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Summary

  • The stock was sold by three insiders within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Two of these three insiders decreased their holdings by more than 10%.

BioCryst Pharmaceuticals (NASDAQ:BCRX) designs, optimizes, and develops novel drugs that block key enzymes involved in the pathogenesis of diseases.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of BioCryst's insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Yarlagadda BabuSVPMarch 440,642No208,195 shares16.3%
Alane BarnesVPMarch 440,734No71,622 shares + 190,826 options13.4%
Thomas StaabCFOMarch 43,000No126,616 shares + 28,000 options1.9%

There have been 84,376 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of BioCryst's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
March 201484,3760
February 201400
January 201400
December 201300
November 201303,000
October 201300
September 201300
August 201301,136,364
July 201300
June 201300
May 201300
April 201300
March 201303,000
February 201300
January 201300

There have been 84,376 shares sold, and there have been 1,142,364 shares purchased by insiders since January 2013.

Financials

BioCryst reported the full-year 2013 financial results on February 26 with the following highlights:

Revenue$17.3 million
Net loss$30.1 million
Cash$40.8 million
Debt$30.0 million

(click to enlarge)

(Source: Earnings presentation)

The three insiders sold their shares after these results.

Outlook

BioCryst expects its 2014 net operating cash use to be in the range of $35 million to $43 million, and its operating expenses to be in the range of $48 million to $59 million. In addition, based upon forecasted development activity and the related revenue under the company's U.S. Government contracts, BioCryst expects its 2014 revenue to decrease from 2013 levels.

(click to enlarge)

(Source: Investor presentation)

Pipeline

BioCryst's core development programs include BCX4161 and two second generation oral inhibitors of plasma kallikrein for hereditary angioedema; peramivir, a viral neuraminidase inhibitor for the treatment of influenza and BCX4430, a broad spectrum antiviral for hemorrhagic fevers.

Peramivir has been approved in Japan and Korea. It is estimated that more than one million patients have received peramivir treatment to date.

(Source: BioCryst)

Upcoming milestones

BioCryst's upcoming milestones include the following.

(click to enlarge)

(Source: Investor presentation)

Competition

BioCryst's peramivir competitors include GlaxoSmithKline (NYSE:GSK) with Relenza, and Roche (OTCQX:RHHBY) with Tamiflu. Here is a table comparing these companies.

CompanyBCRXGSKRHHBY
Market Cap:677.18M133.03B125.83B
Employees:4099,45185,080
Qtrly Rev Growth (yoy):1.580.020.01
Revenue:17.33M42.60B52.08B
Gross Margin:-1.180.700.75
EBITDA:-25.39M13.94B20.03B
Operating Margin:-1.480.280.34
Net Income:-30.11M8.74B11.96B
EPS:-0.553.553.46
P/E:N/A15.6310.69
PEG (5 yr expected):-2.871.592.53
P/S:41.973.142.44

BioCryst has the highest P/S ratio among these three companies. BioCryst's peramivir has a PDUFA action date on December 23.

Conclusion

There have been three different insiders selling BioCryst, and there have not been any insiders buying BioCryst during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. BioCryst has an insider ownership of 2.00%.

Before going short BioCryst, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Source: BioCryst Pharmaceuticals: 3 Different Insiders Have Sold Shares This Month