Financial engineering solution to drug discovery

How do you solve the problem of funding drug research, when the investment costs are so high and so risky? In the inspiring TED talk Roger Stein explains how together with colleagues they applied financial engineering practices to the problem. By designing a mutual fund for drug research, and structuring it in such a way so that it gives good annual returns, they placed drug discovery at the “sweet spot” of capital market investors, particularly institutional investors such as pension funds.

Roger Stein is the chief analytics officer at State Street Global Exchange, a senior lecturer in finance at MIT’s Sloan School of Management and a research affiliate at the MIT Laboratory for Financial Engineering.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s