In her 2001 book “From Alchemy to IPO” Cynthia Robbins Roth cites a Hambrecht & Quist study of biotech stock movement surrounding clinical trial results (Phases I-III) and FDA approvals. The study examined the 12 months prior to and following the “event”.
Is anyone aware of such a study performed elsewhere that is more recent and/or comprehensive (I remember the number of observations being quite small)?
I am confident there is an academic, i-bank, consultancy, or buy-side shop that has done this work somewhere. . .and I don’t want to reinvent the wheel if at all possible.
Any biotech hedge funds out there that would be worth contacting?
I have not waded through these papers below, but so far the results I have found include:
Sharma (2004), “Linking Product Development Outcomes to Market Valuation of the Firm: The Case of the U.S. Pharmaceutical Industry”
Zhang (2006), “Security Market Reaction to FDA Fast Track Designation”
Cohen (2004), “The Fast Track”