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The Potential Opportunity for Diagnostics in Alzheimer's Disease
As the newly approved treatment for Alzheimer's disease becomes more widely sought after, the demand for MRIs, blood tests, and other diagnostics is expected to increase. This presents a significant opportunity for companies like GE Healthcare and Quest Diagnostics. While both companies have acknowledged the potential, they have not provided specific estimates for the size of the opportunity. However, GE Healthcare CEO Peter Arduini believes that this could be a profound growth opportunity in the coming years, especially if companion diagnostic reimbursement and follow-on drugs are involved. Share prices for GE Healthcare have already risen by 31% this year.
Investment in Alzheimer's Disease
Quest Diagnostics has also recognized the potential in Alzheimer's disease and has plans to invest in the space. The company previously mentioned the disease only once during its analyst day presentation, but during its second-quarter call, it was mentioned eight times. Analysts speculate that these companies see value in being associated with Alzheimer's disease treatment, similar to the way companies promoted their involvement in artificial intelligence. This could be a strategic move to boost stock prices.
A New Era for Treatment
With the FDA's full approval of Leqembi and Medicare's decision to cover the treatment, a new era for Alzheimer's disease treatment has begun. Leqembi, developed by Biogen and Eisai, is not a cure for the disease, but it does slow its progression, allowing patients to live independently for longer. The treatment involves intravenous infusions and patients are monitored with MRIs to avoid any life-threatening imaging abnormalities.
The Importance of Early Diagnosis
Early diagnosis of Alzheimer's disease is crucial as patients need to show only mild cognitive impairment to qualify for treatment. This often involves the use of MRIs, CT scans, PET scans, spinal taps, or biopsies. Quest Diagnostics, along with other companies like C2N Diagnostics, are working on developing blood tests that can be used for screening. Quest's test measures the ratio between two peptides associated with Alzheimer's disease.
Logistical Hurdles and Risks
The success of treatments like Leqembi will depend on the number of people who seek them out. However, there are logistical hurdles to overcome, especially for older adults, such as traveling to infusion centers and qualifying for treatment. There are also risks associated with the treatment, including brain swelling and bleeding. Despite these challenges, Leqembi and other potential treatments offer hope to patients who previously had no options.
In conclusion, while the demand for diagnostics in Alzheimer's disease is expected to increase, it is unlikely to have a significant impact on the imaging unit sales. However, companies like GE Healthcare and Quest Diagnostics see the potential in investing in this space. Analysts have varying opinions on the stocks of these companies, with GE Healthcare receiving a neutral rating and Quest Diagnostics being considered a hold.
The Potential Opportunity for Diagnostics in Alzheimer's Disease
As the newly approved treatment for Alzheimer's disease becomes more widely sought after, the demand for MRIs, blood tests, and other diagnostics is expected to increase. This presents a significant opportunity for companies like GE Healthcare and Quest Diagnostics. While both companies have acknowledged the potential, they have not provided specific estimates for the size of the opportunity. However, GE Healthcare CEO Peter Arduini believes that this could be a profound growth opportunity in the coming years, especially if companion diagnostic reimbursement and follow-on drugs are involved. Share prices for GE Healthcare have already risen by 31% this year.
Investment in Alzheimer's Disease
Quest Diagnostics has also recognized the potential in Alzheimer's disease and has plans to invest in the space. The company previously mentioned the disease only once during its analyst day presentation, but during its second-quarter call, it was mentioned eight times. Analysts speculate that these companies see value in being associated with Alzheimer's disease treatment, similar to the way companies promoted their involvement in artificial intelligence. This could be a strategic move to boost stock prices.
A New Era for Treatment
With the FDA's full approval of Leqembi and Medicare's decision to cover the treatment, a new era for Alzheimer's disease treatment has begun. Leqembi, developed by Biogen and Eisai, is not a cure for the disease, but it does slow its progression, allowing patients to live independently for longer. The treatment involves intravenous infusions and patients are monitored with MRIs to avoid any life-threatening imaging abnormalities.
The Importance of Early Diagnosis
Early diagnosis of Alzheimer's disease is crucial as patients need to show only mild cognitive impairment to qualify for treatment. This often involves the use of MRIs, CT scans, PET scans, spinal taps, or biopsies. Quest Diagnostics, along with other companies like C2N Diagnostics, are working on developing blood tests that can be used for screening. Quest's test measures the ratio between two peptides associated with Alzheimer's disease.
Logistical Hurdles and Risks
The success of treatments like Leqembi will depend on the number of people who seek them out. However, there are logistical hurdles to overcome, especially for older adults, such as traveling to infusion centers and qualifying for treatment. There are also risks associated with the treatment, including brain swelling and bleeding. Despite these challenges, Leqembi and other potential treatments offer hope to patients who previously had no options.
Conclusion: A Hot Take on the Impact on New Businesses
The potential opportunity in diagnostics for Alzheimer's disease not only holds promise for established companies like GE Healthcare and Quest Diagnostics, but it also presents an interesting landscape for new businesses to enter. The increased demand for MRIs, blood tests, and other diagnostic tools creates a market niche that entrepreneurial ventures can tap into.
One potential avenue for new businesses is the development of innovative and user-friendly diagnostic tools specifically designed for Alzheimer's disease. This could involve leveraging technological advancements such as machine learning and artificial intelligence to improve accuracy and efficiency in early detection. Creating easy-to-use home testing kits or mobile applications that can assist in screening and monitoring cognitive function could also be lucrative opportunities.
Furthermore, with the logistical hurdles and risks associated with current treatments like Leqembi, there is room for new businesses to address these challenges. Offering convenient and accessible alternatives, such as in-home infusion services or telemedicine solutions for consultations and monitoring, could revolutionize the delivery of Alzheimer's disease treatment.
However, entering this market does come with its own set of challenges. Regulatory requirements, intellectual property considerations, and the need for partnerships with healthcare providers or institutions are just a few obstacles that new businesses would need to navigate. Additionally, competition from established players like GE Healthcare and Quest Diagnostics cannot be disregarded.
Despite these challenges, the potential impact of diagnostics in Alzheimer's disease presents a compelling opportunity for new businesses to make their mark. By taking a proactive approach, embracing innovation, and addressing unmet needs in diagnostics and treatment, entrepreneurs have the chance to contribute to the advancement of Alzheimer's disease care and potentially carve out a successful niche in this evolving healthcare landscape.
Article First Published at: https://www.cnbc.com/2023/07/28/these-health-care-companies-see-opportunity-ahead-from-alzheimers-drug-approval.html
