Short Sellers Run for Cover in Big Pharma

Health and Healthcare

Published: July 13, 2015 8:05 am

The short interest data have been released for the June 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 can be big upside.

The June 30 short interest data have been compared with the previous figures, and across the selected stocks, short interest decreased.

Pfizer Inc. (NYSE: PFE) saw its short interest decrease to 68.44 million shares from the previous 73.77 million. In February, short interest spiked incredibly, and since that time it has slowly backed off. The highest short interest reading on the year was 207.4 million. Shares of Pfizer closed Friday at $34.36, within a 52-week trading range of $27.51 to $35.53.

Merck & Co. Inc. (NYSE: MRK) saw its short interest increase only slightly to 32.69 million shares from 32.11 million in the previous period. The current and previous readings are some of the highest in the past 52 weeks. Merck shares closed Friday at $57.95, in a 52-week trading range of $52.49 to $63.62.

Teva Pharmaceutical Industries Ltd.‘s (NYSE: TEVA) short interest rose to 6.64 million shares. The level for the previous settlement date was 5.87 million. Shares of Teva closed Friday at $61.38, in a 52-week range of $47.36 to $68.75.

ALSO READ: Short Sellers Back Off Big Biotech

Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest fall to 22.59 million shares from the previous reading of 23.38 million. The past few readings, including the current one, are the lowest short interest of the year. Bristol-Myers shares closed Friday at $69.27, within a 52-week trading range of $47.55 to $69.86.

AbbVie Inc.‘s (NYSE: ABBV) short interest decreased to 77.38 million shares from the previous level of 86.38 million. Short interest has backed off its highest level year to date; the highest reading in the past 52-weeks was 111.88 million. Shares of AbbVie closed Friday at $69.23, in a 52-week trading range of $51.37 to $70.76.

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