Innovation

GLOBAL INVESTOR FOCUS Innovation — 46
Alzheimer’s
Wyeth
WYE US
Wyeth offers an attractive combination of
solid core product growth and an interesting
new product pipeline.
Eli Lilly
LLY US
BUY
BUY
Eli Lilly’s industry-leading pipeline, low exposure
to patent expirations and improving
operating margins support our positive stance.
Myriad Genetics
MYGN US
BUY
Credit Suisse’s BUY rating is for long-term investors
looking for risky stocks. Phase 3 data on
Alzheimer’s drug Flurizan is expected in 2008.
Neurochem
NRM CN
HOLD
Caution is advised with this stock, as unpredictable
data from Alzhemed studies, due Q2
2007, will have a big impact on the share price.
Promising treatments
Drug name Company Ticker Mechanism Phase
Alzhemed Neurochem NRM CN Prevent formation of
amyloid deposits
Flurizan
Myriad
Genetics
MYGN US
Bapineuzumab Wyeth and Elan WYE US and
ELN US
Decreases production of
amyloid
Clear amyloid deposits 2
LY2062430 Eli Lilly LLY US Possibly influences amyloid
production
LY450139 Eli Lilly LLY US Blocks amyloid-making
enzyme
3
3
2
2
Alzheimer’s disease (AD) affects more than 25 million people
worldwide. According to a Johns Hopkins University study published
this year, AD prevalence will quadruple by 2050, leaving
one in 85 people worldwide living with the disease. With no means
to prevent the disease, no cure and poor methods of treatment,
the picture looks bleak. Last month, US lawmakers proposed a
package of legislation aimed at enhancing patient care, describing
AD as the “number one health crisis of the 21st century.” There
are strong grounds for concern, as the situation could become a
severe economic burden to society, as patient care already costs
an estimated USD 91 billion per year. That makes it the third most
costly illness in the USA after heart disease and cancer.
To gain precious time, it is better to detect the disease early.
Limitations in achieving such early diagnosis are currently a huge
hurdle in the race to treat patients. Existing methods to screen for
AD are based on cognitive tests, which sometimes lead to misdiagnosis.
More refined methods such as lab tests are being developed
that detect molecular markers of AD in spinal and cerebral
fluid. Promising new molecular approaches in detection
include a nanotechnology-based diagnostic tool being developed
by Applied NeuroSolutions Nanosphere.
Research efforts are primarily focused on the aberrant amyloid
plaque deposits formed in the brain of AD patients. Current
drugs only treat the symptoms of AD, but do not block the molecular
basis of plaque formation and progression. Japanese scientists
recently developed an oral vaccine for AD which has proved
effective in monkeys. The team may move to clinical trials this
year. Professor Tabira, the director of the research institute, explains:
“It seems likely that [the] vaccine prevents or delays the
onset of AD.” He also says that they are currently seeking large
companies for a partnership.
Drugs on the market treating the symptoms of AD include Aricept
from Pfizer, Exelon from Novartis, Namenda from Forest
Labs, and Razadyne from Johnson & Johnson. A new treatment
concept could be introduced with the launch of the so-called disease-modifying
drugs (DMDs) from 2009 onwards. The key mechanism
behind DMDs involves blocking the underlying biological
causes of AD. A number of drug companies have come up with
interesting data from late-stage clinical trials in this new paradigm.
Of particular interest are large companies such as Wyeth and Eli
Lilly. Smaller companies such as Myriad Genetics and Neurochem
are conducting clinical studies for promising drugs that directly
attack the underlying basis of the disease, not just the symptoms.
In the case of patients for whom all available pharmaceutical
options have failed, brain-stimulation technology shows significant
potential. One very promising avenue for influencing the living
brain has emerged in the past few years, based on the use of
pulsed magnetic fields. This novel noninvasive magnetic field
technique is called transcranial magnetic stimulation (TMS). The
technique employs head-mounted wire coils that send strong but
very short magnetic pulses directly into specific brain regions,
thus safely and painlessly inducing tiny electric currents in a person’s
neural circuitry. TMS is currently being tested for the treatment
of a number of neurological diseases, including AD. The
companies actively conducting TMS research in this area are
Neuronetics (not listed), Magstim (not listed), Nexstim (not listed)
and Medtronic. Carri Duncan, Tania Dimitrova, Maria Custer Sigrist
Source: Credit Suisse