Is Innovation Priced? Pharmaceutical Evidence from the Stock Market

Authors

DOI:

https://doi.org/10.47611/jsrhs.v13i3.6935

Keywords:

pharmaceutical industry, FinCloud, innovation, intervention analysis, forecasting, event study

Abstract

Recent advances in bioinformatic and public health research have been noteworthy specifically in the cross-sectional and longitudinal analyses of microbiome data. We can naturally extend the latest microbiome analytics to the time series dimension of the pharmaceutical industry in the stock market. Following Gu et al. (2022), we introduce FinCloud, a web-based application for the intervention analysis and forecasting of stock prices. The abnormal returns around the U.S. Food and Drug Administration’s drug approvals show that innovation efforts are priced in the firm value of pharmaceutical companies listed on U.S. stock exchanges.

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Author Biographies

Daniel M. Choi, Ithaca High School

Daniel M. Choi is currently a junior at Ithaca High School, Ithaca, New York. His academic interests are computer science, statistics, and economics. He founded the Brazilian Jiu-jitsu Club at Ithaca High for regular training with Cornell BJJ Club. 

Dr. Seth H. Huang, The Hong Kong University of Science and Technology

Professor Huang is the head of Aris Capital, trading algorithmically (HFT, Market Making, arbitrage) in global assets. He is an A.I. scientist and a quantitative investor and has designed AI systems that were granted patents in America and Greater China. As an investor and educator, he has provided quantitative solutions for institutions using advanced machine learning methodologies.

He was recently the director of AI Applications Research Center at Huawei Technologies, creating AI applications for financial management. His designs have produced stellar results by applying AI and expert insights in financial forecasting, trading and investment fields, which include large-scale financial forecasting, NLP sentiment, algorithmic trading, bond cluster pricing and rare event prediction/ hedging. He was served as the director at Shanghai Advanced Institute of Finance (SAIF) under Shanghai Jiaotong University.

He has given lectures and seminars at top academic institutions including Harvard, MIT, Columbia, NYU, Berkeley, Cornell, UofToronto, UBC and Tsinghua University, among others. He has continued to be an investor and architect quantitative trading funds.

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Published

08-31-2024

How to Cite

Choi, D., & Huang, S. (2024). Is Innovation Priced? Pharmaceutical Evidence from the Stock Market. Journal of Student Research, 13(3). https://doi.org/10.47611/jsrhs.v13i3.6935

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Section

HS Research Articles