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In this article, I will feature one biotech stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Galena Biopharma (GALE) focuses on developing oncology treatments to address major unmet medical needs to advance cancer care.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Galena's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Sanford HillsbergDirectorJan 17200,000No128,421 shares + 712,500 options19.2%
Steven KriegsmanDirectorJan 17-22450,000No5,000 shares + 612,500 options42.2%
Rudolph NisiDirectorJan 17200,000No3,500 shares + 512,500 options27.9%

There have been 850,000 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Galena's insider-trading activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
January 2014850,0000
December 201300
November 201300
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 850,000 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of January 2014 has seen all of the insider selling.

Financials

Galena reported the third-quarter financial results on November 6 with the following highlights:

Revenue$1.2 million
Net loss$9.3 million
Cash$54.2 million
Debt$9.8 million

Pipeline and upcoming milestones

Galena has one approved product and several product candidates in the pipeline.

(click to enlarge)

(Source: January presentation)

Galena has the following upcoming milestones.

(click to enlarge)

(Source: January presentation)

Competition

Galena's competitors include Dendreon (DNDN), and Verastem (VSTM). Here is a table comparing these companies.

CompanyGALEDNDNVSTM
Market Cap:637.73M459.79M365.21M
Employees:1297024
Qtrly Rev Growth (yoy):N/A-0.13N/A
Revenue:1.17M294.40MN/A
Gross Margin:0.740.36N/A
EBITDA:-26.90M-193.86M-37.75M
Operating Margin:-23.14-0.77N/A
Net Income:-31.93M-246.76M-37.80M
EPS:-0.40-1.63-1.76
P/E:N/AN/AN/A
PEG (5 yr expected):N/A-0.02N/A
P/S:573.851.67N/A
Insider Ownership:0.50%3.10%5.90%

Galena has the lowest insider ownership among these three companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

CompanyInsider buying / sharesInsider selling / shares
DNDN08,207
VSTM

152,981

0

Only Galena has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Galena, and there have not been any insiders buying Galena during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Galena has an insider ownership of 0.50%.

I believe Verastem could be the best pick out of these three companies currently based on the insider buying and relatively low valuation.

Source: Galena Biopharma: 3 Different Insiders Have Sold Shares This Year