Companies dealing with Alzheimer’s – research focus on BACE:
| Company | Ticker | Product type developed | Upside Potential | Sharpe (FY01) |
| Roche | ROG | BACE | 7.4 % | 5.78 |
| Investment case: Roche has stopped the development of RG7 129. Research was in mid-phase. In the case that other developments in its pipeline fail, Roche may consider in-sourcing to stay in the race. | ||||
| Company | Ticker | Product type developed | Upside Potential | Sharpe (FY01) |
| AstraZeneca | AZN | BACE | 1.0 % | 3.93 |
| Investment case: AstraZeneca’s product, AZD3293, has shown good test results, i.e. no liver toxicity, low potential for heart issues. This product is in the mid-late stage of testing. | ||||
| Company | Ticker | Product type developed | Upside Potential | Sharpe (FY01) |
| Eli Lilly | LLY | BACE | 2.8 % | 5.95 |
| Investment case: Eli Lilly stopped the development of LY288721 because of liver toxicity. The research was in mid-phase. The company may now consider in-sourcing to stay in the race. | ||||
| Company | Ticker | Product type developed | Upside Potential | Sharpe (FY01) |
| Merck | MRK | BACE | 3.6 % | 6.07 |
| Investment case: MRK aims at controlling the state of the brain’s plaques with an enzyme called beta-amyloid. This treatment finds its application in the mild-to-moderate stages of Alzheimer’s disease. Given the FDA’s positive stance regarding research progress so far, the company has started a study with the aim of applying the same medicine to early-stage patients. | ||||
| Company | Ticker | Product type developed | Upside Potential | Sharpe (FY01) |
| Eisai | 4523 | BACE | -18 % | 3.68 |
| Investment case: Eisai’s product, E2609, has recently entered the mid-stage test series. This product appears to be lagging the competition (MRK & Astra). | ||||
| Company | Ticker | Product type developed | Upside Potential | Sharpe (FY01) |
| Prana Pharma | PBT | BACE | 18.9 % | 0.72 |
| Investment case: Prana’s research focuses on the association of copper and zinc ions which are key to the shape of the body’s brain plaque. Following the announcement of the PBT2 study failure, the company’s stock declined by more than 70%. The company has now decided to start a new research project, lasting for 12 months, following which a new set of data should be available. For investors this could result in a perfect turn-around situation; nevertheless, the level of risk in this company is well above average. | ||||