Roger Stein

Senior Lecturer and Research Affiliate

Senior Lecturer in finance and Research Affiliate, Laboratory for Financial Engineering)

Roger M. Stein has been working with several colleagues at MIT (Andrew Lo, Jose-Maria Fernandez, David Fagnan and Austin A. Gromatzky) to develop new financing methods for early-stage drug development. The early-stage juncture in the drug development process is particularly difficult to fund because the risk of failure is high and the horizon of the required investment is often long. 

Stein and his colleagues have developed a number of approaches that apply financial engineering techniques to this problem to transform the need to invest in single risky drug development projects into the ability to invest in pooled debt and equity investments that have much lower risk profiles and that could appeal to traditional fixed income investors like pension funds and insurance companies. The initial research applied these approaches to funding cancer THERAPIES. The team has published a number of papers ( and organized two conferences on this topic. Stein and his colleagues also liaise with industry participants in both pharmaceuticals and finance who are in the process of implementing these approaches. Stein’s TED talk on this research can be seen at: .