "preventative BCIs" that could detect and prevent adverse events like seizures. The researchers expect the first commercial BCI to be available around 2030, assuming insurance coverage is established.

While the initial focus is on medical applications, the report also explores potential future uses in areas like military operations, gaming, and even general cognitive enhancement. However, these applications are likely much further in the future and raise significant ethical and safety concerns.

The development of BCIs faces several challenges, including improving device performance, ensuring safety, and demonstrating meaningful benefits for patients. Regulatory bodies like the FDA are working closely with companies to establish appropriate clinical trial designs and outcome measures.

The report acknowledges that widespread adoption of BCIs will depend on addressing safety concerns and demonstrating clear benefits. There may also be capacity constraints in terms of trained medical professionals able to implant and manage these devices.

Despite these challenges, the researchers present an optimistic outlook on the future of BCI technology. They believe that as the technology advances and becomes less invasive, it could eventually find applications beyond healthcare, potentially enhancing human cognitive abilities in the long term.

In conclusion, while BCIs are still in the early stages of development, they represent a potentially transformative technology with significant implications for healthcare and beyond. Morgan Stanley predicts that the next 5-10 years will be crucial in determining the trajectory of BCIs in MedTech. That is to say, if you're into BCIs, get in there now.

Want to submit a piece? Or trying to write a piece and struggling? Check out the guides here!

Thank you for reading. Reminder: Byte Sized is open to everyone! Feel free to submit your piece. Please read the guides first though.

All submissions to berkan@usc.edu with the header “Byte Sized Submission” in Word Doc format please. Thank you!