Short Interest in Major Pharma Takes a Giant Leap

Health and Healthcare

Published: December 10, 2015 8:50 am

Last Updated: January 13, 2020 4:15 pm

The short interest data have been released for the November 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 November 30 short interest data have been compared with the previous figures, and for most of the selected pharmaceutical stocks, short interest was up.

Pfizer Inc. (NYSE: PFE) saw its short interest jump to 65.52 million shares from the previous 49.41 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 Wednesday at $32.29, within a 52-week trading range of $28.47 to $36.46.

Merck & Co. Inc. (NYSE: MRK) saw short interest increase to 24.81 million shares from 23.78 million in the previous period. Merck shares closed Wednesday at $52.82, in a 52-week trading range of $45.69 to $63.62.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) short interest rose to 7.19 million shares. The previous level was 4.80 million. The highest level in the past 52 weeks was 10.25 million in mid-August. Shares of Teva closed Wednesday at $65.46, in a 52-week range of $54.17 to $72.31.

Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest increase to 23.30 million shares from the previous reading of 20.83 million. Bristol-Myers shares closed Wednesday at $68.56, within a 52-week range of $51.82 to $70.54.

AbbVie Inc. (NYSE: ABBV) short interest increased to 20.23 million shares from the previous level of 17.52 million. Short interest has backed way off its highest level year to date in May. Shares of AbbVie closed Wednesday at $56.03, in a 52-week trading range of $45.45 to $71.60.