Cancer megafunds with in silico and in vitro validation: accelerating cancer drug discovery via financial engineering without financial crisis.
Advances in financial engineering are radically reshaping the biomedical marketplace. For instance, new methods of pooling diversified drug development programs by placing them in a special purpose vehicle (SPV) have been proposed to create a securitized cancer megafund allowing for debt and equity participation. In this study, we perform theoretical and numerical simulations that highlight the role of empirical validation of the projects comprising a cancer megafund. We quantify the degree to which the deliberately designed structure of derivatives and investments is key to its liquidity. Research megafunds with comprehensive in silico and laboratory validation protocols and ability to issue both debt, and equity as well as hybrid financial products may enable conservative investors including pension funds and sovereign government funds to profit from unique securitization opportunities. Thus, while hedging investor's longevity risk, such well-validated megafunds will contribute to health, well being and longevity of the global population.
King Abdullah University of Science and Technology, Jeddah, Saudi Arabia.
Xianjin
X
Yang
Universite Lyon 1, Laboratoire SAF, France.
Edouard
E
Debonneuil
Insilico Medicine, ETC, Johns Hopkins University, Baltimore, MD, USA.
Alex
A
Zhavoronkov
Courant Institute and Tandon School of Engineering, NYU, NY, USA.
Bud
B
Mishra
D000465:Algorithms; D000970:Antineoplastic Agents / Q000191:economics*; D003132:Commerce; D055808:Drug Discovery / Q000191:economics*; D004345:Drug Industry / Q000191:economics*; D006801:Humans; D066298:In Vitro Techniques; D007449:Investments; D018803:Models, Economic; D015233:Models, Statistical; D009369:Neoplasms / Q000188:drug therapy* / Q000191:economics*; D012306:Risk
D000970:Antineoplastic Agents
RBO; cancer megafund; in silico validation; megafund; research-backed obligation