Investor Relations: Diabetes Market

Type 2 Diabetes: Big problem today. Bigger problem tomorrow.

Today, about 20.8 million Americans have diabetes. Of those, around 90-95% suffer from Type 2 diabetes. Also known as adult-onset diabetes, the disease is associated with older age, obesity, family history and physical inactivity. The condition is, however, not limited to the aging population. Its prevalence is increasing among children and adolescents as well. Add to that the overall rising tide of obesity in this country (the leading cause of Type 2 diabetes) and the diagnosed cases of Type 2 diabetes is expected to dramatically increase in the coming decades.

Demographics and economics of Type 2 diabetes in the US
Besides an increase in the number of patients diagnosed with Type 2 diabetes, the Centers for Disease Control (CDC) estimates that the rate of insulin use by this patient population will increase, partly because of the availability of newer, improved forms of basal insulins as well as more intensive guidelines prescribed for Type 2 patients by their physicians.

According to market estimates:

  • Over 30% of Type 2 patients in the US currently use insulin therapy either alone or in combination with oral anti-diabetic (OAD) medications.
  • By 2010, the US Type 2 population using insulin therapy is expected to surpass 8 million, or approximately 38% of diagnosed patients.

The worldwide market for drug and device-based therapies for diabetics is approximately $19 billion and expected to grow 12% annually over the next 5 years. Patients will find that the h-Patch™ system is a less invasive, more convenient and painless insulin delivery system, which will put Valeritas in an ideal position to capture a considerable share of the Type 2 market.

Living with Type 2 diabetes

Many people who get Type 2 diabetes ignore it at first. It's easy to do in the early stages because it shows no obvious symptoms and people generally feel fine. But the disease is insidious, ultimately affecting the function of nearly every major organ in the body, including the heart, nerves, eyes and kidneys.

The key to limiting the damage Type 2 diabetes can cause is to keep the body's blood sugar levels as near normal as possible. But that can be difficult for the affected population to accomplish. Oral medication is the most common treatment prescribed for Type 2 diabetes, and it's easy to forget to take it on a regular basis. Among the older population, resistance to a change in life style and routines often makes compliance with a medical regimen difficult to maintain. And, compliance is essential because the more radically blood sugar levels fluctuate over time, the greater the damage diabetes can inflict on the body.