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 October 31 short interest data have been compared with the previous figures, and short interest in these selected pharmaceutical stocks decreased.
Short interest in Pfizer Inc. (NYSE: PFE) decreased to 51.41 million shares from the previous 58.33 million. Its shares were last seen at $34.84, within a 52-week trading range of $30.51 to $36.78.
The number of Merck & Co. Inc. (NYSE: MRK) shares short dropped to 16.96 million from 19.10 million in the previous period. Its shares were trading at $55.32, in a 52-week range of $54.41 to $66.80.
Teva Pharmaceutical Industries Ltd.’s (NYSE: TEVA) short interest decreased to 67.93 million from the previous level of 68.24 million. Shares were trading at $11.70, in a 52-week range of $10.85 to $41.19.
Bristol-Myers Squibb Co. (NYSE: BMY) short interest decreased to 7.44 million shares from the previous reading of 9.44 million. Shares were trading at $60.90, within a 52-week range of $46.01 to $66.10.
The number of shares short in AbbVie Inc. (NYSE: ABBV) decreased to 12.64 million, compared to the previous 14.21 million. The stock was trading at $93.92, in a 52-week range of $58.60 to $98.26.
Eli Lilly and Co.’s (NYSE: LLY) short interest decreased to 9.77 million shares from the previous 12.64 million. The stock was trading at $82.60. The 52-week range is $64.18 to $89.09.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.