Short Sellers Become More Selective on Major Pharma

Health and Healthcare

Published: October 12, 2015 9:25 am

Last Updated: October 12, 2015 9:26 am

The short interest data have been released for the September 30 settlement date. Pharmaceutical companies are usually 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 September 30 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 fall to 72.70 million shares from the previous 73.59 million. In February, short interest spiked incredibly, and since that time it has slowly backed off. The highest short interest reading on the year was 207.4 million. Shares of Pfizer closed Friday at $33.24, within a 52-week trading range of $27.51 to $36.46.

Merck & Co. Inc. (NYSE: MRK) saw short interest increase to 40.97 million shares from 40.05 million in the previous period. The current reading is the highest in the past 52 weeks. Merck shares closed Friday at $50.95, in a 52-week trading range of $45.69 to $63.62.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) short interest fell to 7.57 million shares. The previous level was 9.15 million. The highest level in the past 52 weeks was 10.25 million in mid-August. Shares of Teva closed Friday at $58.96, in a 52-week range of $47.36 to $72.31.

Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest increase to 25.65 million shares from the previous reading of 22.29 million. Bristol-Myers shares closed Friday at $61.44, within a 52-week range of $47.55 to $70.54.

AbbVie Inc. (NYSE: ABBV) short interest increased to 32.17 million shares from the previous level of 31.77 million. Short interest has backed way off its highest level year to date in May; the highest reading in the past 52 weeks was 111.88 million in October 2014. Shares of AbbVie closed Friday at $55.64, in a 52-week trading range of $51.88 to $71.60.

ALSO READ: The 6 Most Shorted NYSE Stocks

It’s Your Money, Your Future—Own It (sponsor)

Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.

If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.