BridgeBio Pharma, Inc. (NASDAQ: BBIO) shares lost ground at Tuesday’s opening. The Palo Alto, Calif.-based company, which claims to be “a new type of biopharmaceutical company focused on genetic diseases,” today announced that a case study, “Applications of Portfolio Theory to Accelerating Biomedical Innovation,” was published in The Journal of Portfolio Management. The case study is intended to explore the real-world application of portfolio theory within the biopharmaceutical industry as a unique approach to driving development of innovative therapies, leveraging BridgeBio’s founding and evolution as an example. The case study is featured in the Journal’s 50th anniversary issue, a special issue celebrating the foundations of modern finance such as Dr. Harry Markowitz’s pioneering work and highlighting the possible future directions of finance.
In 2012, Andrew Lo, Ph.D., co-founder and director of BridgeBio and Charles E. and Susan T. Harris professor at MIT’s Sloan School of Management, began the initial research on the applications of portfolio theory that would ultimately lead to the formation of BridgeBio. Shortly after, he began engaging BridgeBio co-founders, Neil Kumar, Ph.D., chief executive officer, and Brian Stephenson, Ph.D., chief financial officer, on the practical implementations of this theory to form a biotechnology company, a novel approach within the industry at the time.
BBIO shares fell 61 cents, or 2.4%, to $24.59.