The Alzheimer’s disease treatment market is projected to reach US$9.6 billion by 2027. Which stocks should be on investors’ radar?
Alzheimer’s disease treatment stocks are focused on Alzheimer’s disease, a degenerative brain disorder that results in declining memory and thinking skills and typically affects people in their mid-60s.
According to the Alzheimer’s Association, neurons in other areas of the brain also begin to deteriorate as Alzheimer’s disease gets worse, resulting in the loss of basic human functions and overall cognitive impairment.
This condition affects more than 6.2 million people in the US alone; it’s also the most common form of dementia and is the sixth leading cause of death in America. Treatments are available to alleviate Alzheimer’s disease symptoms, but because they do not affect the underlying causes of the neurodegenerative disease, they’re only a bandaid solution.
Therapies approved by the US Food and Drug Administration include: rivastigmine by Novartis (NYSE:NVS); galantamine, developed by Janssen, a division of Johnson & Johnson (NYSE:JNJ); donepezil by Pfizer (NYSE:PFE); and AbbVie's (NYSE:ABBV) memantine.
Although these and other treatments are available, there is no cure for Alzheimer’s disease, and death is often the result for patients as the ailment devastates the brain. Unfortunately, Alzheimer’s disease is rising in prevalence. A report from Research and Markets suggests that the global Alzheimer’s disease market will be worth US$9.6 billion by 2027 as more patients need treatment, and as more investments are made in biomarkers for diagnosis and drug development.
Here the Investing News Network takes a look at a few of the biggest Alzheimer’s disease treatment stocks. Companies are listed in order of market cap from largest to smallest, and all data was current as of October 13, 2022.
Market cap: US$4.54 billion; current share price: US$48.23
As its name suggests, biopharma company Intra-Cellular Therapies is taking an intracellular approach to developing therapies for patients with complex psychiatric and neurologic diseases, including Parkinson’s disease and Alzheimer’s disease.
Intra-Cellular Therapies is currently evaluating ITI-1284-ODT-SL, a deuterated form of lumateperone that comes in an oral disintegrating tablet, in Phase 1 studies, including drug-drug interaction studies. The company expects to commence Phase 2 clinical trials in agitation in patients with probable Alzheimer’s disease in 2023.
Market cap: US$2.85 million; current share price: US$8.33
Germany-based Evotec is a drug discovery and development company that partners with pharma and biotech companies, as well as academic institutions and venture capital companies. Some of these partnerships include in-licensing of drug candidates. Evotec is focused on a broad range of treatment areas, including neuroscience, diabetes, oncology and infectious diseases.
Evotec’s team has significant expertise with Alzheimer's disease and other neurodegenerative diseases. It has an exclusive worldwide licensing agreement with Roche for two compounds in Phase I clinical development for the treatment of Alzheimer's. The world’s largest private pharma company, Boehringer Ingelheim, and the Research Institute of Molecular Pathology in Vienna are working with Evotec in a multi-year collaboration to identify novel targets as potential points of intervention in the treatment of Alzheimer's.
Market cap: US$3.24 billion; current share price: US$71.89
Prothena is a late-stage clinical company has developed a pipeline of novel therapeutics for the treatment of a number of neurodegenerative diseases, including Alzheimer’s disease, AL amyloidosis, ATTR amyloidosis and Parkinson’s disease.
In 2021, Prothena received US$80 million from Bristol Myers Squibb (NYSE:BMY) for the exclusive US license to PRX005; it has the option for worldwide rights following the completion of an already initiated Phase 1 study. In April 2022, the US Food and Drug Administration granted fast-track designation for Prothena’s PRX012, a potential best-in-class anti-amyloid beta antibody therapy currently being investigated in a Phase 1 clinical study for the treatment of Alzheimer’s disease.
This is an updated version of an article first published by the Investing News Network in 2019.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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