Alzheimer's Drug Market Surges as Big Pharma Bets on New Treatments

The pharmaceutical industry has witnessed a dramatic shift in focus towards Alzheimer's disease treatments, with deal values skyrocketing and major players making significant acquisitions. This renewed interest comes in the wake of groundbreaking approvals for monoclonal antibody therapies, marking a new era in the fight against this devastating neurodegenerative condition.

Monoclonal Antibodies Spark Investment Boom

The approval of Biogen and Eisai's Leqembi in January 2023, followed by Eli Lilly's Kisunla in July 2024, has reignited hope for disease-modifying treatments in Alzheimer's. These monoclonal antibodies, targeting amyloid-beta plaques, represent the first therapies capable of potentially slowing or reversing the progression of the disease.

The impact on the industry has been profound. According to a recent report from GlobalData, total M&A deal value in Alzheimer's has surged by 780%, jumping from $2 billion in 2022 to $18 billion in 2024. Alison Labya, business fundamentals pharma analyst at GlobalData, noted, "Large pharmaceutical companies, such as AbbVie and Sanofi, are placing their bets on Alzheimer's disease through high value acquisitions."

Big Pharma Makes Strategic Moves

The approval of these groundbreaking therapies has spurred a wave of strategic acquisitions and partnerships across the industry. Notable deals include:

• AbbVie's $1.4 billion acquisition of Aliada Therapeutics in December 2024, bringing in the Phase I anti-pyroglutamate amyloid beta therapy, ALIA-1758.
• Johnson & Johnson's massive $14.6 billion buyout of Intra-Cellular Therapies, which includes the Phase II oral small molecule ITI-1284 for agitation and psychosis associated with Alzheimer's.
• Sanofi's $470 million acquisition of Vigil Neuroscience in May 2025, reinvigorating the TREM2 pipeline.

These acquisitions reflect a shift in investment priorities towards improving efficacy and safety, as well as exploring targets beyond amyloid-beta.

Challenges and Future Outlook

Despite the enthusiasm, the market penetration of approved therapies has been slower than anticipated. Leqembi reported sales of $22.8 million in May, while Kisunla collected $11 million in the same month. Both Eisai and Biogen have had to lower their sales expectations dramatically.

However, the industry remains optimistic about the future of Alzheimer's treatments. Labya suggests that the future treatment paradigm is likely to be combinatorial, with novel drugs targeting alternative disease mechanisms demonstrating additive efficacy alongside existing therapies.

As the field evolves, pharmaceutical companies are also investing in discovery platforms. GSK, for instance, paid $25 million upfront to access Muna Therapeutics' MiND-MAP platform, with potential payments of up to $147.6 million per target for new Alzheimer's drugs.

The surge in Alzheimer's-focused deals and research initiatives signals a new chapter in the fight against this devastating disease, with the potential to transform patient outcomes in the years to come.