Jim Chanos Steps Up Health-Care Shorts (AZN, SI)

On CNBC, famed short seller and hedge fund manager Jim Chanos said he was shorting AstraZeneca Plc (NYSE: AZN) and Siemens AG (NYSE: SI) as part of his broader call for a fall in health-care stocks.

Chanos said 30% of AstraZeneca's revenue is threatened due to generic competition and 20% comes from U.S. Medicare and Medicaid prescription drug plans.

Chanos said the current valuation of health-care stocks already reflects the view that the aging Baby Boomer will drive demand for services.

Chanos said the health-care industry is bloated and the hefty profit margins of the these companies is at risk as Washington searches for ways to cut spending.

Chanos is shorting a broad-range of health-care stocks, including HMOs, big pharmaceutical companies like AstraZeneca, large equipment makers like Siemens and smaller equipment makers that he declined to identify.

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