With the Allergan (AGN US) Pfizer (PFE US) deal terminated, short sellers in Pfizer shares closed out their month long trade and returned Pfizer’s short interest back to pre-deal announcement levels. Pfizer’s borrows rose $4.5 billion, or 88%, in early March as merger arbitrage traders piled into the mega cap trade. These positions have been unwound in the last week, with over $5 billion in buy to covers executed and stock borrows returned. Other Pharmaceutical companies that had significant buy-to-covers this past week were Mallinckrodt LLC (MNK US) down $200 million; Daiichi Sankyo Co (4568 JP) down $150 million and Shire PLC ADR (SHP US) down $150 million. Only two Pharmaceutical companies had significant new short selling last week with Sanofi-Aventis (SAN FP) and Merck (MRK US) who were both up $250 million.
For more information on the above analysis, please contact:
Ihor Dusaniwsky, Head of Research, S3 Partners, LLC
Ihor.Dusaniwsky@S3Partners.net
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