Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Alzamend Neuro Stock Is Shooting Higher Today

By Cory Renauer – Jul 23, 2021 at 12:44PM

Key Points

  • Retail investors are cheering after the company reported positive results from a mouse toxicology study with an experimental new Alzheimer's treatment.

Motley Fool Issues Rare “All In” Buy Alert

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There's never been a better time to be a mouse with Alzheimer's disease.

What happened

Shares of Alzamend Neuro (ALZN 3.36%), a biotechnology company in the pre-clinical stage, started Friday's trading 44% higher. Investors were thrilled with the positive results of a mouse toxicology study with an experimental new Alzheimer's disease treatment called AL002.

But the early gains have steadily faded away as investors realize today's announcement isn't terribly important. The stock was up just 6.5% as of 11:46 a.m. on Friday.

So what 

Alzheimer's disease (AD) affects more than 6 million Americans, and this number is on the rise. The only treatment approved to slow the progression of this fatal disease hasn't actually proved itself effective at improving patient outcomes, so demand for new drugs like AL002 is still sky-high.

Scientists at work in a laboratory.

Image source: Getty Images.

Alzamend Neuro shares are rising today in response to a positive toxicology report from a mouse study with AL002. The report basically says they couldn't find any signs of brain damage caused by AL002 90 days after the mice received their last dose.

Bad mouse toxicology reports can derail programs before they begin, but they aren't worthy of a press release. Demand for AD drugs is so high that any positive news regarding experimental treatments can send related stocks through the roof.

Now what

AL002 isn't a drug itself. It's a patented method of withdrawing white blood cells that will mature to become dendritic cells and exposing them to amyloid-beta before reintroducing them into patients. It's supposed to make the immune system extra vigilant about cleaning up amyloid fragments before they can aggregate into plaques associated with AD.

Not finding evidence of neurological damage among mice after treating them with AL002 is a necessary step on the development path. But it tells us nothing about what effect, if any, it will have on AD patient outcomes.

If Alzamend eventually proves that AL002 can stop AD patients from worsening, the stock would provide enormous returns. Until we see some evidence that says this company's unusual approach actually works for people, it's probably best to watch this ultra-risky biotech stock from a safe distance.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alzamend Neuro, Inc. Stock Quote
Alzamend Neuro, Inc.
ALZN
$1.23 (3.36%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.