ETFs
Can Eli Lilly ETFs Rise Following Alzheimer’s Drug Approval?
On June 10, the FDA’s Peripheral and Central Nervous System (PCNS) Drugs Advisory Committee voted 11-0, unanimously recommending approval of the Elie LillyLLY’s Alzheimer’s drug, donanemab. Eli Lilly gained 2.6% last week and 14.1% last month.
The committee said data from clinical studies of donanemab demonstrated substantial evidence of its effectiveness and clinically meaningful slowing of disease progression in patients with early symptomatic Alzheimer’s disease. Lilly is seeking approval of donanemab for the treatment of patients with mild Alzheimer’s disease.
And the competition?
Notably, Biogenic BIIB and its Japanese partner Eisai’s Leqembi were approved last year in the United States to reduce cognitive decline associated with the early stages of Alzheimer’s disease. Their controversial drug, Aduhelm, was approved by the FDA in 2021.
However, in January 2024, Biogen halted the development and marketing of Aduhelm, as the drug failed to generate significant sales due to lack of access to Medicare beneficiaries.
Prothena Company PRTA, AC Immunity and Cassava Sciences SAVA is also developing therapies for Alzheimer’s disease. Prothena is also developing a dual Aβ-tau vaccine, PRX123, with potential for the prevention and treatment of Alzheimer’s disease.
Will Donanemab be successful?
Investors should note that the treatment may cause a brain swelling side effect called amyloid-related imaging abnormalities (ARIA). Most analysts now expect donanemab to gain FDA approval with a broad label and an ARIA warning.
Leqembi’s label also has a similar warning for ARIA. However, the FDA has not set a PDUFA date for a decision on donanemab, with the initial decision delayed due to the needs of the advisory meeting.
Until Leqembi was approved, medications available on the market only treated the symptoms of the disease. Several companies have failed to develop safe and effective therapeutic options to treat this deadly brain disease, despite significant investments.
Business Outlook
According to Market.us, the global Alzheimer’s disease therapeutics market size is expected to reach $30.8 billion by 2033, with a promising CAGR of 18.8% from 2024 to 2033. Nord dominated the global Alzheimer’s disease therapeutics market with a significant revenue share of 42.5%. . Asia Pacific is currently expected to experience exponential growth.
Focus on Lilly-Heavy ETFs
While investors looking to play on the approval of the Alzheimer’s drug can place bets on Lilly stock in particular, the shares can be leveraged under the basket approach. Lilly’s heavyweight ETFs include iShares US Pharmaceuticals ETF IHE (with 26.09% of the weight), Roundhill GLP-1 and Weight Loss ETF (with 20.88% of the weight), Horizon Kinetics Medical ETF MEDX (with 16.48%) and Amplify Weight Loss Drugs and Treatments ETF THNR (weight 16.09%).
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Biogen Inc. (BIIB): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
Prothena Corporation plc (PRTA): Free Stock Analysis Report
iShares US Pharmaceuticals ETF (IHE): ETF Research Reports
Cassava Sciences, Inc. (SAVA): Free Stock Analysis Report
Horizon Kinetics Medical ETF (MEDX): ETF Research Reports
Amplify Weight Loss Drug & Treatment ETF (THNR): ETF Research Reports