Health and Healthcare

Major Pharma Sees Tremendous Rise in Short Interest

smartstock / Getty Images

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 February 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 massively to 155.95 million shares from the previous 42.75 million. The stock was trading at $42.93 Thursday morning, within a 52-week range of $34.32 to $46.47.

The number of Merck & Co. Inc. (NYSE: MRK) shares short rose to 40.59 million from 34.56 million in the previous period. Its shares were trading at $80.62, in a 52-week range of $52.83 to $81.29.

Bristol-Myers Squibb Co. (NYSE: BMY) short interest jumped to 60.97 million shares from the previous reading of 57.53 million. Shares traded at $50.96, in a 52-week trading range of $44.30 to $68.22.

The number of shares short in AbbVie Inc. (NYSE: ABBV) decreased to 22.19 million from the previous 25.31 million. The stock was trading at $79.41, and its 52-week range is $75.77 to $121.45.

Eli Lilly and Co.’s (NYSE: LLY) short interest increased to 35.27 million shares from the previous 28.03 million. The stock was trading at $125.68. The 52-week range is $74.51 to $126.48.

Teva Pharmaceutical Industries Ltd.’s (NYSE: TEVA) short interest decreased to 23.48 million from the previous level of 24.52 million. Shares were trading at $17.00, in a 52-week range of $14.59 to $25.96.

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

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.