Short Sellers Keep Strong Bets Against Big Pharma

Health and Healthcare

Published: May 12, 2015 9:50 am

The short interest data has been released for the April 30 settlement date. Pharmaceutical companies are usually involved in a lengthy process in getting their drug candidates to market through clinical trials. There is a fair amount of risk involved, should a study come back negative or a candidate not be approved. Conversely, if a drug is approved or passes a clinical trial, there is upside.

The April 30 short interest data have been compared with the previous figures, and for the selected stocks, short interest is mixed.

Pfizer Inc. (NYSE: PFE) saw its short interest decrease to 88.8 million shares from the previous 109.6 million. Since February, short interest has been incredibly elevated, and the current reading is just backing off of this. The highest short interest reading on the year was 207.4 million. Shares of Pfizer closed Monday at $33.96, within a 52-week trading range of $27.51 to $35.53.

ALSO READ: The 5 Most Shorted NYSE Stocks in April

Merck & Co. Inc. (NYSE: MRK) saw its short interest increase to 31.5 million shares from 29.5 million in the previous period. The current reading is one of the highest in the past 52 weeks. However, short interest has not been above the 30 million mark since last July. Merck shares closed Monday at $60.00, in a 52-week trading range of $52.49 to $63.62.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) short interest fell to 7.2 million shares. The level for the previous settlement date was 8.90 million. Prior to the past few readings, shares have not been over the 7 million mark since last June. Shares of Teva closed Monday at $61.29, in a 52-week trading range of $47.36 to $68.75.

Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest rise to 21.1 million shares from the previous reading of 20.2 million. These two readings are the lowest short interest on the year. It is also worth mentioning that as the stock has pushed higher recently, short interest has backed off to some of its lowest levels on the year. Bristol-Myers shares closed Monday at $68.11, within a 52-week trading range of $46.30 to $69.20.

AbbVie Inc. (NYSE: ABBV) short interest increased to 26.2 million shares from the previous level, 24.9 million. Short interest is at its highest level year to date, but this pales in comparison to readings that it posted in 2014, as high as 111.9 million, nearly four-times as large as the current reading. Shares of AbbVie closed Monday at $65.20, in a 52-week trading range of $51.37 to $70.76.

ALSO READ: Short Sellers Start to Get Nervous on Biotech

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