Missing Novelty in Drug Development
نویسندگان
چکیده
Abstract We provide evidence that risk aversion leads pharmaceutical firms to underinvest in radical innovation. introduce a new measure of drug novelty based on chemical similarity and show face risk-reward trade-off: novel candidates are less likely obtain FDA approval but more valuable patents. Consistent with simple model costly external finance, we positive shock firms’ net worth develop drugs. This suggests even large may behave as though they averse, reducing their willingness investment potentially
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ژورنال
عنوان ژورنال: Review of Financial Studies
سال: 2021
ISSN: ['0893-9454', '1465-7368']
DOI: https://doi.org/10.1093/rfs/hhab024