I understood it to be something like a protein plaque that forms in the brain. The plaque shows up in cross sections looking like tar -- it's surprising the brain can function at all, having been altered that much.
Which makes it all the weirder that this treatment targets inflammation, allegedly. If the drug instantly melted the plaque, opening up the old synapses again, I could believe that. Maybe it does. Medical companies don't always understand exactly why their product works before starting trials.
Also noteworthy: it says a few patients have been on the treatment for several months, implying that the effect might be temporary. No mention of habituation, a la L-DOPA.
I don't know much about the way Alzheimer's impacts the brain to know if it can be reversed, but the brain has been shown to be pretty good at adapting so I wouldn't be surprised if there was a way to cure advanced Alzheimer's. I definitely hope this treatment proves effective in a more serious clinical study.