BFS Talk: Can Financial Engineering Cure Cancer?
Can Financial Engineering Cure Cancer?
A Talk by Andrew W. Lo
Charles E. and Susan T. Harris Professor, MIT
Funding for early-stage biomedical innovation has been declining at the same time that medical breakthroughs seem to be occurring at ever increasing rates. One explanation for this counterintuitive trend is that increasing scientific knowledge can actually lead to greater economic risk for investors in the life sciences. While the impact of the Human Genome project, high-throughput screening, and genetic biomarkers has been tremendously positive for clinicians and their patients, it has also increased the cost and complexity of the drug development process, causing investors to shift their assets to more attractive investment opportunities. In this talk, Prof. Lo will describe how financial engineering--portfolio theory, securitization, credit default swaps, and other tools of modern finance--can be used to reduce the risk and increase the attractiveness of biomedical innovation so as to bring new therapies to patients faster.
Registration for the event will open two weeks prior to Professor Lo's talk.