Short Sellers Have Mixed Feelings on Major Pharma

Health and Healthcare

Published: August 26, 2015 8:05 am

The short interest data have been released for the August 14 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 August 14 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 retreat to 45.59 million shares from the previous 49.08 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 Tuesday at $31.34, within a 52-week trading range of $27.51 to $36.46.

Merck & Co. Inc. (NYSE: MRK) saw short interest increase to 30.14 million shares from 28.37 million in the previous period. The past few readings have been the highest in the past 52 weeks. Merck shares closed Tuesday at $51.17, in a 52-week trading range of $45.69 to $63.62.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) short interest rose to 10.25 million shares. This is its highest level in the past 52 weeks. The level for the previous settlement date was 9.27 million. Shares of Teva closed Tuesday at $64.21, in a 52-week range of $47.36 to $72.31.

Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest fall to 19.89 million shares from the previous reading of 20.26 million. The past few readings are among the lowest of the year, with the current reading being the lowest. Bristol-Myers shares closed Tuesday at $57.88, within a 52-week range of $47.55 to $70.54.

AbbVie Inc. (NYSE: ABBV) short interest continued its big turn downward, to 36.56 million shares from the previous level of 44.48 million. Short interest has backed way off its highest level year to date; the highest reading in the past 52 weeks was 111.88 million. Shares of AbbVie closed Tuesday at $60.71, in a 52-week trading range of $52.06 to $71.60.

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