Alzheimer’s disease costs the global economy $1.3trillion a year. That is the estimate from the Alzheimer’s Society, reflecting the growing burden of care, treatment and lost productivity as populations age.
Add in other neurodegenerative diseases such as Parkinson’s and Huntington’s, which together contribute tens if not hundreds of billions of dollars more, and it is clear why research and development effort and cash is surging into the field.
For investors, backing the company that cracks a commercially viable treatment is no easy feat. But there is a way to gain exposure through the industry’s infrastructure, known in investment circles as the picks and shovels approach.
The phrase, drawn from gold rush lore, refers to the outsized gains often made by suppliers of essential tools rather than by prospectors themselves.
Against that backdrop, a small but promising name in the healthcare segment of London’s Alternative Investment Market has been drawing attention.
IXICO, a neuroimaging specialist, works with major pharmaceutical companies seeking to bring new treatments to sufferers of conditions such as Alzheimer’s, Parkinson’s and Huntington’s.
Financial costs: Alzheimer’s disease costs the global economy $1.3trillion a year, estimates the Alzheimer’s Society
The company built its reputation in Huntington’s disease, supporting researchers in assessing clinical trial results. It is now applying its two decades of expertise more broadly across neurodegenerative disorders.
At the centre of IXICO’s offering is a proprietary platform that uses artificial intelligence to analyse biological signals linked to brain diseases, some of which have been historically difficult to detect.
Researchers using the system can gain early insights into drug performance, determine patient eligibility for trials and monitor disease progression with greater precision. The aim is to enhance decision-making at the earliest development stages.
The platform is used globally by clients seeking not just advanced analytics but also access to IXICO’s in-house scientific expertise.
To date, the company has contributed to several hundred neurological trials and processed more than 250,000 brain scans.
With 80 employees, IXICO has connections to 1,250 imaging centres, has supported 9,000 patients and handled a quarter of a million scans.
Over the past five years, it has worked with 35 clients, including five of the world’s ten largest pharmaceutical research and development firms. At present, it is engaged in 25 studies with 17 clients.
The company has the technology and an expanding client base. To capitalise on this, chief executive Bram Goorden and his team have devised an expansion strategy aimed at extending IXICO’s reach into new areas where its platform can be applied.
Backed by £4million in new investment, the business is targeting fresh contracts that expand further its already-established presence in Alzheimer’s and Parkinson’s.
This push is part of a three-pronged plan to innovate, lead and scale, a strategy it believes could propel the business to profitability in the medium term.
Leadership, as defined by IXICO, means ‘solidifying the group’s presence and impact in the central nervous system precision medicine space by strengthening medical key opinion leadership’.
Put plainly, it wants to prove the utility of its platform to clinicians, researchers and funders, building a network of influential advocates. The power of well-placed opinion leaders should not be underestimated.
From there, the focus is on scaling, accessing global decision makers and expanding beyond clinical trials into go-to-market support and post-market surveillance for approved products.
IXICO is also looking to integrate its technology into platforms used by major data analysis and contract research organisations.
As a result, it believes its addressable market becomes close to five times larger than if it had stayed focused on Huntington’s and other rare neurological diseases alone.
While still early in its broader push, the first signs are encouraging. In a trading update last month, IXICO reported a 26 per cent increase in revenue for the six months to 31 March compared to the same period last year, with turnover of £3.2million. Its order book stands at just over £13million, bolstered by new Alzheimer’s-related projects.
Importantly for investors, the company said its performance leaves it well placed to meet or exceed full-year expectations.
Broker Cavendish noted: ‘We believe IXICO has built a market leading foundation of AI-driven technologies to accelerate contract wins and partnerships to support a return to revenue growth and profitability in the near to mid-term.’
Its price target of 24p a share compares with a current level just over 9p, up 15 per cent over the past month.
After all that, a few cautionary notes. Readers should conduct their own due diligence. I can only tell the story as it has been laid out. Further digging is always advisable.
IXICO is not a one-way bet. Pharmaceutical research and development can be cyclical and is at times influenced by fashion and hype.
Moreover, as shown by Donald Trump’s latest executive order, the drug sector remains vulnerable to political interference, changes that can have long-tail implications for R&D funding.
That said, the contract research space tends to be more insulated from these swings, and IXICO’s diversification strategy further reduces its exposure. So, it is certainly one for the watch list.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .