We all feel pain. Some 87 million Americans and over 290 million individuals worldwide suffer from some form of chronic pain. Sales of therapeutics for pain management reached over $20 billion last year, up 11%.

To learn more about the past, present and future of the pain management market then don't miss the latest issue of Neurotech Insights - the neurotechnology investment newsletter. Included in this issue:

-Next Generation Pain Treatments (in-depth analysis with latest clinical trials)
-Interview with Pain Therapeutics CEO, Remi Barbier
-Discussion of neurostimulation treatments for pain management
-Market analysis of public companies (RNVS, CEPH, MDT, DOVP, NTII, SHPGY)
-Deals, alliances and financings
-Neurotech Index performance (companies treating neurological diseases)

If you are an investor, corporate executive, researcher, or someone who suffers from chronic pain I recommend picking up the latest copy of Neurotech Insights - the biweekly neurotechnology investment newsletter.

What regions are leading the global brain industry?

According to a 35-page report I wrote over the past six months and published today titled, The Neurotech Nexus - Regional Economic Clusters in the Global Neurotechnology Industry (Download here for free, compliments of the Institute for Global Futures), San Francisco, Boston, San Diego, and London are leading the race to create established neurotech clusters.

Here is the press release we put over the wire this morning announcing the availability of the report and the key findings:

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 15, 2005--A new report from NeuroInsights, the neurotechnology market authority, and sponsored by the Institute for Global Futures, revealed today that seven of the ten leading neurotech regions are in the United States, with another two in Europe and one in Asia.

Some of the findings in NeuroInsights' Neurotech Nexus Report include:

-- San Francisco Bay Area leads neurotechnology investment, research and product development -- with Boston in close second. San Diego and London-Cambridge ranked third and fourth respectively;

-- Three sectors of the neurotechnology industry are playing a critical role in regional economic development with $87 billion in revenues currently derived from neuropharmaceuticals, $2.8 billion from neurodevices, and $12 billion from neurodiagnostics;

-- While major pharmaceutical companies currently generate the majority of the neurotechnology industry's revenue, they increasingly rely on licensing relationships with smaller regional companies for breakthrough treatments;

-- Munich (Germany), Montreal (Canada), Singapore, Tokyo (Japan), and Melbourne (Australia) are highlighted as Nascent Nexus' where active government support is fostering the development of neurotech clusters.

According to the report, neurotechnology represents the largest untapped medical market and there are numerous opportunities available to communities that can leverage the dramatic growth of neurotechnology. Given the promise of new treatments, coupled with a patient population of over 1.5 billion people who suffer from a brain-related illness, neurotechnology has become the leading recipient of life science venture funding worldwide.

"Big economic payoffs will accrue to communities that successfully nurture the emerging 'brain industry,'" said Zack Lynch, managing director of NeuroInsights. "The close collaboration of knowledge-intensive institutions, investors, businesses and workers fosters high-quality job creation, influx of investment capital and economic growth."

Dr. James Canton, CEO of The Institute for Global Futures, the report's sponsor, explained, "Neurotech is now truly a global industry with companies and cutting-edge research in the U.S., Europe, and Asia. These regions stand out because the concentration of talent and capital has a positive feedback effect creating a nexus for neurotechnology innovation."

The Neurotech Nexus Report evaluated 20 regions worldwide according to factors such as the concentration of neurotech companies, access to risk capital and social institutions to support future innovation. According to the report's analysis, the top ten regions worldwide are:

1. San Francisco Bay Area
2. Greater Boston
3. San Diego
4. London -- Cambridge
5. Greater New York
6. Greater Raleigh -- Durham
7. Los Angeles -- Irvine
8. Greater Philadelphia
9. Shanghai, China
10. Stockholm, Sweden

About NeuroInsights

As the neurotechnology market authority, NeuroInsights(TM) helps investors, industry executives and the public understand and profit from the rapid growth of companies treating brain and nervous system-related illnesses, providing:

-- Neurotech Insights Investment Newsletter
-- The Neurotechnology Industry 2005 Report
-- Custom economic development analysis;
-- Strategic advisory services;
-- Events and conferences;
-- Market news and stock tracking

About The Institute for Global Futures

The Institute for Global Futures is a San Francisco based think tank that forecasts innovations and trends. IGF provides keynote presentations; futures research services, and strategy consulting to the Fortune 1000, associations and governments.

Availability

The 35-page Neurotech Nexus Report sponsored by the Institute for Global Futures is available for free downloads from NeuroInsights at www.neuroinsights.com.

About the Neurotech Index
To help investors gauge the overall welfare on the public markets of companies specializing in neurotechnology, NeuroInsights has introduced NeuroInsights' Neurotech Index in the recently released strategic investment and market analysis report on the neurotechnology industry.

Index Performance
In 2004, the Neurotech Index was up 27.1% compared to respective gains of 10.9% and 8.6% for the S&P 500 and the NASDAQ Composite Index. The Neurotech Index also outpaced the NASDAQ Biotechnology Index, another life-sciences-oriented measure of the public markets, which grew by 5.1% in 2004.

Index Calculation
The Index is an equally weighted index of 30 companies that have a significant percentage of their current and future profits tied to neurotechnology, including neuropharmaceuticals, neurodevices or neurodiagnostics. Large conglomerates, even those with significant neurotechnology products, are excluded from the Index. It will thereby offer insight into the way the public markets perceive the future promise of neurotechnology and its current state of development.

At the beginning of 2004, 26 companies qualified for inclusion in the Neurotech Index. New neurotech IPOs in the ensuing months have increased the number of index companies to 30. The index is based on a value of 100 as of December 31, 2003, and is calculated using an equal-dollar weighting methodology designed to ensure that each security is represented in an approximately equal dollar amount.

The index is rebalanced semiannually, on the last trading day in December and in June, at which time the number of companies included in the index may change based on changing conditions in the industry, such as initial public offerings and M&A activity. The number of whole shares of each component stock is then adjusted so that each company is again represented in equal dollar amounts and then adjusted by a divisor, if necessary, to ensure continuity of the index.

For more information about the companies covered in the NeuroInsights' Neurotech Index please visit www.neuroinsights.com.

I've spent the past two years writing this report. I hope you enjoy it.

NeuroInsights Reveals Brain Industry's Investment Opportunities, Risks and Competitive Landscape in New Industry-Defining Report

SAN FRANCISCO--(BUSINESS WIRE)--May 11, 2005--NeuroInsights, the neurotechnology market authority, today announced the release of the industry's first comprehensive investment- and business-focused analysis of the neurotechnology marketplace. Titled "The Neurotechnology Industry 2005: Strategic Investment and Market Analysis Report of the Global Neurological Disease and Psychiatric Illness Markets," the 250 page report is the first publication to provide a unified market-based framework to help investors, companies and governments easily quantify opportunities, determine risks and understand the dynamics of this rapidly changing market.

The report's findings include:

-- NeuroInsights' Neurotech Index(TM) -- an investment benchmark that measures the stock performance of 30 publicly traded neurotechnology companies -- grew by 27.1 percent in 2004, compared to respective gains of 10.9 percent and 8.6 percent for the S&P 500 and NASDAQ Composite Index.

-- Neurological disease and psychiatric illness represent the largest and fastest growing unmet medical market: over 1.5 billion people worldwide and 100 million individuals in North America alone;

-- The neurotechnology industry has three sectors: neuropharmaceuticals with revenues of $87 billion and 13 percent growth annually; neurodevices with revenues of $2.8 billion and 20 percent growth annually; and neurodiagnostics with revenues of $12 billion and 11 percent growth annually;

-- VC investment in neurotechnology companies climbed 225 percent from 1999 to 2004 -- representing nearly $6 billion. Today, one-in-four VC dollars invested in Life Sciences goes to neurotechnology companies;

"It's an opportune time for investors to be looking at this market," said Zack Lynch, managing director of NeuroInsights. "The industry framework detailed in this report helps answer critical investment questions, such as: Who is investing in neurotechnology and what types of startups are getting funded? How are public neurotech companies performing compared to other industries? In what markets are neurodevices competing with neuropharmaceuticals?"

Pricing and Availability

The Neurotechnology Industry 2005: A Strategic Investment and Market Analysis Report of the Global Neurological Disease and Psychiatric Illness Markets." is available immediately. The 250 page report includes profiles of more than 300 public and private neurotechnology companies, products in clinical trials, and competitive analysis by market segment for more than 13 disorders, including Alzheimer's disease, attention deficit hyperactivity disorder, insomnia, depression, anxiety, epilepsy, addiction, stroke, schizophrenia, sensory disorders, Parkinson's disease and pain.

The cost of the report is $5,000 and can be ordered directly from NeuroInsightsor by calling 415-229-3225.

Neurotechnology Industry Experiencing Explosive Growth in Venture Funding Says Upcoming Report from NeuroInsights

SAN FRANCISCO--(BUSINESS WIRE)--March 16, 2005--A soon-to-be-released report from NeuroInsights, the neurotechnology market authority, will show that venture capital investment in neurotech companies (firms developing treatments for neurological and psychiatric illnesses) climbed a phenomenal 225 percent from 1999 to 2004 -- representing $5.987 billion invested by VCs during that period.

According to data compiled by NeuroInsights, more than one-in-four venture capital dollars invested in the Life Sciences now goes to companies creating innovations in neuropharmaceuticals, neurodevices and neurodiagnostics.

"Five of the top ten leading causes of disability worldwide are caused by problems with the brain and nervous system," explained Zack Lynch, managing director of NeuroInsights. "The good news is that new treatments for those suffering from illnesses such as Alzheimer's disease, depression and chronic pain are emerging quickly. Building on the success of the Human Genome Project and decades of brain research, neurotech now holds the greatest potential for major discoveries, commercial success and real investment opportunities. It's no wonder over 60 venture capital firms made significant investments in private neurotech companies last year."

"Neurotech companies are addressing the largest and fastest growing unmet medical market so there's room for many new companies with good science to compete," said Mark Cochran, managing partner at NeuroVentures Capital. "As a focused neurotech fund, we've talked with over 500 startups in the space and the potential for high return investment has never been more compelling."

Mental illness represents the largest and fastest growing unmet medical market with an estimated 1.5 billion people suffering from a diagnosable mental disorder in a given year. Annually, neurodegenerative diseases and disorders generate more healthcare related costs and lost income than any other therapeutic arena: an estimated $1.0 trillion worldwide and $250 billion in the U.S. As population growth continues and people live longer these numbers will soar much higher.

Translating basic research into actual cures for mental illness will require an order of magnitude more capital than is currently being invested by governments, private enterprise and foundations. With the annual direct and indirect cost of mental illness approaching $250B in the US, the $1.4B NIMH budget remains a drop in the bucket when compared to the size of the problem. Even the estimated $30B annually invested by pharmaceutical and biotechnology companies to develop new treatments for mental illness is inadequate with respect to size of the global mental health care crisis.

To dramatically increase the amount of financial capital available to neuroscience researchers and emerging companies, neuroscience must become an industry that can attract global capital: the neurotechnology industry.

The neurotechnology industry faces unique investment, research, and regulatory issues currently hidden by the fragmented coverage of relevant sectors including: biotechnology, pharmaceuticals, biopharmaceuticals, and medical devices. The lack of a focused industry analysis results in reduced valuations for companies, incomplete investment scrutiny, and a cloudy view of the competitive dynamics in this rapidly expanding and highly profitable industry.

Just as nano-scale science evolved into the nanotechnology industry over the past five years – becoming the focus of over 50 venture funds while simultaneously engaging global equity markets through tracking indexes (e.g. Merrill Lynch Nanotech Index) – defining the neurotechnology industry will increase the potential for successful exit strategies available to neurotechnology companies and investors. With the public markets pulling for the latest translation of research into successful treatments, the pool of capital that neurotechnology venture funds will have at their disposal will increase dramatically.

Think about it this way: if there was a simple way to invest in mental health wouldn't you want 10% of your retirement portfolio focused on neurotech ventures who are creating the next generation of tools for neurodegenerative diseases and mental disorders. If so, what companies would you include?

While bioinformatics isn't likely to create any new software stars, neuroinformatics will. The reason is simple: complexity. As I mentioned recently, the data about a person's genome can already fit on an ipod, yet the data about one's brain will require petabytes, if not exabytes, of storage capacity.

How much is a petabyte? One example is the Internet Archive Wayback Machine that contains approximately 1 petabyte of data and it has been archiving almost every webpage created since 1993.

Along with government initiatives like the human brain project there are also several small companies targeting neuroinformatics like Australia's Brain Resource Company (BRC), San Diego's Neurome, and Chicago's MIICRO.

Here is an overview of what BRC is up to (courtesy of Psychscape)

BRC has has set up the world's first standardized international database on the human brain. BRC already has a database of over 1,000 normative subjects and over 500 clinical subjects and still growing. This collaboration of scientists and technology partners (such as IBM) gathers information into a neuroscience database which includes demographic, neuropsychological (cognitive), electrical brain-body function, sMRI, fMRI, genetic and lifestyle data along with function, structure and genetics of patients' brains. A patient who is referred to the database (by over 50 researchers from around the globe), first enters data online - this consists of demographic data such as age, gender, eating and drinking habits, early childhood experiences. The patient tben goes into one of the BRC labs to undergo various tests, such as MRIs and EEGs

One of the goals of the BRC is to allow rapid comparisons of a patient profile against the normative data with the goal of predicting a response to particular drugs or anticipate a side effect to a specific intervention. Science has been chasing the ability to predict a personal response to any clinical intervention. Who will respond and who will not respond is extremely valuable information to the pharmaceutical industry as well as to clinicians.

Lux Research just published the third edition of their seminal report on the nanotechnology industry. The Nanotech Report 2004 profiles more than 1,000 companies and features new investment frameworks and strategies, company and academic profiles, patent licensing opportunities and trends, competitive data, interviews with Nobel laureates and industry experts, profiles of the most influential players in nanotechnology, and a technical primer.

Because nanotechnology is a key enabler of neurotechnology, I recommend that anyone involved in neurotech-oriented ventures read the insights contained within this report - click here for a free download of the introduction.

Key findings in the report include:

- Governments, corporations and venture capitalists will spend more than $8.6 billion worldwide on nanotechnology research and development in 2004.
- National & local governments will invest more than $4.6 billion in nanotech R&D in 2004.
- The U.S. government will spend nearly twice as much on nanotechnology this year as it did on the Human Genome Project in its peak year.
- The U.S. has now appropriated more than $3.16 billion to fund nanotechnology R&D since 2000 and is proposing $982 million in new funding for FY 2005.
- Major corporations will spend more than $3.8 billion on nanotech R&D in 2004.

A webinar is also available that provides the highlights of the report. It can be found by clicking here. For more nanotech news check out this resource.

NeuroWiki is yet another example of how wikis are transforming how humans collaborate and share information. Wikis are being used for everything, including: music, gmail, business and education.

While wikipedia is perhaps the best public example of their potential, many don't find them user friendly enough. But as Socialtext's Adina Levin shares, "wikis confuse people because they are designed to be revised."

At the end of the day, the important component to the success of any wiki is "gardening". Just like leaf cutter ants must tend to their coevolving fungi gardens in order to survive, humans need to prune our information gardens. In the case of neurowiki, I would advise an ox-drawn plow or two. Remember, there is a fungus among us.

Coming this fall, the Nature Publishing Group will introduce: Nature Methods. This is long overdue and will likely become a publishing empire in its own right over the next decade. Replication of methods sits at the center of the scientific method. I bet Derek Lowe and Randall Parker will applaud NM's introduction too.

According to Nature Methods' Editor, Veronique Kiermer, "they are committed to emphasizing quality, novelty and readability and to serving a large and varied audience with cutting-edge content that meets the highest standards of quality."

"The journal will present a carefully balanced selection of long papers and brief communications, describing the development of new methodologies and significant improvements to tried-and-tested techniques. These articles will be selected on the basis of their likely impact on the scientific community, with a strong preference for those works that have the potential for broad practical application across several sectors of the life sciences. The articles will be technical in essence and tailored to provide readers with an accurate expectation of technical performance, describing validation or proof of concept and illustrating the performance of the new method in comparison to currently available approaches. As with all Nature journals, articles will undergo rigorous peer review process, ensuring the Nature tradition of excellence is maintained.

Along with these articles, each issue will contain a detailed protocol for a relatively recent and technically challenging method, presented in a practical format that allows immediate reproducibility. The journal will also publish reviews written by authorities in their field, discussing the applicability and limitations of specific technologies in comparison to other approaches.

What's Next? Nature Neurotechnology.

The Washington Post reports on the increasing problem facing nano-scale researchers and the nanotechnology "industry" as a whole, a lack of any real scientific or industry taxonomy to describe products. Without an intelligent and consistent taxonomy to describe new materials, products and companies, the nanotechnology industry risks confusing investors and attracting unwanted attention of government regulators.

"Now scientists are tackling the difficult process of creating one. The effort is young; experts are just now organizing a series of conferences to hammer out a system. But the process offers an unusual peek into the arcane world in which chemists decide how to categorize the tangled skeins of new knowledge.

Colvin hopes to receive funding to begin a series of nano nomenclature meetings this August and expects it could take as long as two years to get a solid framework. These meetings will include biologists, environmental scientists and others, reflecting the many potential applications for nanoproducts....In some cases, existing terms may suffice. In others, words may have to be invented, experts said."

Neurotechnology represents better tools for mental health. As I mentioned in my letter to President Bush last year, neurotechnology will emerge before genetic engineering as the primary toolset that humanity will use to counter the growing global mental health epidemic for many reasons, including:

Indeed, as neurotechnology develops it may turn out that in a majority of situations humans will choose neurotechnology instead of genetic engineering to combat disease because each versatility it offers.

1. Neural prostheses -- Size of cochlear implant market is $500M in 2003 - $1.6B in 2008), (retinal implants viable market by 2007, 2008)
   
   
   
2. 
   
   Neuromodulation -- Use of electronic stimulation to induce and restore desired function (e.g. urinary urge incontinence for spinal chord injury patients) Neural modulation market estimate is $800m in 2004 - $3B in 2008. Deep brain stimulation also growing for Parkinson’s.
   
   
3. Therapeutic stimulation – Stimulators to reduce pain (e.g. Advanced Bionics—Bion)
   
   
   
4. Neurodiagnostics – Equipment used to read electrical nervous systems
   
   
   
5. Neural-computer interfaces – Use of nervous system signals to drive external
   

James Cavuoto has been kind enough to provide me with a monthly subscription to Neurotech Business Reports. Although I think they define neurotechnology too narrowly, primarily focusing on electro-mechanical neural prostheses, the information contained in these monthly updates is relevant and concise for any neurotech investor. Of particular interest in June:

• Company focus: Cochlear Ltd.
  
• Research Institute profile: Wadsworth Center
  
• VC profile: Thomas, McNerney and Partners 

Today's hype surrounding the "revealing" of the world's first neural prosthesis for the hippocampus is just that, hype.  It's nice to keep the public informed about developments in neurotechnology.  This research shows promise, but this is far from the first brain prosthesis.

The neurotechnology industry includes companies researching, developing and marketing pharmaceuticals, biologics, medical devices, as well as diagnostic and surgical equipment for the treatment of neurological and psychiatric illnesses.

NeuroInsights has identified three sectors within the $100 billion industry:
neuropharmaceuticals, neurodevices and neurodiagnostics. Neurotechnology companies face fundamentally different investment requirements, research and development challenges, regulatory milestones and social drivers that sets them apart from other life science and health care companies.

See www.neuroinsights.com for more information on the neurotechnology industry.

The neurotechnology industry includes companies researching, developing and marketing pharmaceuticals, biologics, medical devices, as well as diagnostic and surgical equipment for the treatment of neurological and psychiatric illnesses.

NeuroInsights has identified three sectors within the $100 billion industry:
neuropharmaceuticals, neurodevices and neurodiagnostics. Neurotechnology companies face fundamentally different investment requirements, research and development challenges, regulatory milestones and social drivers that sets them apart from other life science and health care companies.

See www.neuroinsights.com for more information on the neurotechnology industry.