BioDelivery Sciences: 4 Different Insiders Have Sold Shares This Month

Mar.31.14 | About: BioDelivery Sciences (BDSI)

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.

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Insider selling during the last 30 days

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

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Frank O'Donnell Executive Chairman March 26 50,000 No 2,472,606 shares 2.0%
Samuel Sears Director March 20 4,000 No 19,853 shares 16.8%
William Stone Director March 11 35,000 Yes 63,178 shares 35.7%
Andrew Finn EVP March 10-11 80,000 Yes 660,450 shares 10.8%
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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.

Month Insider selling / shares Insider buying / shares
March 2014 169,000 0
February 2014 130,737 0
January 2014 579,155 0
December 2013 50,000 0
November 2013 0 2,337
October 2013 0 0
September 2013 104,500 0
August 2013 6,825 15,100
July 2013 0 0
June 2013 77,689 3,400
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 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
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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.

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(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.

Company BDSI TEVA GALE DEPO
Market Cap: 384.41M 41.93B 261.69M 802.50M
Employees: 24 44,945 60 291
Qtrly Rev Growth (yoy): -0.80 0.03 N/A 0.53
Revenue: 11.36M 20.31B 2.49M 134.21M
Gross Margin: N/A 0.53 0.79 0.95
EBITDA: -55.05M 5.61B -33.39M 16.58M
Operating Margin: -4.97 0.20 -13.61 0.08
Net Income: -57.39M 1.27B -76.68M 43.31M
EPS: -1.51 1.49 -0.85 0.75
P/E: N/A 33.19 N/A 18.91
PEG (5 yr expected): N/A 11.69 N/A -5.87
P/S: 33.98 2.05 112.28 5.94
Insider Ownership: 17.83% N/A 1.01% 0.79%
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BioDelivery Sciences has the highest insider ownership among these four companies.

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

Company Insider buying / shares Insider selling / shares
TEVA N/A N/A
GALE 20,000 2,809,265
DEPO 0 102,744
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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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.