Stock price reaction to the drug development setbacks in the pharmaceutical industry

Abramavičius, Silvijus; Stundžienė, Alina; Korsakova, Laura; Venslauskas, Mantas; Stankevičius, Edgaras

doi:10.1007/s40199-020-00349-6

Cited by 4 publications

(3 citation statements)

References 28 publications

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“…If these analyses are provided to interested parties before public release, it could result in significant issues of unfair advantage [6]. Numerous studies [7][8][9][10][11] have highlighted the substantial financial implications of clinical trial results for pharmaceutical companies. To ensure fairness in investment market trading and prevent clinical trial results from unduly affecting market activities, measures are required beyond legal actions.…”

Section: Introductionmentioning

confidence: 99%

A Double-Blind Trial Platform Based on Distributed Ledger Technology

Yeh,

Hsueh,

Liang

2023

Electronics

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In the pharmaceutical research and development process, the third phase of clinical trials involves double-blind trials to mitigate the influence of human subjective awareness on the experimental results and ensure the efficacy and safety of drugs or vaccines. However, conventional double-blind trials are often overseen by a single institution responsible for the entire trial process. Researchers centrally manage data, introducing risks of data loss and tampering. Furthermore, since researchers have full access to all experimental data, there is a potential for premature unblinding and leakage of results to specific individuals, giving rise to bias and conflicts of interest. To address these problems, this paper proposes a distributed-ledger-based double-blind trial platform called “BlindBox”. This platform leverages the immutability and decentralization of distributed ledgers to enhance the security of experimental data. On the other hand, the platform employs smart contracts to restrict personnel’s access to experimental data, coupled with RFID technology to encode and shuffle the experimental drugs discreetly. This ensures that no one can ascertain the pairing between test subjects and drug groups, preventing collusion and result manipulation. When the trial period concludes, smart contracts automatically unblind the results and publish them on the IOTA platform. By utilizing IOTA’s zero-value transactions, the platform reduces the cost of repeated data access and ensures information openness and transparency. This approach prevents deliberate premature unblinding or insider trading stemming from monopolized information. The platform proposed in this study is expected to enhance the credibility and accuracy of double-blind trials while promoting the willingness and convenience of public participation in experiments.

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Section: Introductionmentioning

confidence: 99%

A Double-Blind Trial Platform Based on Distributed Ledger Technology

Yeh,

Hsueh,

Liang

2023

Electronics

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“…The Cornish-Fisher approximation was found to describe a reasonable choice for LVaR predictions, while the extreme value approach results in corresponding LES predictions. A study [22] assessed the impact of drug development failures (DDS) on the share price of pharmaceutical companies, taking into account the company's financial situation, size and price trend before DDS. In conclusion, DDSs have a negative impact on a company's share price, but this risk can be minimized by investors choosing companies that meet certain criteria.…”

Section: Introductionmentioning

confidence: 99%

Underestimating risk leading to the collapse of a market leader in tourism

2022

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The topic of this paper, underestimating risk leading to the collapse of the market leader in tourism, is demonstrated on the example of the British travel agency Thomas Cook, which at one time was one of the oldest and largest travel agencies in the world. The aim of this paper is to analyze the development of the stock prices of Thomas Cook from May 13, 2018 to May 19, 2019 and the factors that had an impact on the share price of this company in the monitored period. The base source of data are the share prices of the travel agency Thomas Cook in the specified period from May 13, 2018 to May 19, 2019 published by MarketWatch. A statistical description of time series is used, a moving average trend line is displayed, and a cause-and-effect analysis evaluating the impact of the published information on the value of Thomas Cook’s stocks is carried out. The general lesson for companies resulting from this contribution is that every negative event, announcement or piece of information has a negative impact on the value of a company’s shares and a collapse could happen even to the leader of a given industry. The collapse of Thomas Cook provides lessons for companies doing business in tourism, so that in the event of a planned merger, a suitable company is selected, the company’s funds are under control and development trends in the field are monitored.

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“…In recent years, the high growth of bio-medical companies has attracted the pursuit of many capitals, including value investors' investment in the bio-medical industry. Silvijus Abramavičius [7] selected the financial data, yield data of pharmaceutical companies, and established a multiple regression model. The results shown that net sales interest rate, operating income growth rate, and the proportion of sales expenses to operating income are significantly related to the investment income of individual stocks.…”

Section: Introductionmentioning

confidence: 99%

Portfolio Construction for Pharmaceutical Industry

Sun

Pang

2021

E3S Web Conf.

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In finance area, portfolio construction is one of the most vital questions since the primary work of modern finance and attract numerous studies. In this paper, we focused on this issue in pharmaceutical industry since the industry is crucial for human beings. We adopted several methods for portfolio construction, like Equal Weighted Model, Monte Carlo simulation, and maximize Sharpe ratio etc. Specifically, five assets are selected. Then based on the Monte Carlo method, we constructed two optimized portfolios in the framework of the efficient frontier, i.e., portfolios with minimum variance and maximum Sharpe ratio. By analyzing the two portfolios, we found that the NVS accounts for the largest proportions in the optimized portfolio. The results in this paper may shed lights for certain investors who invest in pharmaceutical industry.

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Stock price reaction to the drug development setbacks in the pharmaceutical industry

Cited by 4 publications

References 28 publications

A Double-Blind Trial Platform Based on Distributed Ledger Technology

A Double-Blind Trial Platform Based on Distributed Ledger Technology

Underestimating risk leading to the collapse of a market leader in tourism

Portfolio Construction for Pharmaceutical Industry

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