| Summary: | 碩士 === 國立成功大學 === 企業管理學系碩士在職專班 === 105 === The new drug R＆D process must pass through unblind test of clinical tests in phase III, but unblind results of new drugs often make public investors disappointed. New drugs’ unblind failure not only causes a great challenge to companies’ stocks, but also greatly impacts stock price fluctuation of overall biotechnology. The study will discuss abnormal return rate of new drugs’ unblind failure on medical industry of biotechnology and analyze influences of new drugs’ unblind test from the perspective of abnormal performance of stock price. This is relatively objective and has the integrality. The market model is used to evaluate and measure generation of abnormal returns in the overall medical industry of biotechnology before and after new drugs’ unblind failure statement.
Based on the Event Study, the market model of Thompson(1993), Grace, Rose and Karafiath(1995) is used to discuss influences of the new drugs’ unblind failure of Medigen Biotechnology Corp on July 27th 2014 and new drugs’ unblind failure of OBI Pharma on February 21st 2016 on abnormal returns of overall biotechnology stocks in Taiwan.
Empirical results find that
1. Overall biotechnology stocks indeed generate abnormal returns with negative motility of the subject stock price after the new drugs’ unblind failure. It also has the significant effect with the linear regression analysis.
2. After the new drugs’ unblind failure, it will generate average abnormal returns on stock price of pharmaceutical biotechnology.
3. After twice new drugs’ unblind failure, it will cause a different influence on weighted index number and fluctuation of biotechnology indexes.
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