Funding for early-stage biomedical innovation has been declining at the same time that medical breakthroughs seem to be occurring at ever increasing rates. One explanation for this counterintuitive trend is that increasing scientific knowledge can actually lead to greater economic risk for investors in the life sciences. While the Human Genome project, high-throughput screening, genetic biomarkers, immunotherapies, and gene therapies have had tremendously positive impact on biomedical research and, consequently, patients, they have also increased the cost and complexity of the drug development process, causing investors to shift their assets to more attractive investment opportunities. In this talk, Prof. Lo will describe how data science and financial engineering are being used to forecast more accurately the financial risks and rewards of drug discovery and development, thereby reducing the risk and increasing the attractiveness of biomedical innovation so as bring new and better therapies to patients faster.