Short interest in RGEN increased from 1.5 million shares to 2.1 million shares between Nov 15 and Dec1. Dec 1 is the most recent reporting date on short interest.
Obviously someone has a trading strategy that includes shorting RGEN. It is impossible to know for sure what this trading strategy may be. Maybe someone is simultaneously shorting and going long on RGEN
Usually, an increasing short position puts downward pressure on the stock price. Not with RGEN. Even with this increasing short position RGEN goes higher.
Anyway, shorting has no influenze on the value or prospects for RGEN but shorting can affect share price negatively and covering short positions can affect share price positively.
With 3 drugs under fda scrutiny & results expected first Q = strong chance that short bet will be a good one as odds on 2 out of 3 failing are fairly good. So probably see $0.50-$1.00 down on da bad news.
Another important reason is the transition at year end 2013 NOT RECEIVING ROYLATIES FROM ORENCIA SALES and nothing announced to take up that significant PROFIT. So short term the shorts do have a case and they are putting their money up to back it.