An important factor in effectively treating any illness is identifying it early, and this also applies to Alzheimer’s disease. Fortunately, there is promising news that soon diagnosing Alzheimer’s may be as easy as taking a blood test.
Recent advancements in blood testing include the examination of p-tau217, an atypical protein that has the potential to identify Alzheimer’s disease with 90% accuracy. This is a significant improvement compared to the current detection rates, as a study revealed that primary care physicians could only identify 61% of cases accurately. Although the Food and Drug Administration (FDA) has not sanctioned these new tests, they represent promising progress that could revolutionize Alzheimer’s diagnosis. stocks related to healthcare that have established therapies for Alzheimer’s disease: Eli Lilly ( LLY 5.49% ) and Biogen ( BIIB -1.01% ) .
Eli Lilly
Eli Lilly holds the title of being the biggest healthcare stock globally, valued at over $800 billion in the market. Investors have shown optimism towards the company due to the success of its well-liked medications for weight loss and diabetes, namely Zepbound and Mounjaro. Additionally, the company has a potential Alzheimer’s treatment in its pipeline, named Kisunla, which recently received approval from the FDA.
Clinical trials demonstrated that the drug can reduce the advancement of Alzheimer’s disease by 35% within 18 months. It is projected by analysts that the pharmaceutical company could earn up to $5 billion in revenue from this drug at its maximum potential. However, if a larger number of patients can access the treatment through early diagnosis, the revenue generated could surpass this estimate. Eli Lilly also has additional trials underway for various Alzheimer’s treatments, indicating potential for further expansion and success in this field.
Eli Lilly benefits from having significant financial resources, which provide the company with the flexibility to pursue various growth prospects. Over the last four years, Eli Lilly has consistently earned a profit of at least $5 billion annually. For investors interested in a top healthcare stock poised to capitalize on advancements in early Alzheimer’s diagnosis, Eli Lilly could be a compelling investment choice.
Biogen
Healthcare investors looking for a more economical choice may consider investing in Biogen, a pharmaceutical company. Biogen has received approval for two treatments for Alzheimer’s disease – Leqembi and Aduhelm. Despite initially obtaining approval, Biogen has decided to discontinue Aduhelm due to the controversy surrounding its approval. Leqembi has demonstrated greater effectiveness as a treatment option.
Leqembi was granted FDA approval over a year ago through an accelerated approval process. A recent study revealed that the treatment provided benefits to patients over a three-year period. Unfortunately, discontinuing the treatment may lead to a deterioration in the patient’s condition, suggesting that the medication may need to be taken indefinitely. Biogen and its collaborator in development… Eisai A monthly variant of Leqembi is in development with the aim of obtaining approval by January. Additionally, efforts are underway to create a weekly injectable form that patients can self-administer at home. Presently, Leqembi requires intravenous administration every two weeks, typically at hospitals or infusion therapy centers.
Biogen’s market capitalization is currently at $29 billion, making it potentially appealing to investors who focus on value. Its valuation is at a modest 13 times its earnings. projected future income The stock is considerably more affordable compared to Eli Lilly, which is trading at 57 times its projected earnings.
On the flip side, investing in Biogen comes with higher risk due to its heavy reliance on the success of its Alzheimer’s treatment. The company has faced challenges in increasing its revenue, with a 27% decline in total revenue over the past three years to $9.8 billion. However, if there is a larger group of patients who can be helped by Leqembi, Biogen might present an undervalued investment opportunity in the future.
