Diabetes markets (Type I & II)

The market for products worldwide in the management of diabetes is the subject of an analysis done by MMD at the end of 2005. While a plethora of studies are available on markets for diabetes-related products, our analysis succeeds uniquely by looking at both established and developing technologies with a more critical eye and doing so in a global analysis.

Worldwide Diabetes Market 2004

Medications	$15,000 million
Diagnostic devices	$8,000 million
Insulin therapy devices	$275 million
Insulin pumps	$1,000 million
TOTAL	$24.3 billion

This $24 billion global market -- big enough as it stands -- represents only the tip of the potential market iceberg, for several important reasons.

1. For the majority of Type 2 diabetes, the adult onset segment, is an undiagnosed, untreated population


2. A huge pent-up demand exists for improved treatment due to the need for frequent testing (finger pricks) and insulin administrations (pen/syringe)


3. A huge payer demand exists for effective treatment (read high patient compliance) that reduces the incidence of costly complications


4. Advancements in diagnosis OR treatment that lead to (pick one) improved quality of life or reduced rate of complication leading to even a modest increase in the penetration of the Type 2 undiagnosed will be a huge boon to the market

So, the technologies being pursued with aggressive energy include:

• minimally invasive glucose monitors (optical coherence tomography, ultrasonic, measurement, infrared, etc.)
  
• closed loop pump/monitor systems ("artificial pancreas")
  
• stem cells ("cure")
  

It is very diffiicult to discern between those analyses of the diabetes market that are largely driven by spreadsheet formulas and those that both grind out the hard numbers and apply real insight to determine the defensible timing and impact of technology developments.

Our intention and our belief is that our hard work has produced the latter.