Which Alzheimer's Fighter Will Benefit From a Boost in Federal Funding?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The National Institute on Aging recently announced plans to provide the Banner Alzheimer's Institute with $33 million to fund a clinical trial examining Alzheimer's disease in a specific subset of predisposed patients. The study will track disease onset in healthy subjects ages 60-75 with two copies of the gene for ApoE4, a protein that increases the risk of late-onset Alzheimer's by 10-fold. The longitudinal approach hopes to be the first to identify a significant preventative effect in the highest risk patients.

But here's the kicker: The drug to be examined hasn't been selected yet! We know that the treatment will be targeted at amyloid beta, a protein that aggregates in the brain to form the plaques thought to underlie the disease (though many argue against this hypothesis).  So, with that in mind, which sprinter in the race for an Alzheimer's blockbuster will be the recipient of some nice federal aid? And how is this trial going to be any different than the disappointing trials so far?

A new kind of trial
Patients, scientists, and investors have been foiled time and time again by this debilitating neurological disease. The dearth of impressive clinical data could be the result of many factors. One factor -- and the one that this project addresses -- is the timing of treatment relative to the disease onset. Most trials have been designed to examine the slowing or reversal of cognitive decline in symptomatic patients. In those cases, much of the underlying neurological damage has already occurred. This trial will be a longitudinal study of preventative treatment in high-risk individuals, to correct the pathology of Alzheimer's before neurological damage and cognitive decline.

The candidates
There are several Alzheimer's treatments floating around in clinical trials or in the wastebaskets of R&D directors. The most advanced of these drugs is Eli Lilly's (NYSE: LLY  ) solanezumab -- but advanced doesn't necessarily mean successful. Solanezumab is a monoclonal antibody that binds to amyloid beta, with the intent of clearing the protein before it can form debilitating plaques. Solanezumab failed two of its phase 3 clinical trials, but did show some slowing of cognitive decline in patients with mild Alzheimer's. Lilly is currently gearing up another phase 3 trial in early stage patients and could really use some good results after a string of disappointments recently.

Lilly isn't the only company with an underwhelming amyloid beta immunotherapy. Baxter International (NYSE: BAX  ) saw its Gammagard miss primary endpoints in phase 3 trial data reported in May. Like solanezumab, though, data mining revealed some effect in a specific subset of patients with moderate disease. Gammagard is approved for inflammatory diseases, so it hasn't been completely shelved yet. Pfizer (NYSE: PFE  ) and Johnson & Johnson (NYSE: JNJ  ) did shelve their bapineuzumab, which failed multiple phase 3 trials both in patients with and without the ApoE4 gene.

In addition to the monoclonal antibody approach, several clinical programs are investigating the utility of blocking the enzyme involved in the processing of amyloid beta, BACE. By blocking BACE, a competing enzyme called alpha-secretase chops up the precursor protein and prevents amyloid beta production.

Lilly's BACE inhibitor LY2886721 was another of its recent failures. Phase 2 trials were halted after routine blood tests suggested that the drug was causing liver damage. This leaves the door wide open for Merck's (NYSE: MRK  ) MK-8931 to take the lead.  MK-8931 wrapped up a Phase 1b trial this summer, and it showed a dose-dependent reduction in cerebro-spinal amyloid beta in patients with mild to moderate Alzheimer's. I wouldn't put too much hope in Merck's drug yet, though -- the trial didn't examine clinically relevant cognitive outcomes. While phase 2/3 studies will examine these clinical outcomes, I'd bet on it suffering the same fate as bapineuzumab and solanezumab.

Another way to go
I have been critical of the industry in the past for its single-minded approach to Alzheimer's. With so many failed amyloid beta-directed immunotherapies, I think the NIA could have chosen to allocate this money to treatments off the beaten path.  Eli Lilly is one company leading the way toward a new approach with its recent focus on tau tangles, another protein aggregate thought to underlie the Alzheimer's pathology. Lilly recently purchased two tau tangle imaging markers to facilitate R&D and reserves the right to commercialize them for some R&D revenues.

The bottom line
The $33 million grant is pennies in the deep pocketbooks of the big pharma contenders, but the federal aid represents more than financial support; it represents a final push to settle the amyloid beta debate. If this trial fails to find a preventative effect in highest-risk patients, you can expect the field to shift in new directions. If it uncovers a clinically relevant effect, it will be a golden opportunity for patients and shareholders.

Two more companies revolutionizing health care
Alzheimer's has been really difficult to treat, but the industry has made huge strides in treating cancer.  The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In The Motley Fool's brand-new FREE report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.

Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 30, 2013, at 7:10 PM, fwrobinson wrote:

    Prana Biotechnology's PBT2 is "another way to go" that still adheres to supporting the Amyloid-Beta theory, albeit also proving out the metals homeostasis theory that continues to receive more and more independent research support.

    This choice also has the added benefit of showing promise across multiple Neuro-degenerative diseases, so that choice would benefit the rare Huntington's disease patience as well, since Prana's PBT2 is in use in both the IMAGINE Alzheimer's trial, and also the REACH2HD HD trial where they are tabulating results.

    Unlike the so many failures, Prana's safety & tolerability profile seems impressive given the IMAGINE trial was a 1 year trial that recently announced a 1 year open label extension for additional clinical data.

  • Report this Comment On September 30, 2013, at 7:23 PM, fwrobinson wrote:

    P.S. They already demonstrated cognitive and executive function improvement in an earlier 12 week phase I trial, so with the IMAGINE trial concluding in December and results 1Q 2014, confirming these findings in this phase II trial may qualify for acceleration to market at least under the draft FDA guidelines earlier shared in the New England Journal of Science.

  • Report this Comment On October 01, 2013, at 11:14 AM, cablejohn wrote:

    No mention of the CURRENT study by Pfizer?

    Study Evaluating the Safety,Tolerability and Efficacy of PF-04360365 in Adults With Probable Cerebral Amyloid Angiopathy.

    Biological: Ponezumab a Phase 2 study

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2660751, ~/Articles/ArticleHandler.aspx, 9/29/2016 8:14:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:02 PM
BAX $47.92 Up +0.59 +1.25%
Baxter CAPS Rating: ****
JNJ $119.39 Up +0.17 +0.14%
Johnson and Johnso… CAPS Rating: *****
LLY $80.71 Down -0.17 -0.21%
Eli Lilly and Co. CAPS Rating: ***
MRK $63.30 Up +0.73 +1.17%
Merck and Co. CAPS Rating: ****
PFE $33.99 Up +0.16 +0.47%
Pfizer CAPS Rating: ****