Health and Healthcare
Short Sellers Grow More Selective on Major Pharma Stocks
Published:
Last Updated:
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.
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 April 13 short interest data have been compared with the previous figures, and short interest moves in these selected pharmaceutical stocks were mixed.
Short interest in Pfizer Inc. (NYSE: PFE) decreased to 81.03 million shares from the previous 98.32 million. The stock was last seen trading at $37.06, within a 52-week range of $31.67 to $39.43.
The number of Merck & Co. Inc. (NYSE: MRK) shares short decreased to 22.95 million from 23.67 million in the previous period. Its shares were trading at $60.09, in a 52-week range of $52.83 to $66.41.
Teva Pharmaceutical Industries Ltd.’s (NYSE: TEVA) short interest decreased to 55.84 million from the previous level of 59.40 million. Shares were trading at $17.56, in a 52-week range of $10.85 to $33.82.
Bristol-Myers Squibb Co. (NYSE: BMY) short interest increased to 14.32 million shares from the previous reading of 11.14 million. Shares were trading at $51.58, within a 52-week range of $50.66 to $70.05.
The number of shares short in AbbVie Inc. (NYSE: ABBV) increased to 15.66 million, compared to the previous 15.25 million. The stock was trading at $91.36, in a 52-week range of $64.61 to $125.86.
Eli Lilly and Co.’s (NYSE: LLY) short interest decreased to 9.66 million shares from the previous 10.53 million. The stock was trading at $80.09. The 52-week range is $73.69 to $89.09.
24/7 Wall St.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
