Biotech leader Biogen Inc (BIIB) is down 29% on news that it is pulling its Alzheimer disease drug candidate â€śAducanumabâ€ť from late stage trials due to lack of efficacy.
BIIB short interest is $952 million; 2.97 million shares short; 1.52% of float; 0.330% stock borrow fee. Biogen is the 6th most shorted stock in the worldwide biotechnology sector.
BIIB short selling has been declining this year, with 847 million shares, -22.21%, covered in 2019 and very little activity in March overall, a slight increase of 31 thousand shares, +1.05%.
Short sellers were down $84 million, -8.40%, in mark-to-market losses in 2019, but with todayâ€™s price move short sellers have turned profitable in 2019 with a $273 million windfall in mark-to-market profits today.
We are seeing increased short selling in the name today, but with much of the price move occurring at the open, new shorts are only getting a small portion of todayâ€™s price move in their portfolioâ€™s. With such a large one day move, there is the fear of a price snap-back from an over-reaction on the news. We will see over the next several days whether short sellers are going to take their short term profits and run or build their positions anticipating longer term weakness in the stock.
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Managing Director Predictive Analytics, S3 Partners, LLC
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