BioCentury
ARTICLE | Finance

Show us your shorts

Debating the impact of BIO’s proposal on short disclosures

July 29, 2017 7:16 AM UTC

Absent any data showing a sustained impact of manipulative short selling on biotech valuations or their ability to raise capital, it is difficult to discern what direct benefit biotech companies would gain from BIO’s call for short sale disclosures. It does, however, appear that long investors could benefit from reduced volatility in stocks they hold.

On the flip side, certain shorts could be forced to rethink their tactics, possibly including the need to take on more risk...