About This Course

Funding for fundamental science and early-stage translational medicine is becoming scarcer, and at the worst possible time—when we now have the scientific and engineering expertise to make major breakthroughs in our understanding of the molecular basis of many deadly diseases and how to treat or prevent them. The dearth of funding for translational medicine in the so-called “Valley of Death” can be attributed to several factors, but a common thread among them is increasing financial risks in the biopharma industry and greater uncertainty surrounding the economic, regulatory, and political environments within the biomedical ecosystem. Increasing risk and uncertainty inevitably leads to an outflow of capital as investors and other stakeholders seek more attractive opportunities in other industries.

By applying financial techniques such as portfolio theory, securitization, and option pricing to biomedical contexts, more efficient funding structures can be developed to reduce financial risks, lower the cost of capital, and bring more life-saving therapies to patients faster. By taking this course, students will gain the background, resources, and framework to influence the healthcare industry.

Learning Objectives

• Basic financial analysis for the life-sciences professional
• The historical financial risks and returns of the biopharma industry
• Capital budgeting for pharmaceutical companies
• Drug development and clinical trials
• The mechanics of biotech startup financing
• Biomedical megafunds and drug royalty investment companies
• Healthcare analytics and machine learning
• Pricing, value, and ethics

Format of this Course

This course includes lectures and practice problems.