Purpose – A mix of legacy drug makers and small startups have stepped forward with plans to develop vaccines or treatments that target the infection caused by Covid-19. In this paper, we examine whether COVID-19 related news triggers investment to pharma and biotech companies. Methodology We investigate the news impact of the pandemic on global pharmaceuticals and biotechnology industry stock returns by utilizing EGARCH models and News Impact Curves Findings- Due to our results, there are outstanding companies such as Gilead with its remdesivir which was originally developed to treat the Ebola virus and Dynavax partnering with vaccine developer companies to use its technology. Conclusion- The asymmetry in the NICs for the favor of good news suggests that companies like Gilead and Dynavax are priced by the market with an expectation to find the cure or play an important part in this process.
|Konular||İşletme, İşletme Finans|
|Yayımlanma Tarihi||30 Haziran 2020|
|Yayınlandığı Sayı||Yıl 2020, Cilt 9, Sayı 2|
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