Event-Based Biotechnology Stock Price Movement: Valuing Success and Failure in Biotechnology Product Development

Biotechnology investment, in the second quarter of 2015, hauled in a record $2.3 billion worth of venture capital. The 126 deals struck marked the biggest quarterly investment (up 32% from the prior quarter) since reporting started in 1995. With $3.8 billion invested in these pre-IPO ventures by mid-2015, the biotech industry soared past the $6 billion of venture capital cash invested in 2014. These numbers illustrate how early-stage research, with unproven science, has been revived after a decade of VCs shying away. Out of the $2.3 billion raised in Q2, $1.5 billion went to early-stage companies while $733 million went to startups receiving money for the first time