BACE1 is found embedded within the cell membrane of neurons.
In Alzheimer's patients, BACE1 replaces alpha-secretase cutting APP in a different location which results in the formation beta-amyloid plaques. Beta-amyloid plaques bind together forming insoluble lesions which contribute to the degeneration of the brain.
Inhibition of BACE1 will eliminate the formation of beta-amyloid plaque. Normally APP is snipped by alpha-secretase followed by gamma-secretase which creates peptide fragments that can be used by the body.