The Neurotech Business Carnival

Neurotech Business Reports overviews the most recent business news from across the neurotechnology industry. Among the highlights:

- Analysts probe into issues related to commercializing neuroprostheses
- Market projections suggest growth from $2.4B 2004 to $7.2B in 2008
- James Cavuoto reacts to monkey's controlling a robot arm with cortical implants
- Research Institution Profile: UCSF at forefront of neurostimulation devices
- Vendor Profile: Neurome parlays brain database into neuropharma contracts
- For the whole report

Also, don't forget to check out this week's "Carnival of the Capitalists".

Neurotechnology Leaders Forum in San Francisco Today

Congratulations to James Cavuoto and Neurotech Reports team for putting together a stimulating day conference on the neuro-electronic technology industry.

Neurotechnology Industry - Electronic Sector

Neurotech Reports defines neurotechnology as the application of electronics and engineering to the nervous system.

This is different than the broader definition of neurotechnology used by the Economist, Susan Greenfield and here on Brain Waves.

Neuroelectronic market segments

Critical industry issues: Educating clinicians, reimbursement by insurance, regulatory hurdles and implantation bias

Leading neuroelectronic companies: Medtronic, ANS, Cyberonics, Advanced Bionics, Neuropace

1. Neural prostheses -- Size of cochlear implant market is $500M in 2003 - $1.6B in 2008), (retinal implants viable market by 2007, 2008)
   
   
   
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   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
   

Addicted to Neurotechnology: A User’s perspective

What do a substance abuser and neurotechnology user have in common?

According to Jennifer French, a periplegic who uses a neural stimulation system that has allowed her to stand (with a walker) at her wedding and balance on boats, there are a few interesting similarities: both are addicts, both require time to develop that addiction and both are life changing. Her joke excluded, Jennifer is the executive director of the Society To Increase Mobility (STIM) a non-profit that disseminates information about neurotechnology to users.

For Jennifer, neurotechnology is not a market, not a product, but a whole new way to increase people’s quality of life. “It is life changing.”

New Neural Stimulation NSF Engineering Research Center Announced

A collaboration among USC, UC Santa Cruz and Caltech in cooperation with AMI has secured $20M in funding over five years.

Wireless Disposable Brain Imaging

10% of the population suffers from sleep apnea, but only 10% even know it.

Advanced Brain Monitoring has produced a new disposable brain EEG system (where the electrodes are disposable not the EEG--thanks Chris) that monitors alertness and drowsiness. ABM has received $7M in funding from NIH and DARPA. Their ARES system is inexpensive, non-invasive, 6 channel, bi-directional radio frequency transmission, can be comfortably worn for 8 hours, and is powered by 2 AA batteries.

Check out ABM’s tag line: Brain monitoring in the home, at work and on demand.

Neurotechnology VC's

The venture capital discussion focused on the differences between medical device and biopharmaceutical company valuations and exit strategies. Last IPO window for medical device companies was 1996 and most of the those companies have not done well. Last IPO window for biotech was 2000. Valuations have held up better.

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  Technology Partners – Roger Quy -- Neuroscience focus in the life sciences
  
  
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  Piper Jaffray Ventures – Heath Lukatch – Very impressive background
  
  
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  Bay City Capital – Konstantinos Alataris -- $500M bioscience fund
  
  
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  NeuroVentures Capital -- Dan O’Connell – Neuroscience ventures only, 150 reviewed, 8 investments to date

Neurotechnology Business Reports

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 

World's First Brain Prosthesis?

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.

What is Neurotechnology?

Neurotechnology is the set of tools that influence the human central nervous system, especially the brain, to achieve a desired effect.  The Economist defines neurotechnology as any "technology that makes it possible to manipulate the brain."

Instruments and techniques that are used to in developing neurotechnology include -- brain imaging systems (fMRI, PET, EEG), biochips (DNA microarrays, protein chips, RNA chips), genetic engineering techniques, cellular implantation, electronic stimulation

Products of neurotechnology include -- pharmaceuticals (psychopharmaceuticals), psychological conditioning, neurofeedback, magnetic stimulation

Technological trends making neurotechnology possible -- nanotechnology, information technology, biotechnology, neuroscience