Health and Healthcare

Major Biotechs See Rising Tide of Short Interest

Chris Lange

Published: February 12, 2018 9:15 am

Last Updated: January 12, 2020 3:30 am

The short interest data are out for the most recent settlement date, January 31. 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 the fate of the ACA is 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 January 31 short interest data have been compared with the previous report, and short interest in most of the selected biotech stocks increased.

Amgen Inc. (NASDAQ: AMGN) saw its short interest rise to 10.15 million shares from the previous level of 9.67 million. Shares were last seen at $173.46, in a 52-week trading range of $152.16 to $201.23.

Short interest in Biogen Inc. (NASDAQ: BIIB) decreased to 3.32 million shares from the previous 3.40 million. The stock recently traded at $316.78, within a 52-week range of $244.28 to $370.57.

Celgene Corp.’s (NASDAQ: CELG) short interest for this settlement date increased to 14.38 million shares from the previous 13.04 million. Shares were changing hands at $92.51, in a 52-week trading range of $88.32 to $147.17.

Gilead Sciences Inc. (NASDAQ: GILD) saw its short interest rise to 22.49 million shares from 21.80 million in the previous period. Shares were trading at $79.32, in a 52-week range of $70.05 to $89.54.

The number of MannKind Corp. (NASDAQ: MNKD) shares short increased to 34.43 million. The previous reading was 32.97 million. The stock was last seen at $2.61, in a 52-week range of $0.67 to $6.96.

Alexion Pharmaceuticals Inc.’s (NASDAQ: ALXN) short interest dropped to 6.13 million shares, compared to the previous level of 6.65 million. Shares were trading at $108.60, in a 52-week range of $96.18 to $149.34.