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 September 15 short interest data have been compared with the previous figures, and short interest in most of these selected pharmaceutical stocks increased.
Short interest in Pfizer Inc. (NYSE: PFE) increased to 50.67 million shares from the previous 45.07 million. Its shares were last seen at $35.30, within a 52-week trading range of $29.83 to $36.21.
The number of Merck & Co. Inc. (NYSE: MRK) shares short jumped to 20.65 million from 19.18 million in the previous period. Its shares were trading at $64.76, in a 52-week range of $58.29 to $66.80.
Teva Pharmaceutical Industries Ltd.’s (NYSE: TEVA) short interest decreased to 42.27 million from the previous level of 45.76 million. Shares were trading at $17.26, in a 52-week range of $15.22 to $49.86.
Bristol-Myers Squibb Co. (NYSE: BMY) short interest increased to 11.59 million shares from the previous reading of 10.09 million. Shares were trading at $62.93, within a 52-week range of $46.01 to $63.74.
The number of shares short in AbbVie Inc. (NYSE: ABBV) increased to 20.80 million, compared to the previous 19.97 million. The stock was trading at $85.35, in a 52-week range of $55.06 to $89.69.
Eli Lilly and Co.’s (NYSE: LLY) short interest decreased slightly to 11.52 million shares from the previous 11.62 million. The stock was trading at $84.22. The 52-week range is $64.18 to $86.72.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
