The neglected aspect of women's health could potentially generate a $350 billion market.

After years of being ignored, menopause has entered the public conversation.

Despite the increased chatter among celebrities about symptoms, there is still a long way to go in treating them, and many opportunities for companies to step in and fill the gap.

The estimated global market potential for treating symptoms is between $120 billion and $350 billion, according to the management consultant.

Menopause and perimenopause affect more than 450 million women worldwide, with symptoms including hot flashes, anxiety, weight gain, vaginal dryness, mood changes, sleep problems, and changes in skin conditions.

The demand for menopause products and services is significant and unfulfilled, according to Anna Pione, a McKinsey partner who heads the firm's wellness research.

'Exciting' developments

For many years, hormone therapy was the standard treatment for menopause. However, in 2002, a study by the Women's Health Initiative revealed that estrogen plus progestin therapy increased a woman's risk of developing breast cancer and heart disease.

Dr. Stephanie Faubion, director of the Mayo Clinic Center for Women's Health and medical director of the nonprofit Menopause Society, stated that many women stopped hormone therapy due to their own fear or their doctors' fear, or a combination of both.

Faubion stated that it left many women without any management whatsoever.

Studies suggest that the advantages of HRT may outweigh the risks for women under 60 or less than 10 years from their menopause diagnosis.

"Dr. Karen Adams, a Stanford University professor and director of the school's menopause and healthy aging program, stated, "Our understanding has evolved, which is thrilling, but women are still struggling to locate assistance.""

Investing in the theme

The largest U.S. publicly-listed company in the space is , which offers a range of products such as Duavee and Premarin, hormone therapy treatments for hot flashes and osteoporosis prevention.

The company, which went public in May 2022 through a SPAC deal, has a market cap just north of $400 million and makes customized bioidentical hormone pellets to address hormone imbalances.

Biote has a buy rating from Jefferies analyst Kaumil Gajrawala, who stated that hormone treatment is an area of focus that is "really bubbling up to the surface."

Biote's hormone pellets, customized through blood tests, are its largest market during menopause, he stated.

"It provides a consistent delivery, eliminating concerns about compliance and forgetting or remembering days, ultimately resulting in feeling better."

There is also a race to find non-hormone treatments.

In May 2021, the Food and Drug Administration approved Tokyo-based Astellas Pharma's Veozah, also known as fezolinetant, to treat hot flashes.

Bayer has a drug in its pipeline called elinzanetant, which has shown to reduce the frequency and severity of hot flashes and improve sleep in two late-stage trials. The company expects to release the results of a third phase 3 study in the coming months and will then submit for approval.

A biopharmaceutical company with a market cap of approximately $100 million is currently conducting a trial for a hormone-free nasal spray to alleviate hot flashes.

Recently, the fertility benefits manager announced its plans to expand into menopause coverage by partnering with private companies Gennev and Midi Health.

Sasha Kelemen, the head of women's health investment banking at Leerink Partners, stated that the focus on menopause as a potential opportunity indicates the potential for growth in this area.

Private innovation

The majority of innovation in menopause is taking place in the private sphere.

"Kelemen stated that menopause is an inevitable experience, similar to death and taxes, and all women will eventually go through it. However, there are currently limited public women's health companies, which Kelemen hopes will change in the future."

In 2022, Kelemen facilitated a purchase of Gennev, a digital menopause care delivery platform, by Unified Women's Healthcare, a Progyny partner. Kelemen declined to reveal the financial details.

Midi Health, a virtual care clinic specializing in perimenopause and menopause, has attracted investor dollars with a $25 million Series A funding round led by Google Ventures in September, bringing its total funding to $40 million.

Despite women's health being underfunded for a long time, menopause is receiving only a small portion of that funding.

Kelemen stated that the growth of dollars does not align with the conversation taking place. Although it is expanding, it is doing so at an insufficient pace and is not proportional to the potential impact and the necessity of the population that requires it.

"Due to hormonal changes during the 10-15-20 age range, women's needs will vary," she stated. "There exists potential for various platforms to thrive."