Dementia-related Psychosis Market Gearing Up for Outstanding Expansion at a CAGR of 26.2% During the Forecast Period (2026-2036) | DelveInsight

The dementia-related psychosis market is anticipated to increase during the forecast period (2026–2036), owing to the rising burden of dementia, the emergence of novel therapies such as ACP-204 (Remlifanserin) (Acadia Pharmaceuticals), Xanomeline–trospium chloride (COBENFY) (Bristol Myers Squibb), Zervimesine (CT1812) (Cognition Therapeutics), and others, and increasing healthcare spending across the 7MM.

LAS VEGAS, Aug. 3, 2026 /PRNewswire/ -- Recently published Dementia-related Psychosis Market Insights report includes a comprehensive understanding of current treatment practices, dementia-related psychosis emerging drugs, market share of individual therapies, and current and forecasted market size from 2022 to 2036, segmented into leading markets [the United States, the EU4 (Germany, France, Italy, and Spain), the United Kingdom, and Japan]. 

Dementia-related Psychosis Market Summary

• The market size for dementia-related psychosis was found to be USD 690 million in the 7MM in 2025.
• The United States accounted for the largest dementia-related psychosis treatment market size, approximately 77% of the total market size in the 7MM in 2025, compared to other major markets, including the EU4 countries (Germany, France, Italy, and Spain), the United Kingdom, and Japan.
• DRP reported more than 5 million diagnosed prevalent cases in the 7MM in 2025. In the US, more than 2 million cases were reported, of which Alzheimer's disease dementia reported the maximum number of cases.
• Leading dementia-related psychosis companies, such as Acadia Pharmaceuticals, Bristol Myers Squibb, Cognition Therapeutics, Maplight Therapeutics, Johnson & Johnson, AgeneBio, and others, are developing new dementia-related psychosis treatment drugs that can be available in the dementia-related psychosis market in the coming years. 
• The promising dementia-related psychosis therapies in clinical trials include ACP-204 (Remlifanserin), Xanomeline–trospium chloride (COBENFY), Zervimesine (CT1812), ML-007C-MA, ITI-1284, Levetiracetam low-dose (AGB101), and others.

Discover dementia-related psychosis new treatment @ https://www.delveinsight.com/report-store/dementia-related-psychosis-market

Key Factors Driving the Growth of the Dementia-related Psychosis Market 

• Rising Prevalence of Dementia and Dementia-related Psychosis: The growing aging population has led to a significant increase in dementia cases worldwide, resulting in a larger pool of patients experiencing psychotic symptoms such as hallucinations and delusions. This expanding patient population is a major driver of market demand.
• Introduction of NUPLAZID: The emergence of NUPLAZID marks a significant milestone in DRP treatment, offering a specialized approach for patients with Parkinson's, Alzheimer's, and Lewy Body-related psychosis. By selectively targeting 5-HT2A receptors without blocking dopamine, it addresses the urgent need for a therapy that treats psychotic symptoms while preserving motor stability.
• Advancements in Targeted Drug Development: Pharmaceutical companies are increasingly focusing on novel mechanisms of action, including selective serotonin receptor modulation and other CNS-targeted approaches. These innovations are expanding the treatment landscape and improving therapeutic outcomes.
• Growing Clinical Research and Pipeline Activity: A robust pipeline featuring multiple investigational therapies such as ACP-204 (Remlifanserin) (Acadia Pharmaceuticals), Xanomeline–trospium chloride (COBENFY) (Bristol Myers Squibb), Zervimesine (CT1812) (Cognition Therapeutics), ML-007C-MA (Maplight Therapeutics), ITI-1284 (Johnson & Johnson), Levetiracetam low-dose (AGB101) (AgeneBio), and others in various stages of clinical development is strengthening market prospects. 

Download the report to understand the top emerging dementia-related psychosis drugs @ Dementia-related Psychosis Clinical Trials

As per Aparna Thakur, Project Manager of Forecasting at DelveInsight, ACP-204 may emerge as a clinically meaningful adjunctive therapy if ongoing trials demonstrate robust symptom improvement alongside sustained safety. 

DelveInsight's Dementia-related Psychosis Market Report delivers executive-level intelligence on the evolving market landscape, integrating epidemiology, treatment practices, competitive dynamics, emerging therapies, and market forecasts across the major markets through 2036. Built on a rigorous methodology combining comprehensive secondary research, primary interviews with key opinion leaders and industry experts, and proprietary patient-based forecasting models, the report provides a reliable foundation for strategic planning. Designed for pharmaceutical and biotech executives, it enables informed decisions on portfolio strategy, business development, market entry, investment prioritization, and commercial planning. 

Dementia-related Psychosis Market Analysis

• Treatment of dementia-related psychosis involves limited approved options, with reliance on off-label antipsychotics such as risperidone and quetiapine, alongside non-pharmacological approaches, though safety concerns and variable efficacy remain key challenges.
• Among the approved options, NUPLAZID (pimavanserin) from Acadia Pharmaceuticals represents a targeted treatment by selectively modulating serotonin 5-HT2A receptors.
• The DRP pipeline is steadily expanding with a range of mechanism-based therapies, including Remlifanserin (ACP-204), COBENFY (KarXT), Zervimesine (CT1812), ML-007C-MA, and other investigational candidates. 
• These therapies target diverse pathways, such as serotonergic, cholinergic, synaptic, and neuromodulatory mechanisms, reflecting continued innovation that could reshape the future treatment landscape for DRP.

Dementia-related Psychosis Competitive Landscape

Some of the dementia-related psychosis drugs under development include ACP-204 (Remlifanserin) (Acadia Pharmaceuticals), Xanomeline–trospium chloride (COBENFY) (Bristol Myers Squibb), Zervimesine (CT1812) (Cognition Therapeutics), ML-007C-MA (Maplight Therapeutics), ITI-1284 (Johnson & Johnson), Levetiracetam low-dose (AGB101) (AgeneBio), and others.

Acadia Pharmaceuticals' ACP-204 (remlifanserin) is an investigational, highly selective 5-HT2A receptor inverse agonist designed to treat psychosis associated with Alzheimer's disease. By specifically targeting serotonergic signaling pathways involved in neuropsychiatric symptoms, the therapy is intended to deliver effective symptom relief while offering a more favorable safety and tolerability profile than conventional antipsychotic treatments.

AgeneBio's low-dose levetiracetam is an oral investigational therapy under evaluation for individuals with cognitive impairment and neurodegenerative disorders. The treatment selectively acts on synaptic vesicle protein 2A (SV2A), an important regulator of neurotransmitter release, to normalize neuronal network activity and reduce hippocampal hyperactivity, a hallmark of cognitive decline and disease progression. Administered at doses below those typically used for epilepsy, the therapy is designed to improve synaptic function and support cognitive performance while limiting treatment-related adverse effects. This mechanism positions it as a promising candidate for addressing early neuronal dysfunction in neurodegenerative diseases, including dementia-related conditions.

AGB101 is currently being evaluated in a Phase II clinical trial for Parkinson's disease-related psychosis. AgeneBio, in partnership with Johns Hopkins University, has secured support from the National Institutes of Health (NIH), including more than USD 7 million in funding to advance its clinical research programs.

Bristol Myers Squibb's COBENFY (KarXT; xanomeline–trospium chloride) is a novel muscarinic antipsychotic under investigation for the treatment of Alzheimer's disease-related psychosis (ADP). Unlike conventional antipsychotics, KarXT selectively activates central M1 and M4 muscarinic acetylcholine receptors without directly antagonizing dopamine receptors, offering a differentiated mechanism that may help alleviate psychotic symptoms while potentially reducing the risk of dopamine-related adverse effects. Administered orally, the therapy is also being evaluated for its potential to address cognitive impairments associated with Alzheimer's disease.

KarXT is currently being assessed in Phase III clinical trials for Alzheimer's disease-related psychosis, with pivotal data anticipated in 2026. Beyond ADP, the developer also intends to investigate the therapy for Alzheimer's disease-related agitation, which could broaden its therapeutic applications within the Alzheimer's disease treatment landscape.

The anticipated launch of these emerging therapies are poised to transform the Dementia-related Psychosis market landscape in the coming years. As these cutting-edge therapies continue to mature and gain regulatory approval, they are expected to reshape the Dementia-related Psychosis market landscape, offering new standards of care and unlocking opportunities for medical innovation and economic growth.

Discover more about which pipeline drugs could transform dementia-related psychosis treatment @ Dementia-related Psychosis Medications

Recent Developments in the Dementia-related Psychosis Market

• In January 2026, top-line results from the Phase II RADIANT study of remlifanserin (formerly ACP-204) in Alzheimer's disease psychosis were anticipated between August and October 2026.
• In December 2025, Bristol Myers Squibb announced the continuation of the ADEPT-2 Phase III trial in Alzheimer's disease psychosis (ADP) following a site-level data review and recommendation from the independent Data Monitoring Committee.

Dementia-related Psychosis Epidemiology Segmentation

The Dementia-related Psychosis epidemiology section provides insights into the historical and current Dementia-related Psychosis patient pool and forecasted trends for the leading markets. In 2025, apathy accounted for the largest share of symptoms-specific diagnosed prevalent dementia cases in Japan, with more than 1 million cases, followed by others, delusions, and hallucinations.

The Dementia-related Psychosis treatment market report proffers epidemiological analysis for the study period 2022–2036 in the leading markets, segmented into:

• Total Diagnosed Prevalent Cases of Dementia 
• Type-specific Diagnosed Prevalent Cases of Dementia
• Type-specific Diagnosed Prevalent Cases of Dementia-related Psychosis 
• Total Diagnosed Prevalent Cases of Dementia-related psychosis
• Symptoms-specific Diagnosed Prevalent Cases in Dementia
• Dementia Related Psychosis Treated Cases

Scope of the Dementia-related Psychosis Market Report

• Dementia-related Psychosis Patient Population Forecast
• Dementia-related Psychosis Therapeutics Market Size
• Dementia-related Psychosis Pipeline Analysis
• Dementia-related Psychosis Market Size and Trends
• Dementia-related Psychosis Market Opportunity
• Dementia-related Psychosis Market Unmet Needs
• KOL's Views on Dementia-related Psychosis
• Dementia-related Psychosis Market Access and Reimbursement

Table of Contents

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