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Summary

  • Four insiders sold BioDelivery Sciences stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Three of these four insiders decreased their holdings by more than 10%.

BioDelivery Sciences International (NASDAQ:BDSI) engages in the development and commercialization of therapeutics in the areas of pain management and oncology supportive care.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of BioDelivery Sciences' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Frank O'DonnellExecutive ChairmanMarch 2650,000No2,472,606 shares2.0%
Samuel SearsDirectorMarch 204,000No19,853 shares16.8%
William StoneDirectorMarch 1135,000Yes63,178 shares35.7%
Andrew FinnEVPMarch 10-1180,000Yes660,450 shares10.8%

There have been 169,000 shares sold by insiders during the last 30 days. William Stone and Andrew Finn sold shares pursuant to the Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of BioDelivery Sciences' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
March 2014169,0000
February 2014130,7370
January 2014579,1550
December 201350,0000
November 201302,337
October 201300
September 2013104,5000
August 20136,82515,100
July 201300
June 201377,6893,400
May 201300
April 201300
March 201300
February 201300
January 201300

There have been 1,117,906 shares sold, and there have been 20,837 shares purchased by insiders since January 2013.

Financials

BioDelivery Sciences reported the full-year 2013 financial results on March 14 with the following highlights:

Revenue$11.4 million
Net loss$57.4 million
Cash$23.2 million
Debt$19.2 million

Two of these four insiders sold their shares after these results.

On February 13, BioDelivery Sciences closed a $60 million financing.

Pipeline and upcoming milestones

BioDelivery Sciences has one approved product and several product candidates in the pipeline.

(Source: BioDelivery Sciences)

BioDelivery Sciences' upcoming milestones include the following.

(click to enlarge)

(Source: Investor presentation)

Competition

BioDelivery Sciences' competitors include Teva Pharmaceutical Industries (NYSE:TEVA) with Actiq and Fentora, Galena Biopharma (NASDAQ:GALE) with Abstral, and DepoMed (NASDAQ:DEPO) with Lazanda. Here is a table comparing these companies.

CompanyBDSITEVAGALEDEPO
Market Cap:384.41M41.93B261.69M802.50M
Employees:2444,94560291
Qtrly Rev Growth (yoy):-0.800.03N/A0.53
Revenue:11.36M20.31B2.49M134.21M
Gross Margin:N/A0.530.790.95
EBITDA:-55.05M5.61B-33.39M16.58M
Operating Margin:-4.970.20-13.610.08
Net Income:-57.39M1.27B-76.68M43.31M
EPS:-1.511.49-0.850.75
P/E:N/A33.19N/A18.91
PEG (5 yr expected):N/A11.69N/A-5.87
P/S:33.982.05112.285.94
Insider Ownership:17.83%N/A1.01%0.79%

BioDelivery Sciences has the highest insider ownership among these four companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
TEVAN/AN/A
GALE20,0002,809,265
DEPO0102,744

DepoMed has also seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling BioDelivery Sciences, and there have not been any insiders buying BioDelivery Sciences during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. BioDelivery Sciences has an insider ownership of 17.83%.

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

Source: BioDelivery Sciences: 4 Different Insiders Have Sold Shares This Month