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 November 30 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 50.33 million shares from the previous 47.36 million. The stock was last seen trading at $44.46, within a 52-week range of $33.20 to $46.47.
The number of Merck & Co. Inc. (NYSE: MRK) shares short dropped to 64.47 million from 69.03 million in the previous period. Its shares were trading at $77.78, in a 52-week range of $52.83 to $80.19.
Bristol-Myers Squibb Co. (NYSE: BMY) short interest rose to 12.55 million shares from the previous reading of 11.92 million. Shares were last seen at $53.75, in a 52-week trading range of $46.94 to $70.05.
The number of shares short in AbbVie Inc. (NYSE: ABBV) increased slightly to 30.95 million from the previous 30.38 million. The stock was trading at $89.46, and its 52-week range is $77.50 to $125.86.
Eli Lilly and Co.’s (NYSE: LLY) short interest fell to 8.58 million shares from the previous 10.18 million. The stock was trading at $114.92. The 52-week range is $73.69 to $119.84.
Teva Pharmaceutical Industries Ltd.’s (NYSE: TEVA) short interest increased to 37.19 million from the previous level of 34.76 million. Shares were trading at $18.88, in a 52-week range of $10.85 to $25.96.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
