Short Sellers Become More Selective in Major Pharma

The short interest data have been released for the March 31 settlement date. Pharmaceutical companies usually are 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 March 31 short interest data have been compared with the previous figures, and for most of the selected pharmaceutical stocks short interest was mixed.

Pfizer Inc. (NYSE: PFE) saw its short interest rise to 323.94 million shares from the previous 322.67 million. The current reading is the highest on the year. Shares of Pfizer closed Monday at $31.89, within a 52-week trading range of $28.25 to $36.46.

Merck & Co. Inc. (NYSE: MRK) saw a decrease in short interest to 28.66 million shares from 33.18 million in the previous period. Merck shares closed Monday at $55.05, in a 52-week range of $45.69 to $61.70.
[recirclink id=325363]
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) short interest increased to 18.05 million shares. The previous level was 14.33 million, the highest in the past 52 weeks. Shares of Teva closed Monday at $55.92, in a 52-week range of $52.62 to $72.31.

Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest decrease to 22.18 million shares from the previous reading of 25.61 million. Shares closed Monday at $65.98, within a 52-week range of $51.82 to $70.87.

AbbVie Inc. (NYSE: ABBV) short interest decreased slightly to 22.53 million shares, compared to the previous level of 23.71 million. Short interest has backed way off its highest level of the past year last May. Shares of AbbVie closed Monday at $58.50, in a 52-week trading range of $45.45 to $71.60.