Health and Healthcare
Short Sellers Run for Cover From Major Pharma
Published:
Last Updated:
Pharmaceutical companies usually are involved in a lengthy process of 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 gains FDA approval or passes a clinical trial, there can be big upside.
The White House has promised reforms in the health care sector, such as changing the bidding process for drugs and shortening the FDA approval process. It has yet to be seen how much headway they can actually make with these reforms, even as Congress keeps attempting to repeal and replace Obamacare.
Keep in mind that short sellers betting against big pharma are taking on an added risk. They have to pay out the ongoing high dividends on top of the cost of borrowing the shares.
The August 15 short interest data have been compared with the previous figures, and short interest in most of these selected pharmaceutical stocks dropped.
Short interest in Pfizer Inc. (NYSE: PFE) decreased to 40.43 million shares from the previous 43.17 million. Its shares were last seen at $33.38, within a 52-week trading range of $29.83 to $35.18.
The number of Merck & Co. Inc. (NYSE: MRK) shares short fell to 15.06 million from 15.13 million in the previous period. Its shares were trading at $62.98, in a 52-week range of $58.29 to $66.80.
Teva Pharmaceutical Industries Ltd.’s (NYSE: TEVA) short interest decreased to 41.93 million from the previous level of 45.91 million. Shares were trading at $16.50, in a 52-week range of $15.85 to $52.66.
Bristol-Myers Squibb Co. (NYSE: BMY) short interest increased to 9.98 million shares from the previous reading of 8.81 million. Shares were trading at $58.55, within a 52-week range of $46.01 to $60.45.
The number of shares short in AbbVie Inc. (NYSE: ABBV) fell to 19.93 million, compared to the previous 21.03 million. The stock was trading at $72.30, in a 52-week range of $55.06 to $75.04.
Eli Lilly and Co.’s (NYSE: LLY) short interest increased to 11.78 million shares from the previous 10.29 million. The stock was trading at $79.01. The 52-week range is $64.18 to $86.72.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
