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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 (NASDAQ: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.


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)


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

Market Cap:637.73M459.79M365.21M
Qtrly Rev Growth (yoy):N/A-0.13N/A
Gross Margin:0.740.36N/A
Operating Margin:-23.14-0.77N/A
Net Income:-31.93M-246.76M-37.80M
PEG (5 yr expected):N/A-0.02N/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



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


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.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in VSTM, over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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