Health and Healthcare

Short Sellers Run for Cover From Major Biotech Stocks

Chris Lange

Published: July 26, 2017 9:35 am

Last Updated: January 12, 2020 9:45 am

The short interest data are out for the most recent settlement date, July 14. Generally speaking, companies within the biotech industry are considered to be a riskier group of stocks, with big potential upside and big potential downside. The health care sector in general has rallied since Donald Trump won the presidency, but now that his repeal of the ACA looking uncertain, the health care rally is called into question.

As we have said before, FDA rulings can make or break the biotech stocks, and short sellers and mega-bulls often go to war against each other in these companies. After all, if a single failed clinical trial can mean disaster for a stock, then some short sellers can argue for a stock implosion down the road.

24/7 Wall St. has reviewed the top biotech companies, without focusing on speculative companies. The July 14 short interest data have been compared with the previous report, and short interest in most of the selected biotech stocks decreased.

Amgen Inc. (NASDAQ: AMGN) saw its short interest decrease to 8.37 million shares from the previous level of 8.59 million. Shares closed most recently at $180.89, in a 52-week trading range of $133.64 to $184.21.

Short interest in Biogen Inc. (NASDAQ: BIIB) increased to 3.20 million shares from the previous 3.11 million. The stock recently traded at $282.96, within a 52-week range of $244.28 to $333.65.

Celgene Corp.’s (NASDAQ: CELG) short interest for this settlement date decreased to 10.22 million shares from the previous 10.99 million. Shares were changing hands at $136.44, in a 52-week range of $96.93 to $138.93.

Gilead Sciences Inc. (NASDAQ: GILD) saw its short interest fall to 13.38 million shares from 13.66 million in the previous period. Shares were trading at $73.74, in a 52-week trading range of $63.76 to $82.10.

The number of MannKind Corp. (NASDAQ: MNKD) shares short decreased slightly to 22.74 million. The previous reading was 22.84 million. The stock was last seen at $1.26, in a 52-week range of $0.67 to $5.10.

Alexion Pharmaceuticals Inc.’s (NASDAQ: ALXN) short interest decreased slightly to 5.63 million shares, compared to the previous level of 5.68 million. Shares were trading at $129.35, in a 52-week range of $96.18 to $145.42.