Roger Stein is the chief analytics officer at State Street Global Exchange, a senior lecturer in finance at MIT’s Sloan School of Management and a research affiliate at the MIT Laboratory for Financial Engineering. He has been working in risk modeling and financial prediction for almost 25 years; his products and services are used widely in industry and have become benchmarks in banking and finance. With MIT colleagues, he is currently collaborating on a new model that uses modern risk management methods and financial engineering techniques to change the way new drug research is funded.
intro’d to Roger here:
A bold new way to fund drug research
Believe it or not, about 20 years’ worth of potentially life-saving drugs are sitting in labs right now, untested. Why? Because they can’t get the funding to go to trials; the financial risk is too high. Roger Stein is a finance guy, and he thinks deeply about mitigating risk. He and some colleagues at MIT came up with a promising new financial model that could move hundreds of drugs into the testing pipeline. (Filmed at TED@StateStreet.)
Roger Stein wants to bring financial engineering to the world of drug funding.
create a megafund to fund 100’s of trials – produce low risk bonds at 8% and equity at 12% – (401k’s, pension plans, …)
made code open source
there are enough drugs (sitting around waiting to get funded)
100 trillion dollaars of capital currently invested in fixed income securities…
there’s plenty of money..
had conference summer 2013 – with all kinds of experts..