Among the cruelest diseases are neurodegenerative like Alzheimer’s. Essentially, the body eats itself, leading to cognitive decline and loss of bodily functions, resulting in death. Fortunately, biotechnology firms have invested heavily in research and development in this space, with a particularly promising one called Neurotez. Specializing in hormone replacement therapy, the company’s many successes have convinced many to invest in Neurotez stock.
At the heart of the bullish narrative is the human impact of the target affliction. According to Alzheimer’s Association, more than 5 million Americans are suffering from the disease. Thirty years later, experts believe that this number will rise to nearly 14 million. Additionally, it’s the sixth leading cause of death in the U.S.
As well, one in three seniors dies with Alzheimer’s or another form of dementia. Statistically, it kills more than breast cancer and prostate cancer combined.
Indeed, you’d be hard-pressed not to know someone who has been impacted by this dreadful condition, inspiring prospective buyers to invest in Neurotez stock. One of those folks is Neurotez president and CEO Nikolaos Tezapsidis. On private equity platform Netcapital’s profile for the company, Tezapsidis shares that his “mother, who died in 2014, suffered from Alzheimer’s.” It’s now his “personal commitment … to develop a cure for Alzheimer’s disease, no matter what this may cost. There is no plan B.”
His words are both heartbreaking yet inspiring. Undoubtedly, it’s a sentiment shared across millions of families in the U.S. and throughout the world. Whether you wish to participate financially in this story or not, it’s an organization we can all root for.
Still, let’s figure out if you should invest in Neurotez stock.
Invest in Neurotez Stock for a Proven Framework
As I mentioned at the top, Neurotez specializes in hormone replacement therapy. Specifically, this involves administration of a naturally occurring hormone called leptin. In a normally functioning system, leptin regulates various metabolic functions. Leptin acts on cell receptors that are located in the brain.
Subsequently, the hippocampus is responsible for “memory formation, cognition and executive function,” attributes which Alzheimer’s disease (AD) severely compromise. Thus, Neurotez theorizes that administration of leptins “will effectively slow or stop the progression of AD and may even preclude or delay the onset of cognitive decline in pre-impairment individuals.”
So far, science has discovered that the production of amyloid beta and the phosphorylation of tau protein are biological indicators of AD. However, compelling research by Neurotez has demonstrated a correlation between leptin administration and improved cognition in tests involving laboratory mice. In short, leptin inhibits the production of amyloid beta and tau protein.
Now, what makes this discovery more intriguing is that the concept of leptin hormone therapy isn’t new. Researchers have analyzed the correlation between leptin and AD for over a decade. Moreover, a recent publication from Neurology.org suggests that preclinical AD patients experience altered leptin levels.
By the researchers’ own admission, the study needs to be fleshed out, including a greater scale test to account for possible differences due to sex and race. Still, for those who want to invest in Neurotez stock, this recent analysis demonstrates that the underlying company is on the right path.
If you wish to take a shot, Neurotez shares are offered at $2 a pop at the Netcapital private equity platform. It has a minimum $2 investment and the deadline to secure a position is August 20, 2020.
Risk Factors to Consider
Although the science is an alluring, novel approach to treating AD, there’s obviously no guarantee of success. Similar to any other platform, private-equity ventures could fail for several reasons. It’s fair to point out that biotech isn’t the most stable market.
Also, before you invest in Neurotez stock, you should know that AD in particular is a brutal segment. Earlier this year, the Washington Post ran a feature, describing the race for an AD cure as “a long and frustrating struggle.”
Even more problematic, big pharmaceutical companies have found themselves adding their names on AD’s victim list. We’re talking industry giants like Eli Lilly (NYSE:LLY) and Roche (OTCMKTS:RHHBY). According to the Post’s Christie Aschwanden:
“These failures aren’t for lack of trying. Instead, they are evidence that the disease and its causes are much more complex than researchers first appreciated. “We were blind to this [complexity]. Things looked simpler than they really are,” says Richard Hodes, director of the National Institute on Aging (NIA).”
Now, let me be 100% fair to those who wish to invest in Neurotez stock. Many of these failures may be due to the wrong inputs. Specifically, biotechs have largely focused on attacking the signature plaques and tangled proteins associated with amyloid beta and tau. With Neurotez, it’s using leptins to inhibit their production. This may turn out to be a pivotal distinction.
However, with any new approach, you have a binary risk: it could either be brilliant or a waste of time.
How to Approach Neurotez
If you’re a conservative investor, you may not want to dive too deeply into Neurotez. Again, the AD market is littered with failures. Furthermore, the failures come from big pharma, an industry segment which can invest billions into R&D.
However, I believe the distinguishing factor here is the science. As management states, it’s a new approach to AD. Plus, the market for Alzheimer’s is huge, and is only getting bigger (unfortunately). Ultimately, enough substance exists to justify taking a measured bet.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks