Top Health Care Short-Squeeze Plays

Another stock with a significant short interest is Sciele Pharma (SCRX Quote), a cardiovascular and diabetes pharmaceutical company that has a short ratio of about 18. The company just announced that the Food and Drug Administration has accepted the new-drug application submitted by Addrenex Pharmaceuticals for CloniBID to treat hypertension. Sciele licensed CloniBID from Addrenex for the treatment of hypertension in June 2007. Sciele earlier this week launched a $100 million stock-buyback plan. Sciele has a forward P/E ratio of 8 and a PEG ratio of 0.5.

Sciele appears in the portfolio of the Stratton Small-Cap Value Fund, which is rated four stars by Morningstar. Stratton also holds shares of CommScope (CTV Quote), which has a short ratio of 4, Anixter International (AXE Quote), with a short ratio of 10, and Terex (TEX Quote), with a 2.4 short ratio.

Prestige Brands (PBH Quote) is another heavily shorted stock, with a short ratio of 21. This distributor of over-the-counter health-care drugs and personal products has scheduled its earnings call for May 15. The stock has a forward P/E ratio of 12 and a PEG ratio of 1.5.

Prestige stock is owned by Millennium Partners, a $5 billion New York hedge fund. Millennium also own shares of Altria (MO Quote), which has a short ratio of 0.9, NRG Energy (NRG Quote), with a 5.4 short ratio, and McKesson (MCK Quote), with a 2.6 short ratio.

For more heavily shorted stocks in the sector, check out the Top Health-Care Short-Squeeze Plays at Stockpickr.com.