Health and Healthcare
Short Sellers Hike Bets in 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 is yet to be seen how much headway it actually can 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 December 14 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 59.61 million shares from the previous 50.33 million. The stock was trading at $41.90 Thursday morning, within a 52-week range of $33.20 to $46.47.
The number of Merck & Co. Inc. (NYSE: MRK) shares short rose to 65.16 million from 64.47 million in the previous period. Its shares were trading at $72.95, in a 52-week range of $52.83 to $80.19.
Bristol-Myers Squibb Co. (NYSE: BMY) short interest rose to 12.83 million shares from the previous reading of 12.55 million. Shares traded at $48.85, in a 52-week trading range of $46.94 to $70.05.
The number of shares short in AbbVie Inc. (NYSE: ABBV) decreased slightly to 30.86 million from the previous 30.95 million. The stock was trading at $88.90, and its 52-week range is $81.50 to $125.86.
Eli Lilly and Co.’s (NYSE: LLY) short interest increased to 9.32 million shares from the previous 8.58 million. The stock was trading at $110.40. The 52-week range is $73.69 to $119.84.
Teva Pharmaceutical Industries Ltd.’s (NYSE: TEVA) short interest increased to 44.52 million from the previous level of 37.19 million. Shares were trading at $15.30, in a 52-week range of $10.85 to $25.96.
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
