Healthcare Finance: Innovating in a Complex Industry

Course Description

This course explores the intersection of finance and healthcare, addressing the critical challenge of funding scarcity in fundamental science and early-stage translational medicine. By applying advanced financial techniques to biomedical contexts, it aims to equip students with the knowledge and tools to develop more efficient funding structures, reduce financial risks, lower capital costs, and accelerate the delivery of life-saving therapies to patients.

What Students Will Learn

• Basic financial analysis for life sciences professionals
• Historical financial risks and returns in the biopharma industry
• Capital budgeting for pharmaceutical companies
• Drug development and clinical trials processes
• Biotech startup financing mechanics
• Innovative funding models like biomedical megafunds and drug royalty investment companies
• Healthcare analytics and machine learning applications
• Ethical considerations in healthcare pricing and value assessment

Prerequisites

While there are no specific prerequisites, students would benefit from:

• A basic understanding of finance and economics
• Familiarity with the healthcare and pharmaceutical industries
• Comfort with mathematical concepts and data analysis
• Interest in the intersection of finance and healthcare

Course Coverage

• Present value and time value of money in healthcare contexts
• Capital budgeting and risk assessment in pharmaceutical projects
• Stock and bond valuation in the biopharma industry
• Portfolio theory and diversification strategies for biomedical investments
• Option pricing theory and real options in healthcare
• Clinical trial design, statistics, and Bayesian adaptive trials
• Venture capital financing in biotechnology
• Securitization and megafund structures for healthcare investments
• Healthcare analytics and predictive modeling for drug approvals
• Ethical considerations in drug pricing and healthcare value assessment

Who This Course Is For

• Healthcare professionals seeking to understand the financial aspects of their industry
• Finance professionals looking to specialize in healthcare and biotechnology
• Entrepreneurs and investors interested in biotech startups and funding models
• Policymakers and regulators working on healthcare financing issues
• Students pursuing careers at the intersection of finance and healthcare
• Anyone interested in innovative approaches to funding medical research and drug development

Real-World Applications

• Developing funding strategies for biotech startups or research projects
• Evaluating investment opportunities in pharmaceutical companies
• Designing innovative financial instruments to support drug development
• Improving capital allocation decisions in healthcare organizations
• Analyzing and predicting clinical trial outcomes and drug approval probabilities
• Addressing ethical challenges in healthcare pricing and resource allocation
• Advising on healthcare policy and regulation related to financing and drug development

Syllabus