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I've put together a short list of overbought biotechs worth considering for short-term and potentially longer-term shorts. While I have listed a red flag or two for each of the below stocks, you may find many more through your own due diligence.

1. West Pharmaceutical Services, Inc. (NYSE:WST) manufactures components and systems for the packaging and delivery of injectable drugs, as well as delivery system components for the pharmaceutical, healthcare and consumer products industries.

WST Chart

Red Flag: High finished-product inventory levels.

The stock currently trades at $38.15 with the lowest analyst's 52 week price target being $37.95. The most recently reported short interest was 2.38M shares, representing about 7% of the 33.72M shares outstanding.

Valuation Metrics:

Market Cap

1.29B

Enterprise Value

1.51B

Trailing P/E

21.12

Forward P/E

15.09

PEG Ratio

1.16

Price/Sales

1.09

Price/Book

1.85

Enterprise Value/Revenue

1.29

Enterprise Value/EBITDA

8.11

Most Recent Income Data

Revenue

1.17B

Revenue Per Share

35.01

Qtrly Revenue Growth

8.20%

Gross Profit

318.10M

EBITDA

186.80M

Net Income Avl to Common

62.70M

Diluted EPS

1.81

Qtrly Earnings Growth

-5.10%

Balance Sheet

Total Cash

142.80M

Total Cash Per Share

4.24

Total Debt

378.00M

Total Debt/Equity

54.68

Current Ratio

2.20

Book Value Per Share

20.51

2. Antares Pharma, Inc. (AIS) is a company that focuses on self-injection pharmaceutical products and technologies and topical gel-based products.

AIS Chart

Red Flag: Negative operating free cash flow and, until recently, levered free cash flow (not uncommon for biotechs).

The stock currently trades at $2.16 with the lowest analyst's 52 week price target being $2. The most recently reported short interest was 9.16M shares, representing about 9% of the 103.51M shares outstanding.

Valuation Metrics

Market Cap

224.73M

Enterprise Value

201.61M

Forward P/E

18.09

Price/Sales

15.91

Price/Book

7.38

Enterprise Value/Revenue

14.09

Enterprise Value/EBITDA

-37.84

Most Recent Income Data

Revenue

14.31M

Revenue Per Share

0.16

Qtrly Revenue Growth

25.50%

Gross Profit

8.55M

EBITDA

-5.33M

Net Income Avl to Common

-5.53M

Diluted EPS

-0.06

Balance Sheet

Total Cash

26.11M

Total Cash Per Share

0.25

Total Debt

0.00

Current Ratio

4.42

Book Value Per Share

0.30

3. NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) is a biopharmaceutical company focused on the development of new treatment options for patients with gastrointestinal and endocrine disorders and medical needs.

NPSP Chart

Red Flag: Negative operating cash-flow, profit margin and net income.

The stock currently trades at $6.57 with the lowest analyst's 52 week price target being $5. The most recently reported short interest was 6.34M shares, representing about 7% of the 86.08M shares outstanding.

Valuation Metrics

Market Cap

566.41M

Enterprise Value

624.29M

PEG Ratio

-0.19

Price/Sales

5.71

Enterprise Value/Revenue

6.28

Enterprise Value/EBITDA

100.95

Most Recent Income Data

Revenue

99.43M

Revenue Per Share

1.30

Qtrly Revenue Growth

16.80%

Gross Profit

89.34M

EBITDA

6.18M

Net Income Avl to Common

-34.03M

Diluted EPS

-0.45

Balance Sheet

Total Cash

189.60M

Total Cash Per Share

2.20

Total Debt

246.61M

Total Debt/Equity

N/A

Current Ratio

5.52

Book Value Per Share

-0.45

4. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biopharmaceutical company that discovers, develops, and commercializes pharmaceutical products for the treatment of serious medical conditions.

REGN Chart

Red Flag: Negative enterprise value and net income.

The stock currently trades at $56.43 with the lowest analyst's 52 week price target being $56. The most recently reported short interest was 9.1M shares, representing about 10% of the 92.58M shares outstanding.

Valuation Metrics

Market Cap

5.15B

Enterprise Value

4.96B

PEG Ratio

-0.55

Price/Sales

11.05

Price/Book

11.78

Enterprise Value/Revenue

10.87

Enterprise Value/EBITDA

-34.63

Most Recent Income Data

Revenue

456.52M

Revenue Per Share

5.10

Qtrly Revenue Growth

-3.00%

Gross Profit

456.98M

EBITDA

-143.29M

Net Income Avl to Common

-182.91M

Diluted EPS

-2.04

Balance Sheet

Total Cash

245.50M

Total Cash Per Share

2.70

Total Debt

160.40M

Total Debt/Equity

37.46

Current Ratio

2.55

Book Value Per Share

4.70

I am in no way advocating that anyone short any of the above listed names. My intent is to draw attention to them and let you decide from there. Remember that the potential downside when shorting is limitless and timing is critical.

Source: 4 Overbought Biotechs For Potential Short-Term Shorts