Session 2A: Effects of a New Product\u27s Announcement on a Drug Company\u27s Stock Performance

Companies often publicly announce their new products to attract customers. Their successfulness is indicated in a change in their stock performance. This investigation studies how the announcement of new drug products affects a company\u27s stock price. I looked at eight different pharmaceutical companies and created a list of the new drugs they produced since 2000. For each drug, I found the FDA approval date and the company\u27s stock prices for thirty days before and after the approval date. The data was compared in multiple ways, and the results show that new drugs announced by a company does affect the stock price. There was a 61.54% of positive impact on the stock prices, indicating that product announcements are effective but not always. Furthermore, there may be other factors that influence a change in the stock prices, so it is unclear whether that specific drug had an effect. The results will help predict a company\u27s stock performance more accurately and thus allow us to see the trends when different factors are applied