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For a look at what the “big money” thinks about a stock, one idea is to look at institutional buying trends.

We ran a screen on the biotech industry for stocks with the most significant net institutional selling over the current quarter, indicating that institutional investors like hedge funds think these names will underperform.

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.

Do you think these stocks deserve this negative attention? Use this list as a starting point for your own analysis.

List sorted by net institutional shares sold as a percent of share float.

1. Nabi Biopharmaceuticals (NASDAQ:NABI): Develops vaccines for nicotine addiction in the United States. Market cap of $78.90M. Net institutional shares sold over the current quarter at 9.5M, which is 27.80% of the company's 34.17M share float. The stock has lost 66.73% over the last year.

2. Pacific Biosciences of California, Inc. (NASDAQ:PACB): Develops, manufactures, and markets an integrated platform for genetic analysis. Market cap of $147.99M. Net institutional shares sold over the current quarter at 3.2M, which is 10.25% of the company's 31.21M share float. The stock is a short squeeze candidate, with a short float at 5.89% (equivalent to 8.39 days of average volume). It's been a rough couple of days for the stock, losing 5.26% over the last week.

3. Dendreon Corp. (NASDAQ:DNDN): Engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. Market cap of $1.27B. Net institutional shares sold over the current quarter at 13.2M, which is 8.97% of the company's 147.12M share float. The stock has had a good month, gaining 27.5%.

4. Momenta Pharmaceuticals Inc. (NASDAQ:MNTA): Specializes in the characterization and process engineering of complex molecules. Market cap of $819.84M. Net institutional shares sold over the current quarter at 2.7M, which is 7.09% of the company's 38.08M share float. The stock has had a couple of great days, gaining 6.38% over the last week.

5. Enzon Pharmaceuticals Inc. (NASDAQ:ENZN): Engages in the research and development of therapeutics for cancer patients with unmet medical needs. Market cap of $338.03M. Net institutional shares sold over the current quarter at 1.8M, which is 6.12% of the company's 29.43M share float. The stock is a short squeeze candidate, with a short float at 13.7% (equivalent to 24.78 days of average volume). The stock has lost 36.88% over the last year.

6. Acorda Therapeutics, Inc. (NASDAQ:ACOR): A commercial stage biopharmaceutical company, involves in the identification, development, and commercialization of therapies for multiple sclerosis (MS), spinal cord injury, and other nervous system disorders. Market cap of $892.18M. Net institutional shares sold over the current quarter at 2.0M, which is 5.88% of the company's 34.00M share float. The stock is a short squeeze candidate, with a short float at 12.64% (equivalent to 10.15 days of average volume). The stock has lost 13.96% over the last year.

7. ShangPharma Corporation (NYSE:SHP): Operates as a pharmaceutical and biotechnology research and development outsourcing company. Market cap of $172.42M. Net institutional shares sold over the current quarter at 333.4K, which is 5.41% of the company's 6.16M share float. The stock has lost 27.79% over the last year.

8. Charles River Laboratories International, Inc. (NYSE:CRL): Provides research models and laboratory animal support expertise to help its global partners advance their research and drug development efforts. Market cap of $1.40B. Net institutional shares sold over the current quarter at 2.6M, which is 5.35% of the company's 48.59M share float. The stock has lost 16.63% over the last year.

9. Sangamo Biosciences Inc. (NASDAQ:SGMO): Engages in the research, development, and commercialization of zinc finger DNA-binding proteins (ZFPs) for gene regulation and gene modification in the United States. Market cap of $147.97M. Net institutional shares sold over the current quarter at 2.6M, which is 5.22% of the company's 49.82M share float. The stock is a short squeeze candidate, with a short float at 10.28% (equivalent to 8.14 days of average volume). It's been a rough couple of days for the stock, losing 6.93% over the last week.

10. Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ): Develops and commercializes products for neurology and psychiatry primarily in the United States. Market cap of $1.64B. Net institutional shares sold over the current quarter at 1.3M, which is 4.94% of the company's 26.33M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). Might be undervalued at current levels, with a PEG ratio at 0.78, and P/FCF ratio at 12.63. The stock has had a good month, gaining 11.25%.

11. BioSpecifics Technologies Corp. (NASDAQ:BSTC): Involves in the development of an injectable collagenase for various indications. Market cap of $101.76M. Net institutional shares sold over the current quarter at -176.6K, which is 4.33% of the company's 4.08M share float. The stock is a short squeeze candidate, with a short float at 5.6% (equivalent to 15.67 days of average volume). The stock has had a couple of great days, gaining 6.38% over the last week.

12. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Market cap of $51.14B. Net institutional shares sold over the current quarter at 35.8M, which is 4.09% of the company's 875.21M share float. The stock has gained 9.5% over the last year.

13. Sinovac Biotech Ltd. (NASDAQ:SVA): Engages in the research, development, manufacture, and commercialization of vaccines against the hepatitis A, hepatitis B, and influenza viruses in the People's Republic of China. Market cap of $103.49M. Net institutional shares sold over the current quarter at 1.5M, which is 3.93% of the company's 38.17M share float. The stock has had a couple of great days, gaining 8.9% over the last week.

14. ViroPharma Inc. (VPHM): Engages in the development and commercialization of products that address serious diseases with a focus on products used by physician specialists or in hospital settings in the United States and internationally. Market cap of $1.67B. Net institutional shares sold over the current quarter at 2.5M, which is 3.82% of the company's 65.46M share float. The stock is a short squeeze candidate, with a short float at 13.6% (equivalent to 10.3 days of average volume). The stock has had a good month, gaining 12.5%.

15. Vanda Pharmaceuticals, Inc. (NASDAQ:VNDA): Focuses on the development and commercialization of products for the treatment of central nervous system disorders. Market cap of $140.78M. Net institutional shares sold over the current quarter at 962.1K, which is 3.66% of the company's 26.27M share float. The stock is a short squeeze candidate, with a short float at 6.06% (equivalent to 11.27 days of average volume). The stock has performed poorly over the last month, losing 10.05%.

16. Insmed Incorporated (NASDAQ:INSM): Focuses on the development of inhaled pharmaceuticals for the site-specific treatment of serious lung diseases. Market cap of $80.95M. Net institutional shares sold over the current quarter at 569.1K, which is 3.24% of the company's 17.55M share float. The stock is a short squeeze candidate, with a short float at 5.69% (equivalent to 9.33 days of average volume). The stock has lost 46.56% over the last year.

17. Transcept Pharmaceuticals, Inc. (NASDAQ:TSPT): Biotechnology Industry. Market cap of $95.05M. Net institutional shares sold over the current quarter at 156.3K, which is 2.73% of the company's 5.73M share float. The stock has performed poorly over the last month, losing 16.33%.

18. Cadence Pharmaceuticals Inc. (CADX): Focuses on in-licensing, developing, and commercializing product candidates principally for use in the hospital setting in the United States and Canada. Market cap of $211.93M. Net institutional shares sold over the current quarter at 1.2M, which is 2.70% of the company's 44.42M share float. The stock is a short squeeze candidate, with a short float at 16.35% (equivalent to 25.13 days of average volume). The stock has performed poorly over the last month, losing 17.84%.

19. PDL BioPharma, Inc. (NASDAQ:PDLI): Engages in the management of antibody humanization patents and royalty assets, which consist of Queen et al. Market cap of $858.56M. Net institutional shares sold over the current quarter at 3.0M, which is 2.64% of the company's 113.85M share float. The stock is a short squeeze candidate, with a short float at 11.79% (equivalent to 7.89 days of average volume). The stock has gained 13.7% over the last year.

20. Chelsea Therapeutics International Ltd. (NASDAQ:CHTP): A development stage pharmaceutical company, focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of various human diseases. Market cap of $327.81M. Net institutional shares sold over the current quarter at 1.2M, which is 2.48% of the company's 48.39M share float. The stock is a short squeeze candidate, with a short float at 10.67% (equivalent to 15.88 days of average volume). The stock has had a good month, gaining 15.22%.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 20 Biotech Stocks That Hedge Funds Are Selling