A Sydney biotechnology company developing a new treatment for Alzheimer’s disease has released positive trial results that could mark a breakthrough in tackling the debilitating illness.

Actinogen Medical says its oral drug, Xanamem, improved memory and cognitive function in patients with early-stage Alzheimer’s disease during a phase-two clinical trial.

The results showed statistically significant improvements compared with a placebo, suggesting the treatment may slow or even reverse cognitive decline.

CEO Dr Steven Gourlay said Xanamem works by blocking the excess production of cortisol, a stress hormone believed to contribute to memory loss and brain cell damage in Alzheimer’s patients.

“Our findings suggest that reducing cortisol levels in the brain can have a meaningful impact on cognitive performance,” Dr Gourlay said.

The company now plans to advance to a larger, phase-three trial involving hundreds of patients across multiple countries.

“This is a major milestone for Actinogen and for the field of Alzheimer’s research globally,” Dr Gourlay said. “While there’s still a lot of work ahead, we’re optimistic that Xanamem could become a much-needed new therapy for people living with Alzheimer’s.”

Alzheimer’s disease affects an estimated 400,000 Australians, with no cure currently available. Existing treatments offer limited symptom relief and do not halt the progression of the disease.