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If you're interested in the biotech industry, the following list might be of interest to you.

To create this list, we started with a universe of about 45 biotech stocks. We wanted to identify the names that are being dragged down by extreme pessimism, so we collected data on institutional money flows, and identified the biotech names that have seen the most significant selling during the current quarter.

Big money managers think these biotech stocks are in trouble--do you agree? If you have any of these in your portfolio, are you worried?

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

List sorted by relative size of institutional selling.

1. Cephalon Inc. (CEPH): Biotechnology Industry. Market cap of $6.27B. Net institutional shares sold over the current quarter at 13.2M, which is 18.67% of the company's 70.71M share float. Relatively low correlation to the market (beta = 0.38), which may be appealing to risk averse investors. The stock has gained 42.13% over the last year.

2. Albany Molecular Research Inc. (AMRI): Biotechnology Industry. Market cap of $103.63M. Net institutional shares sold over the current quarter at 2.7M, which is 12.15% of the company's 22.22M share float.

3. Charles River Laboratories International, Inc. (CRL): Biotechnology Industry. Market cap of $1.66B. Net institutional shares sold over the current quarter at 5.8M, which is 11.49% of the company's 50.50M share float. The stock has performed poorly over the last month, losing 17.82%.

4. Arena Pharmaceuticals, Inc. (ARNA): Biotechnology Industry. Market cap of $186.83M. Net institutional shares sold over the current quarter at 12.8M, which is 8.84% of the company's 144.74M share float. The stock is a short squeeze candidate, with a short float at 13.56% (equivalent to 7.6 days of average volume).

5. Questcor Pharmaceuticals, Inc. (QCOR): Biotechnology Industry. Market cap of $1.67B. Net institutional shares sold over the current quarter at 4.1M, which is 7.47% of the company's 54.91M share float. The stock is a short squeeze candidate, with a short float at 10.38% (equivalent to 5.12 days of average volume). The stock has performed poorly over the last month, losing 17.48%.

6. Dyax Corp. (DYAX): Biotechnology Industry. Market cap of $126.40M. Net institutional shares sold over the current quarter at 3.5M, which is 3.83% of the company's 91.43M share float. The stock is a short squeeze candidate, with a short float at 6.07% (equivalent to 8.26 days of average volume). The stock has performed poorly over the last month, losing 25.58%.

7. Nektar Therapeutics (NKTR): Biotechnology Industry. Market cap of $604.14M. Net institutional shares sold over the current quarter at 3.7M, which is 3.55% of the company's 104.25M share float. The stock has had a couple of great days, gaining 6.24% over the last week. The stock has performed poorly over the last month, losing 18.01%.

8. Vanda Pharmaceuticals, Inc. (VNDA): Biotechnology Industry. Market cap of $164.95M. Net institutional shares sold over the current quarter at 926.5K, which is 3.53% of the company's 26.26M share float. The stock is a short squeeze candidate, with a short float at 5.84% (equivalent to 10.28 days of average volume).

9. Acorda Therapeutics, Inc. (ACOR): Biotechnology Industry. Market cap of $1.0B. Net institutional shares sold over the current quarter at 1.1M, which is 3.47% of the company's 31.74M share float. The stock is a short squeeze candidate, with a short float at 11.12% (equivalent to 7.54 days of average volume). The stock has lost 14.22% over the last year.

10. QLT Inc. (QLTI): Biotechnology Industry. Market cap of $309.69M. Net institutional shares sold over the current quarter at 1.1M, which is 3.46% of the company's 31.79M share float. The stock has gained 9.73% over the last year.

*Institutional data sourced from Fildelity (sourced on Friday afternoon, Aug 26)

Source: 10 Biotech Stocks Being Dumped By Big Money Managers