Biotech: Dendreon and Regeneron Draw Short Interest

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By Trey Thoelcke Published

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The short interest data is out from the July 31 settlement date and, with a couple of notable exceptions, short sellers generally have retreated from their gambles on biotech firms.

For the period that ended July 31, short sellers cut their position in Biogen Idec Inc. (NASDAQ: BIIB) 3.9% to 2.4 million. The short interest in Celgene Corp. (NASDAQ: CELG) dropped 11.8% to 6.3 million. Shares short in Gilead Sciences Inc. (NASDAQ: GILD) declined 1.9% to 18.0 million. Shares short in Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) fell 4.8% to 5.9 million. The short interest in VIVUS Inc. (NASDAQ: VVUS) dropped 8.9% to 13.8 million.

However, the short interest in Dendreon Corp. (NASDAQ: DNDN) was higher by 7.0% to 40.8 million, its largest short interest in months. And the short interest in Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) rose 7.2% to 4.9 million. Shares of Dendreon recently plunged after the company released disappointing second-quarter earnings results and announced a restructuring plan that will trim 600 jobs, or 41% of the company’s workforce. Furthermore, in July the Food and Drug Administration rejected expanded use of Regeneron’s drug for gout, but this month the FDA approved a colon cancer drug Regeneron developed with Sanofi (NYSE: SNY).

Also the short interest in Amgen Inc. (NASDAQ: AMGN) rose 3.9% to 12.5 million, and shares short in Illumina Inc. (NASDAQ: ILMN) climbed 2.0% to 21.4 million.

Dendreon is up about 3.3% in early trading to $4.65, in a 52-week range of $4.17 to $17.04. Regeneron is up 0.3% to $138.40 in a 52-week range of $47.11 to $145.04.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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