A UH professor is fighting cancer with a newly created virus that targets the bad cells and leaves the good ones alone. Photo via Getty Images

Viruses attack human cells, and that's usually a bad thing — some Houston researchers have received fresh funding to develop and use the evil powers of viruses for good.

The developing cancer treatment is called oncolytic virotherapy and has risen in popularity among immunotherapy research. The viruses can kill cancer cells while being ineffective to surrounding cells and tissue. Basically, the virus targets the bad guys by "activating an antitumor immune response made of immune cells such as natural killer (NK) cells," according to a news release from the University of Houston.

However exciting this rising OV treatment seems, the early stage development is far from perfect. Shaun Zhang, director of the Center for Nuclear Receptors and Cell Signaling at the University of Houston, is hoping his work will help improve OV treatment and make it more effective.

“We have developed a novel strategy that not only can prevent NK cells from clearing the administered oncolytic virus, but also goes one step further by guiding them to attack tumor cells. We took an entirely different approach to create this oncolytic virotherapy by deleting a region of the gene which has been shown to activate the signaling pathway that enables the virus to replicate in normal cells,” Zhang says in the release.

Zhang, who is also a M.D. Anderson professor in the Department of Biology & Biochemistry, has received a $1.8 million grant from the National Institutes of Health to continue his work.

Zhang and his team are specifically creating a new OV — called FusOn-H2 and based on the Herpes simplex 2 virus.

“Our recent studies showed that arming FusOn-H2 with a chimeric NK engager (C-NK-E) that can engage the infiltrated natural killer cells with tumor cells could significantly enhance the effectiveness of this virotherapy,” he says. “Most importantly, we observed that tumor destruction by the joint effect of the direct oncolysis and the engaged NK cells led to a measurable elicitation of neoantigen-specific antitumor immunity.”

Shaun Zhang is the director of the Center for Nuclear Receptors and Cell Signaling at the University of Houston and M.D. Anderson professor in the Department of Biology & Biochemistry. Image via UH.edu

Rice biochemist Natasha Kirienko and MD Anderson physician-scientist Marina Konopleva made the striking discovery. Photo by Jeff Fitlow

Rice and MD Anderson researchers discover exciting new leukemia treatment

big win

Rice University and MD Anderson researchers have just discovered a potential one-two punch that could, they hope, knock out an insidious disease.

A recent study in the journal Leukemia centers on potential new drugs that, with the help of other medications, can thwart leukemia cells.

Specifically, Rice biochemist Natasha Kirienko and MD Anderson physician-scientist Marina Konopleva screened some 45,000 small-molecule compounds to find a few that targeted mitochondria, according to Rice press materials.

In this innovative new study, the team selected eight of the most promising compounds, identified between five and 30 closely related analogs for each, and conducted tens of thousands of tests to systematically determine how toxic each analog was to leukemia cells. This was measured both when administered individually or in combination with existing chemotherapy drugs like doxorubicin, notes a release.

Previously, Kirienko’s lab had shown the eight compounds targeted energy-producing machinery inside cells called mitochondria. Mitochondria, which work nonstop in every living cell, wear out with use. The chosen eight compounds induce mitophagy, which can be described as how cells decommission and recycle deficient and used-up.

Notably, during times of extreme stress, cells can temporarily forgo mitophagy for an emergency energy boost. Previous research has shown leukemia cells have far more damaged mitochondria than healthy cells and are also more sensitive to mitochondrial damage than healthy cells.

Thus, Kirienko and Konopleva reasoned that mitophagy-inducing drugs might weaken leukemia cells and make them more susceptible to chemotherapy. Synergy — using two or more drugs in treatment — is key.

“The point of synergy is that there are concentrations, or dosages, where a single drug doesn't kill,” Kirienko said. “There is no death of healthy cells or cancer cells. But administering those same concentrations in combination can kill a considerable amount of cancer cells and still not affect healthy cells.”

The team tested the toxicity of its mitophagy-inducing compounds and combinations against acute myeloid leukemia (AML) cells, the most commonly diagnosed form of the disease. They then tested the six most effective AML-killing compounds against other forms of leukemia, finding that five were also effective at killing acute lymphoblastic leukemia (ALL) cells and chronic myelogenous leukemia (CML) cells.

Studies found all the mitophagy-inducing drugs caused far less harm to healthy cells.

Finally, the researchers tested one of the most effective mitochondria-targeting compounds, PS127E, using a cutting-edge technique called a patient-derived xenograft (PDX) model. Also referred to as a “mouse clinical trial,” mice are implanted with cancer cells from a leukemia patient. As the cells grow, the mouse is exposed to a drug or combination of drugs as a closer-than-cells test of the treatment’s effect.

Importantly, PDX tests on one compound, PS127E, showed it was effective at killing AML cells in mice, Rice notes, signaling promising news.

“Although this is very promising, we’re still some distance from having a new treatment we can use in the clinic,” Kirienko added. “We still have a lot to discover. For example, we need to better understand how the drugs work in cells. We need to refine the dose we think would be best, and perhaps most importantly, we need to test on a wide variety of AML cancers. AML has a lot of variations, and we need to know which patients are most likely to benefit from this treatment and which are not. Only after we’ve done that work, which may take a few years, would we be able to start testing in humans.”

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This article originally ran on CultureMap.

This UH engineer is hoping to make his mark on cancer detection. Photo via UH.edu

University of Houston engineer's research hopes to help detect cancer cells faster and easier

future of health

Early stage cancer is hard to detect, mostly because traditional diagnostic imaging cannot detect tumors smaller than a certain size. One Houston innovator is looking to change that.

Wei-Chuan Shih, professor of electrical and computer engineering at the University of Houston's Cullen College of Engineering, recently published his findings in IEEE Sensors journal. According to a news release from UH, the cells around cancer tumors are small — ~30-150nm in diameter — and complex, and the precise detection of these exosome-carried biomarkers with molecular specificity has been elusive, until now.

"This work demonstrates, for the first time, that the strong synergy of arrayed radiative coupling and substrate undercut can enable high-performance biosensing in the visible light spectrum where high-quality, low-cost silicon detectors are readily available for point-of-care application," says Shih in the release. "The result is a remarkable sensitivity improvement, with a refractive index sensitivity increase from 207 nm/RIU to 578 nm/RIU."

Wei-Chuan Shih is a professor of electrical and computer engineering at the University of Houston's Cullen College of Engineering. Photo via UH.edu

What Shih has done is essentially restored the electric field around nanodisks, providing accessibility to an otherwise buried enhanced electric field. Nanodisks are antibody-functionalized artificial nanostructures which help capture exosomes with molecular specificity.

"We report radiatively coupled arrayed gold nanodisks on invisible substrate (AGNIS) as a label-free (no need for fluorescent labels), cost-effective, and high-performance platform for molecularly specific exosome biosensing. The AGNIS substrate has been fabricated by wafer-scale nanosphere lithography without the need for costly lithography," says Shih in the release.

This process speeds up screening of the surface proteins of exosomes for diagnostics and biomarker discovery. Current exosome profiling — which relies primarily on DNA sequencing technology, fluorescent techniques such as flow cytometry, or enzyme-linked immunosorbent assay (ELISA) — is labor-intensive and costly. Shih's goal is to amplify the signal by developing the label-free technique, lowering the cost and making diagnosis easier and equitable.

"By decorating the gold nanodisks surface with different antibodies (e.g., CD9, CD63, and CD81), label-free exosome profiling has shown increased expression of all three surface proteins in cancer-derived exosomes," said Shih. "The sensitivity for detecting exosomes is within 112-600 (exosomes/μL), which would be sufficient in many clinical applications."

Five cancer research teams have been selected to receive funds from a new initiative from the University of Texas. Photo via news.utexas.edu

UT system funds Houston researchers in new collaboration to cure cancer

collaborate for a cure

In a renewed effort to move the needle on finding a cure for cancer, the University of Texas system has launched a new collaboration in oncological data and computational science across three programs.

Houston-based University of Texas MD Anderson Cancer Center has teamed up with two UT Austin schools — the Oden Institute for Computational Engineering and Sciences and the Texas Advanced Computing Center. The collaboration was announced this summer to tap into mathematical modeling and advanced computing along with oncology expertise to inspire new methods of cancer treatment.

"Integrating and learning from the massive amount of largely unstructured data in cancer care and research is a formidable challenge," says David Jaffray, Ph.D., chief technology and digital officer at MD Anderson, in a news release. "We need to bring together teams that can place quantitative data in context and inform state-of-the-art computational models of the disease and accelerate progress in our mission to end cancer."

Now, the first five projects to be funded under this new initiative have been announced.

  • Angela Jarrett of the Oden Institute and Maia Rauch of MD Anderson will develop a patient-specific mathematical model for forecasting treatment response and designing optimal therapy strategies for patients with triple-negative breast cancer.
  • Caroline Chung of MD Anderson and David Hormuth of the Oden Institute are using computational models of the underlying biology to fundamentally change how radiotherapy and chemotherapy are personalized to improve survival rates for brain cancer patients.
  • Ken-Pin Hwang of MD Anderson and Jon Tamir of UT Austin's Department of Electrical and Computer Engineering and the Oden Institute will use mathematical modeling and massively parallel distributed computing to make prostate MR imaging faster and more accurate to reduce the incidence of unnecessary or inaccurate biopsies.
  • Xiaodong Zhang of MD Anderson and Hang Liu of TACC will advance both the planning and delivery of proton therapy via a platform that combines mathematical algorithms and high-performance computing to further personalize these already highly tailored treatments.
  • Tinsley Oden and Prashant Jha of the Oden Institute and David Fuentes of MD Anderson will integrate a new mechanistic model of tumor growth with an advanced form of MRI to reveal underlying metabolic alterations in tumors and lead to new treatments for patients.

"These five research teams, made up of a cross section of expertise from all three stakeholders, represent the beginning of something truly special," says Jaffray in a release. "Our experts are advancing cancer research and care, and we are committed to working with our colleagues at the Oden Institute and TACC to bring together their computational expertise with our data and insights."

Later this month, the five teams will log on to a virtual retreat along with academic and government thought leaders to further collaborate and intertwine their research and expertise.

"Texas is globally recognized for its excellence in computing and in cancer research. This collaboration forges a new path to international leadership through the combination of its strengths in both," says Karen Willcox, director of the Oden Institute. "We are thrilled that leaders in government, industry and academia see the potential of this unique Texan partnership. We're looking forward to a virtual retreat on October 29 to continue to build upon this realization."

Three health and tech research projects coming out of the Houston area have received grants to continue their work. Getty Images

These 3 Houston-area researchers receive millions in grants for ongoing innovation projects

Research roundup

Money makes the world go 'round, and that's certainly the case with research projects. Grants are what drives research at academic institutions across the country and fuel the next great innovations.

These three projects coming out of Houston-area universities were all granted multimillion-dollar sums in order to continue their health tech, cancer-prevention, and even electric vehicle battery research projects,

University of Houston's $3.2 million grant for its next-generation micro CT scan

Associate professor of physics Mini Das developed a better way to approach CT scans. Photo via uh.edu

In an effort to improve imaging and lower radiation, Mini Das, associate professor of physics at the University of Houston, is moving the needle on introducing the next generation of micro computed tomography (CT) imaging. Das recently received a five-year, $3.2 million grant from the National Institute of Biomedical Imaging and Bioengineering to help move along her work in this field.

"This has the potential to transform the landscape of micro-CT imaging," says Das in a news release.

Das is responsible for developing the theory, instrumentation and algorithms for spectral phase-contrast imaging (PCI) that allows for lower radiation with higher image details, according to the release.

"Current X-ray and CT systems have inherent contrast limitations and dense tissue and cancer can often look similar. Even if you increase the radiation dose, there is a limit to what you can see. In addition, image noise becomes significant when increasing resolution to see fine details, often desirable when scanning small objects," says Das.

Rice University researcher's $2.4 million grant to advance on car batteries

This company’s machine learning programs are making driving in Houston safer — and cheaper

A Rice University scientist is looking to optimize car batteries. Pexels

A Rice University scientist is working toward improving batteries for electric vehicles. Materials scientist Ming Tang and his colleagues — backed by a $2.4 million grant from the United States Advanced Battery Consortium — are working on a project led by Worcester Polytechnic Institute (WPI) in Massachusetts, which will run for 36 months and will focus on low-cost and fast-charging batteries.

"Traditional battery electrodes are prepared by the slurry casting method and usually have uniform porosity throughout the electrode thickness," says Tang, an assistant professor of materials science and nanoengineering, in a news release. "However, our earlier modeling study shows that an electrode could have better rate performance by having two or more layers with different porosities.

"Now with the Missouri University of Science and Technology and WPI developing a new dry printing method for battery electrode fabrication, such layered electrodes can be manufactured relatively easily," he said. Tang's group will use modeling to optimize the structural parameters of multilayer electrodes to guide their fabrication.

The academics will also work with a manufacturer, Microvast, that will assemble large-format pouch cells using layered electrodes and evaluate the electrochemical performance against the program goals, according to the release.

"The public/private partnership is critical to steer the research performed at universities," Tang says. "It helps us understand what matters most to commercial applications and what gaps remain between what we have and what is needed by the market. It also provides valuable feedback and gives the project access to the state-of-the-art commercial battery fabrication and testing capabilities."


Texas A&M faculty member's $5 million grant for cancer research

Tanmay Lele of Texas A&M University is looking at how cells react to mechanical forces in cancer. Photo via tamu.edu

Tanmay Lele, a new faculty member in Texas A&M University's Department of Biomedical Engineering, received a $5 million Recruitment of Established Investigators grant from the Cancer Prevention and Research Institute of Texas (CPRIT) in May to research how cancer progresses.

More specifically, Lele's research focuses on mechanobiology and how cells sense external mechanical forces as well as how they generate mechanical forces, and how these mechanical forces impact cell function, according to a news release from A&M.

"The nuclei in normal tissue have smooth surfaces, but over time the surfaces of cancer nuclei become irregular in shape," Lele says in the release. "Now, why? Nobody really knows. We're still at the tip of the iceberg at trying to figure this problem out. But nuclear abnormalities are ubiquitous and occur in all kinds of cancers — breast, prostate and lung cancers."

Lele will work from two laboratories — one in College Station and one in the Texas A&M Health Science Center's Institute of Biosciences & Technology in Houston. THe will collaborate with Dr. Michael Mancini and Dr. Fabio Stossi from Baylor College of Medicine.

"Like any other basic field, we are trying to make discoveries with the hope that they will have long-term impacts on human health," Lele says.

iBiochips was awarded a $1.5 million grant in September to help develop a new technology that delivers data about the cell's genetic makeup and reports abnormalities. Getty Images

Houston-based biotech company aims to revolutionize cellular dissection technology

digital disease detective

Innovative Biochips, a Houston-based biotechnology company, is one step closer to commercializing technology that the company hopes will provide an opportunity for researchers to detect diseases earlier.

The company was founded three years ago by Dr. Lidong Qin, a professor at the Houston Methodist Research Institute's department of nanomedicine. He launched iBiochips as an independent faculty startup that licensed technology from Houston Methodist. Qin says he wanted to engineer and manufacture devices that focus on revolutionizing single-cell isolation and genetic analysis.

Qin says it can be difficult to launch a biotech startup in Houston, since the industry requires hefty initial funds to open a facility, get patents and hire a team of researchers.

"In the Houston area, even though it looks like it's a lot of state money (grants) around, it's very limited, and that's been a challenge of ours," Qin says.

But with the help of a $1.5 million investment from a private investor, Qin was able to launch iBiochips in 2015, and shortly after opened his own lab on Kirby Drive.

Recently, iBiochips was awarded a $1.5 million grant in September from the National Institutes of Health's Small Business Technology Transfer program. The grant will further support the company's research and development of an automated yeast dissection chip, which is designed to perform a raw analysis of single cells and deliver data about the cell's genetic makeup and report abnormalities.

Prior to the phase two grant, iBiochips was also awarded NIH's phase one grant of $225,000 in September 2017 to develop a prototype for the company's flagship cell isolation product, the Smart Aliquotor.

The Smart Aliquotor is a single-cell isolation dissection platform that allows scientists to analyze larger amounts of cells at a much faster rate than traditional isolation methods, Qin says. He says the system is also more convenient for researchers to operate because traditional cell isolation techniques require a lot of human effort.

To isolate the cells with a Smart Aliquotor, a scientist would take a patient's blood sample and inject it into a single point in the device. The blood sample would then travel through microfluidic channels into the device's 60 to 100 isolated holes, Qin says.

"In three days, we can handle about one million cells," Qin says. "In a traditional approach, people can handle only one or two cells in three days. So that is how we came to the [idea of the] chip can help a scientist do 20 years of work in three days."

The Smart Aliquotor can then be examined with iBiochips' newly funded automated dissection chip, which Qin says has the potential to detect cancer or infectious diseases earlier than before.

"If you isolate a cell by itself — even in the very beginning stage when the aggressive cells are not as dominating yet — you can still see that [abnormality in the sample]," Qin says.

iBiochips' products are currently only being manufactured for research use at clinical labs, universities and pharmacies. However, with the recent grant award, Qin says the company's research team plans to spend the next three to five years preparing the products for worldwide commercialization.


Dr. Lidong Qin is a professor at the Houston Methodist Research Institute's department of nanomedicine. He launched iBiochips as an independent faculty startup that licensed technology from Houston Methodist.Courtesy of Lidong Qin

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Houston hospital joins the metaverse with new platform

now online

Houston Methodist has launched a platform that is taking medical and scientific experts and students into the metaverse.

The MITIEverse, a new app focused on health care education and training, provides hands-on practice, remote assistance from experienced clinicians, and more. The app — named for the Houston Methodist Institute for Technology, Innovation and Education, aka MITIE — was created in partnership with FundamentalVR and takes users into virtual showcase rooms, surgical simulations, and lectures from Houston Methodist faculty, as well as collaborators from across the world.

“This new app brings the hands-on education and training MITIE is known for to a new virtual audience. It could be a first step toward building out a medical metaverse,” says Stuart Corr, inventor of the MITIEverse and director of innovation systems engineering at Houston Methodist, in a news release.

Image courtesy of Houston Methodist

The hospital system's DeBakey Heart and Vascular Center has created a virtual showcase room on the app, and users can view Houston Methodist faculty performing real surgeries and then interact with 3D human models.

"We view the MITIEverse as a paradigm-shifting platform that will offer new experiences in how we educate, train, and interact with the health community,” says Alan Lumsden, M.D., medical director of Houston Methodist DeBakey Heart and Vascular Center, in the release.

“It essentially democratizes access to health care educators and innovators by breaking down physical barriers. There’s no need to travel thousands of miles to attend a conference when you can patch into the MITIEverse," he continues.

Image courtesy of Houston Methodist

Houston doctors get approval for low-cost COVID vaccine abroad

green light

A Houston-born COVID-19 vaccine has gotten the go-ahead to be produced and distributed in Indonesia.

PT Bio Farma, which oversees government-owned pharmaceutical manufacturers in Indonesia, says it’s prepared to make 20 million doses of the IndoVac COVID-19 vaccine this year and 100 million doses a year by 2024. This comes after the vaccine received authorization from the Indonesian Food and Drug Authority for emergency use in adults.

With more than 275 million residents, Indonesia is the world’s fourth most populous country.

IndoVac was created by the Texas Children’s Hospital Center for Vaccine Development and Baylor College of Medicine. Drs. Peter Hotez and Maria Elena Bottazzi lead the vaccine project. Bio Farma is licensing IndoVac from BCM Ventures, the commercial group at the Baylor College of Medicine.

“Access to vaccines in the developing world is critical to the eradication of this virus,” Hotez, co-director of the Texas Children’s Hospital Center for Vaccine Development and dean of the National School of Tropical Medicine at Baylor College of Medicine, says in a news release.

Aside from distributing the vaccine in Indonesia, Bio Farma plans to introduce it to various international markets.

“The need for a safe, effective, low-cost vaccine for middle- to low-income countries is central to the world’s fight against the COVID-19 pandemic,” says Bottazzi, co-director of the Texas Children’s Hospital Center for Vaccine Development and associate dean of the National School of Tropical Medicine at Baylor.

“Without widespread inoculation of populations in the developing world, which must include safe, effective booster doses, additional [COVID-19] variants will develop, hindering the progress achieved by currently available vaccines in the United States and other Western countries.”

Bio Farma says it has completed Phase 1 and Phase 2 clinical trials for IndoVac and is wrapping up a Phase 3 trial.

IndoVac is a version of the patent-free, low-cost Corbevax vaccine, developed in Houston and dubbed “The World’s COVID-19 Vaccine.” The vaccine formula can be licensed by a vaccine producer in any low- or middle-income country, which then can take ownership of it, produce it, name it, and work with government officials to distribute it, Hotez told The Texas Tribune in February.

Among donors that have pitched in money for development of the vaccine are the Houston-based MD Anderson and John S. Dunn foundations, the San Antonio-based Kleberg Foundation, and Austin-based Tito’s Vodka.

“During 2022, we hope to partner with the World Health Organization and other United Nations agencies to vaccinate the world. We believe that global vaccine equity is finally at hand and that it is the only thing that can bring the COVID pandemic to an end,” Hotez and Bottazzi wrote in a December 2021 article for Scientific American.

Houston research: How best to deliver unexpected news as a company

houston voices

According to Forbes, the volume of mergers and acquisitions in 2021 was the highest on record, and 2022 has already seen a number of major consolidation attempts. Microsoft’s acquisition of video game company Activision Blizzard was the biggest gaming industry deal in history, according to Reuters. JetBlue recently won the bid over Frontier Airlines to merge with Spirit Airlines. And, perhaps most notably, Elon Musk recently backed out of an attempt to acquire Twitter.

It can be hard to predict how markets will react to such high-profile deals (and, in Elon Musk and Twitter’s case, whether or not the deal will even pan out). But Rice Business Professor Haiyang Li and Professor Emeritus Robert Hoskisson, along with Jing Jin of the University of International Business and Economics in Beijing, have found that companies can take advantage of these deals to buffer the effects of other news.

The researchers looked at 7,575 mergers and acquisitions from 2001 to 2015, with a roughly half-and-half split between positive and negative stock market reactions. They found that when there’s a negative reaction to a deal, companies have two strategies for dealing with it. If it’s a small negative reaction, companies will release positive news announcements in an attempt to soften the blow. But when the reaction is really bad, companies actually tend to announce more negative news afterward. Specifically, companies released 18% less positive news and 52% more negative news after a bad market reaction.

This may seem counterintuitive, but there’s a method to the madness, and it all has to do with managing expectations. If people are lukewarm on a company due to a merger or acquisition, it’s possible to sway public opinion with unrelated good news. When the backlash is severe, though, a little bit of good PR won’t be enough to change people’s minds. In this case, companies release more bad news because it’s one of their best chances to do so without making waves in the future. If people already think poorly of a company due to a recent deal, more bad news isn’t great, but it doesn’t come as a surprise, either. Therefore, it’s easier to ignore.

It might make more sense to just keep quiet if the market reaction to a deal is bad, and this study found that most companies do. However, this only applies when releasing more news would make a mildly bad situation worse. If things are already bad enough that the company can’t recover with good news, it can still make the best out of a bad situation by offloading more bad news when the damage will be minimal. Companies are legally obligated to disclose business-related news or information with shareholders and with the public. If it’s bad news, they like to share it when the public is already upset about a deal, instead of releasing the negative news when there are no other distractions. In this case the additional negative news is likely to get more play in the media when disclosed by itself.

But what happens when people get excited about a merger or acquisition? In these cases, it also depends on how strong the sentiment is. If the public’s reaction is only minimally positive, companies may opt to release more good news in hopes of making the reaction stronger. When the market is already enthusiastic about the deal, though, companies won’t release more positive news. The researchers found that after an especially positive market reaction to a deal, companies indeed released 12% less positive news but 56% more negative news. Also, one could argue that the contrasting negative news makes the good news on the acquisition look even better. This may be important especially if the acquisition is a significant strategic move.

There are several reasons why a company wouldn’t continue to release positive news after a good press day and strong market reaction. First of all, they want to make sure that a rise in market price is attributed to the deal alone, and not any irrelevant news. A positive reaction to a deal also gives companies another opportunity to disclose bad news at a time when it will get less attention. If the bad news does get attention, the chances are better that stakeholders will go easy on them — a little bit of bad press is forgivable when the good news outshines it.

Companies may choose to release no news after a positive reaction to a merger or acquisition, the same way they might opt to stay quiet after backlash. They’re less likely to release positive news when stakeholders are already happy, preferring to save that news for the next time they need it, either to offset a negative reaction or strengthen a weak positive reaction.

Mergers and acquisitions can produce unpredictable market reactions, so it’s important for companies to be prepared for a variety of outcomes. In fact, Jin, Li and Hoskisson found that the steps taken by companies before deals were announced didn’t have much effect on the public’s reaction. They found that it’s more important for companies to make the best out of that reaction, whatever it turns out to be.

The researchers also found that, regardless of whether the market reaction was positive or negative, as long as the reaction was strong, companies could use the opportunity to hide smaller pieces of bad news in the shadow of a headline-making deal. Overall, the magnitude of the reaction mattered more than the type of reaction. People tend to have stronger reactions to unexpected news, though, so companies prefer to release negative news when market expectations are already low.

These findings are relevant beyond merger announcements, of course; they also point to strategies that could be useful in everyday communications. A key takeaway is that negative information is less upsetting when people already expect bad things — or when it comes after much bigger, and much better, news. Bad news is always hard to deliver, but this research gives us a few ways to soften the blow.

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This article originally ran on Rice Business Wisdom and was based on research from Jing Jin, Haiyang Li and Robert Hoskisson.