Galena Biopharma: 3 Different Insiders Have Sold Shares This Year

Jan.24.14 | About: Galena Biopharma, (GALE)

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Sanford Hillsberg Director Jan 17 200,000 No 128,421 shares + 712,500 options 19.2%
Steven Kriegsman Director Jan 17-22 450,000 No 5,000 shares + 612,500 options 42.2%
Rudolph Nisi Director Jan 17 200,000 No 3,500 shares + 512,500 options 27.9%
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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.

Month Insider selling / shares Insider buying / shares
January 2014 850,000 0
December 2013 0 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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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
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Pipeline and upcoming milestones

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

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(Source: January presentation)

Galena has the following upcoming milestones.

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(Source: January presentation)

Competition

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

Company GALE DNDN VSTM
Market Cap: 637.73M 459.79M 365.21M
Employees: 12 970 24
Qtrly Rev Growth (yoy): N/A -0.13 N/A
Revenue: 1.17M 294.40M N/A
Gross Margin: 0.74 0.36 N/A
EBITDA: -26.90M -193.86M -37.75M
Operating Margin: -23.14 -0.77 N/A
Net Income: -31.93M -246.76M -37.80M
EPS: -0.40 -1.63 -1.76
P/E: N/A N/A N/A
PEG (5 yr expected): N/A -0.02 N/A
P/S: 573.85 1.67 N/A
Insider Ownership: 0.50% 3.10% 5.90%
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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.

Company Insider buying / shares Insider selling / shares
DNDN 0 8,207
VSTM

152,981

0
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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.

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.