What are anti-amyloid therapies for Alzheimer’s?

Anti-amyloid therapies are medications designed to target and remove amyloid plaques in the brain, which are believed to contribute to Alzheimer’s disease. These treatments, like Eli Lilly’s Kisunla and Biogen’s Leqembi, work by binding to and clearing these harmful protein deposits. The recent FDA approval for safer dosing makes these powerful treatments more accessible to patients by reducing serious side effects like brain swelling, potentially transforming how Alzheimer’s is treated.

Why is the FDA’s approval of safer dosing important for investors?

The FDA’s approval of a safer, gradual dosing schedule is significant for investors because it dramatically improves the commercial outlook for these treatments. By reducing serious side effects like brain swelling, doctors will be more comfortable prescribing these medications and more patients can safely use them. This expands the potential market size substantially, potentially turning these therapies into blockbuster drugs generating billions in revenue for the companies involved.

What does “de-risking” mean in the context of medical treatments?

De-risking refers to reducing the uncertainties and potential problems associated with a medical treatment. When the FDA approves a safer dosing protocol, it “de-risks” the treatment by making serious side effects less likely. For investors, this means reduced regulatory concerns, better chances of widespread adoption, and more predictable revenue streams. The de-risking of Alzheimer’s treatments benefits not just the companies making the drugs, but also those providing related diagnostic tools, monitoring technologies, and research services.

What is a clinical-stage biotech company?

A clinical-stage biotech company is one that has drugs or treatments in clinical trials (testing in humans) but doesn’t yet have products approved for sale. These companies are typically smaller and more focused on research and development rather than marketing and sales. They often represent higher-risk, higher-reward investment opportunities. Several companies in this group, like AVXL and CGTX, are clinical-stage biotechs whose work on Alzheimer’s treatments has gained additional validation from the industry’s recent breakthroughs.

15 handpicked stocks

Safer Alzheimer's Treatments

This carefully selected group of stocks represents companies at the forefront of developing safer, more effective Alzheimer's treatments. The FDA's recent approval of improved dosing for breakthrough therapies has created significant new opportunities in this rapidly evolving field.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 11