Short Sellers Become More Selective on Major Pharma
The September 30 short interest data have been compared with the previous figures, and for most of the selected pharmaceutical stocks, short interest was mixed.
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The short interest data have been released for the September 30 settlement date. Pharmaceutical companies are usually involved in a lengthy process in 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 is approved or passes a clinical trial, there can be big upside.
The September 30 short interest data have been compared with the previous figures, and for most of the selected pharmaceutical stocks, short interest was mixed.
Pfizer Inc. (NYSE: PFE) saw its short interest fall to 72.70 million shares from the previous 73.59 million. In February, short interest spiked incredibly, and since that time it has slowly backed off. The highest short interest reading on the year was 207.4 million. Shares of Pfizer closed Friday at $33.24, within a 52-week trading range of $27.51 to $36.46.
Merck & Co. Inc. (NYSE: MRK) saw short interest increase to 40.97 million shares from 40.05 million in the previous period. The current reading is the highest in the past 52 weeks. Merck shares closed Friday at $50.95, in a 52-week trading range of $45.69 to $63.62.
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) short interest fell to 7.57 million shares. The previous level was 9.15 million. The highest level in the past 52 weeks was 10.25 million in mid-August. Shares of Teva closed Friday at $58.96, in a 52-week range of $47.36 to $72.31.
Bristol-Myers Squibb Co. (NYSE: BMY) saw its short interest increase to 25.65 million shares from the previous reading of 22.29 million. Bristol-Myers shares closed Friday at $61.44, within a 52-week range of $47.55 to $70.54.
AbbVie Inc. (NYSE: ABBV) short interest increased to 32.17 million shares from the previous level of 31.77 million. Short interest has backed way off its highest level year to date in May; the highest reading in the past 52 weeks was 111.88 million in October 2014. Shares of AbbVie closed Friday at $55.64, in a 52-week trading range of $51.88 to $71.60.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
