Research Papers:

Cancer megafunds with in silico and in vitro validation: accelerating cancer drug discovery via financial engineering without financial crisis

Xianjin Yang, Edouard Debonneuil, Alex Zhavoronkov and Bud Mishra _

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Oncotarget. 2016; 7:57671-57678. https://doi.org/10.18632/oncotarget.9808

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Xianjin Yang1, Edouard Debonneuil2, Alex Zhavoronkov3, Bud Mishra4

1King Abdullah University of Science and Technology, Jeddah, Saudi Arabia

2Universite Lyon 1, Laboratoire SAF, France

3Insilico Medicine, ETC, Johns Hopkins University, Baltimore, MD, USA

4Courant Institute and Tandon School of Engineering, NYU, NY, USA

Correspondence to:

Bud Mishra, email: [email protected]

Keywords: megafund, in silico validation, cancer megafund, research-backed obligation, RBO

Received: January 22, 2016     Accepted: May 22, 2016     Published: June 03, 2016


Advances in financial engineering are radically reshaping the biomedical marketplace. For instance, new methods of pooling diversified drug development programs by placing them in a special purpose vehicle (SPV) have been proposed to create a securitized cancer megafund allowing for debt and equity participation. In this study, we perform theoretical and numerical simulations that highlight the role of empirical validation of the projects comprising a cancer megafund. We quantify the degree to which the deliberately designed structure of derivatives and investments is key to its liquidity. Research megafunds with comprehensive in silico and laboratory validation protocols and ability to issue both debt, and equity as well as hybrid financial products may enable conservative investors including pension funds and sovereign government funds to profit from unique securitization opportunities. Thus, while hedging investor's longevity risk, such well-validated megafunds will contribute to health, wellbeing and longevity of the global population.

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