Trends in Neuroscience Drug Discovery and Development (L.E.K. Consulting)

Summary

• In 2019, neurological diseases led to 108 million DALYs and psychiatric conditions another 138 million DALYs.p.1
• Combined, these illnesses impose a global economic burden of approximately $5 trillion annually.p.1
• The neuroscience pipeline has grown approximately 6% annually over the past five years, with early-stage assets growing around 7% and 8% annually.p.3
• Small molecules still represent roughly 60% of the neuroscience development pipeline.p.4
• Neuroscience M&A in 2023 surpassed $30 billion in deal value, driven by three large acquisitions.p.8
• Johnson & Johnson announced its acquisition of Intra-Cellular Therapies ($15 billion) in early 2025.p.8
• Neurodegenerative assets account for 44% of the neuroscience pipeline.p.12

Key insights

1. BMS-Karuna ($14 billion), AbbVie-Cerevel ($9 billion) and Biogen-Reata ($7 billion) drove 2023 deal value.p.8
2. Between 2010 and 2019, AstraZeneca, GSK, Pfizer and Amgen exited or downsized their neuroscience programs.p.2
3. Surrogate endpoints such as amyloid plaque reduction or fluid biomarkers are being integrated into trial designs to enable earlier readouts.p.7
4. Neuroscience became the second most funded therapeutic area for venture capital behind oncology in 2024.p.8
5. Disease heterogeneity and the blood-brain barrier have historically hindered neuroscience drug development.p.2