Stock market returns and clinical trial results of investigational compounds: an event study analysis of large biopharmaceutical companies.

ABSTRACT:

Background

For biopharmaceutical companies, investments in research and development are risky, and the results from clinical trials are key inflection points in the process. Few studies have explored how and to what extent the public equity market values clinical trial results.

Methods

Our study dataset matched announcements of clinical trial results for investigational compounds from January 2011 to May 2013 with daily stock market returns of large United States-listed pharmaceutical and biotechnology companies. Event study methodology was used to examine the relationship between clinical research events and changes in stock returns.

Results

We identified public announcements for clinical trials of 24 investigational compounds, including 16 (67%) positive and 8 (33%)

SUBMITTER: Hwang TJ 

PROVIDER: S-EPMC3737210 | biostudies-literature | 2013

REPOSITORIES: biostudies-literature