On July 2, the U.S. Food and Drug Administration (FDA) approved Eli Lilly and Company's (NYSE: LLY) Alzheimer's drug Kinsula for commercialization in the U.S. market. This decision will significantly impact the U.S. healthcare industry, offering more treatment options for nearly 7 million Alzheimer's patients nationwide.

On the same day, Eli Lilly's stock price reached $906 per share, marking an increase of over 50% since the beginning of 2024.

Kinsula will directly compete with Biogen, which received FDA approval for its Alzheimer's drug Leqembi in the summer of 2023.

Both Leqembi and Kinsula are similar in Alzheimer's treatment, not constituting absolute cures and carrying potential side effects including brain swelling and bleeding, with potential fatal risks.

For instance, in recent clinical studies, three patients died due to amyloid-related imaging abnormalities (ARIA). FDA's approval of Kinsula was based on its perceived benefits outweighing the risks.

Additionally, last month, Eli Lilly announced a collaboration with OpenAI to develop new drugs using artificial intelligence to combat antibiotic-resistant bacteria.

Brad Lightcap, Chief Operating Officer of Eli Lilly, stated, "Advanced AI holds potential for innovative breakthroughs in healthcare, and we are committed to collaborating with industry leaders to bring tangible benefits to patients."