Neurotech and Psychiatry

by James Cavuoto, editor

The neurotech market for treating psychiatric disorders has proven to be rewarding and elusive at the same time. After some well publicized clinical trial failures of DBS therapies, and an excruciating reimbursement timeline for VNS systems, the implanted neuromodulation device industry is poised to rebound.

Abbott’s TRANSCEND study of DBS for treatment-resistant depression seems likely to succeed where predecessor St. Jude Medical’s BROADEN trial failed a decade ago. Motif Neuro is gaining traction with its minimally invasive DOT device. And newly launched Echo Neurotechnologies will more than likely offer therapies that benefit from founder Eddie Chang’s research in depression.

Meanwhile a host of new noninvasive neurotech therapies are becoming available for treating a range of psychiatric disorders, from OCD to PTSD, to Alzheimer’s disease to autism. Vendors are using magnetic stimulation, tDCS, tACS, focused ultrasound, sensory stimulation, optical stimulation, and software as a medical device as intervention platforms.

The journal Biological Psychiatry recently published a promising report on DBS for treating severe cases of autism spectrum disorder. Severe self-injurious behavior in children with ASD poses a significant risk of permanent physical injury and not all children respond to behavioral therapies. DBS of the nucleus accumbens, the reward-related region of the brain, in children with severe self-injurious behavior and ASD is relatively safe and feasible and may have notable benefits.

Another paper in the journal JAMA Psychiatry presents the case for a new TMS target for treating psychosis resulting from schizophrenia. Investigators from Harvard Medical School and Brigham and Women’s Hospital discovered that psychosis-inducing lesions, although located in different parts of the brain, all connected to a common brain circuit. The peak in that circuit was in the hippocampus, which is believed to be involved in constructing memory and reality.

For neurotech entrepreneurs seeking to penetrate the psychiatric disorders market, there are a number of investment firms and accelerators that are eager to help. The OneMind accelerator offers mentoring and networking plus fundraising introductions and business development advice for mental health startups.

VC firm Satori Capital invests in neurotech firms pursuing mental health solutions, including precision psychiatry, psychedelic medicine, and VR/AR devices for treating depression, anxiety, PTSD, addiction, and cognitive impairment. One of their investments, Ampa Health, recently described their one-day TMS regimen for TRD at the NextMed Health conference in San Diego.

Another VC firm, PsyMed Ventures, is actively investing in mental health startups. In a recent podcast, the firm offered valuable advice to startups in this space looking for funding. The partners stressed the importance of scalable, patient-centric solutions that minimize specialized operational requirements, prioritize user experience, and aim for at-home or outpatient usage. They prefer “platforms that identify disease states or track therapeutic response faster, cheaper, and more accurately than current clinical gold standards.”

All of these developments point to a promising future for neurotech firms targeting psychiatric applications. Entrepreneurs in this space would be wise to take advantage of all of the resources at their disposal.