Biotech: Dendreon and Regeneron Draw Short Interest

The short interest data is out from the July 31 settlement date and, with a couple of notable exceptions, short sellers generally have retreated from their gambles on biotech firms.

For the period that ended July 31, short sellers cut their position in Biogen Idec Inc. (NASDAQ: BIIB) 3.9% to 2.4 million. The short interest in Celgene Corp. (NASDAQ: CELG) dropped 11.8% to 6.3 million. Shares short in Gilead Sciences Inc. (NASDAQ: GILD) declined 1.9% to 18.0 million. Shares short in Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) fell 4.8% to 5.9 million. The short interest in VIVUS Inc. (NASDAQ: VVUS) dropped 8.9% to 13.8 million.

However, the short interest in Dendreon Corp. (NASDAQ: DNDN) was higher by 7.0% to 40.8 million, its largest short interest in months. And the short interest in Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) rose 7.2% to 4.9 million. Shares of Dendreon recently plunged after the company released disappointing second-quarter earnings results and announced a restructuring plan that will trim 600 jobs, or 41% of the company’s workforce. Furthermore, in July the Food and Drug Administration rejected expanded use of Regeneron’s drug for gout, but this month the FDA approved a colon cancer drug Regeneron developed with Sanofi (NYSE: SNY).

Also the short interest in Amgen Inc. (NASDAQ: AMGN) rose 3.9% to 12.5 million, and shares short in Illumina Inc. (NASDAQ: ILMN) climbed 2.0% to 21.4 million.

Dendreon is up about 3.3% in early trading to $4.65, in a 52-week range of $4.17 to $17.04. Regeneron is up 0.3% to $138.40 in a 52-week range of $47.11 to $145.04.