Has the COVID-19 Pandemic Led to a Switch in the Volatility of Biopharmaceutical Companies?

Biopharmaceutical companies are critical in developing vaccines, treatments, and diagnostics for COVID-19. Thus, understanding the contagion effects of their stock market can have important economic implications, especially context global financial markets. Due to COVID-19 pandemic, biopharmaceutical companies’ markets may experienced sudden volatility risk changes, which had spillover on other sectors Policymakers take pre-emptive measures stabilize Analyzing makes it even more relevant analyze response four leading pharmaceutical that either developed vaccines against or drugs help fight virus, namely, Pfizer, AbbVie Inc., Sanofi, Bristol Myers Squibb. The analysis considers two periods, before during crisis, influence technological index. In order capture effects, DCC-GARCH models been applied, estimate time-varying correlation coefficients using a multivariate GARCH framework, allowing modeling correlations returns. results reveal impact returns all companies. Additionally, effect between companies, market, was observed period.