- SA private hospital group Life Healthcare's share price skyrocketed on Tuesday after a breakthrough Alzheimer treatment was approved by US authorities.
- The market believes SA hospital group Life Healthcare can benefit after the US approved a breakthrough Alzheimer treatment - the first new treatment in two decades.
- Given that an Alzheimer's treatment is now available, this may mean that there will be an increased focus on getting patients diagnosed - boosting demand for the Life's product.
South African private hospital group Life Healthcare's share price skyrocketed on Tuesday after a breakthrough Alzheimer treatment was approved by US authorities.
After an initial rally of almost 20%, the share was last 7% higher at R25.60 on the JSE.
Biogen’s Aducanumab treatment is the first medicine approved to treat Alzheimer’s disease in 20 years.
It has been shown to reduce amyloid beta plaques in the brain, which is likely to slow brain degeneration and the progression of the disease, Life Healthcare said in a statement.
The company believes it will benefit from this development, thanks to its German research and development business Life Molecular Imaging (LMI).
LMI developed a molecular imaging tracer, Neuraceq, which can help in the diagnosis of Alzheimer’s disease. NeuraCeq has been approved for use in the US and elsewhere.
Given that there is now an approved treatment for Alzheimer’s, there may be more focus on getting patients diagnosed – and this could boost the use of NeuraCeq.
'LMI’s FDA-approved beta-amyloid imaging tracer NeuraCeq is used to diagnose Alzheimer’s disease by highlighting the beta-amyloid deposits in the brain. Aducanumab’s approval [on Monday] paves the way for LMI to become an integral part of the diagnostic pathway, prior to patients starting treatment for Alzheimer’s disease," Life Healthcare said in a statement.
Life Healthcare’s group CEO Peter Wharton-Hood said the FDA’s decision was significant given that 35 million people across the globe suffered from Alzheimer’s disease.
"As we expand and grow our business into new markets, our purpose will become increasingly important to more people in more geographies," said Wharton-Hood.
Life Healthcare formed the LMI business in 2012 after the acquisition of Bayer Pharma AG’s molecular imaging research and development portfolio.