Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you like to follow the stocks the smart money is buying? If so, you may also be interested in the stocks they're selling.

We ran a screen on the biotech industry for stocks with bearish sentiment from institutional investors (such as hedge funds) with significant net institutional selling over the previous quarter (i.e. selling in the fourth quarter of 2011 reported over the last three months). This indicates that they expect these names to underperform in the near future.

Interactive Chart: Press Play to compare changes in market cap 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 names will buck the trend and move higher? Use this list as a starting point for your own analysis.

1. Affymax, Inc. (OTCQB:AFFY): Engages in the development of drugs for the treatment of serious and life-threatening conditions. Net institutional sales in the current quarter at -1.8M shares, which represents about 5.92% of the company's float of 30.40M shares.

2. Agenus Inc. (AGEN): Develops and commercializes immunotherapies for cancer and infectious diseases. Net institutional sales in the current quarter at -982.3K shares, which represents about 4.95% of the company's float of 19.85M shares.

3. Amgen Inc. (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. Net institutional sales in the current quarter at -59.0M shares, which represents about 7.46% of the company's float of 790.53M shares.

4. BioSante Pharmaceuticals, Inc. (BPAX): Develops products for female sexual health and oncology. Net institutional sales in the current quarter at -17.4M shares, which represents about 16.34% of the company's float of 106.47M shares.

5. BioSpecifics Technologies Corp. (BSTC): Involves in the development of an injectable collagenase for various indications. Net institutional sales in the current quarter at -185.5K shares, which represents about 4.16% of the company's float of 4.46M shares.

6. Charles River Laboratories International, Inc. (CRL): Provides research models and laboratory animal support expertise to help its global partners advance their research and drug development efforts. Net institutional sales in the current quarter at -1.8M shares, which represents about 3.96% of the company's float of 45.42M shares.

7. InterMune Inc. (ITMN): Focuses on developing and commercializing therapies in pulmonology and hepatology. Net institutional sales in the current quarter at -3.5M shares, which represents about 6.49% of the company's float of 53.96M shares.

8. NuPathe, Inc. (PATH): Focuses on the development and commercialization of branded therapeutics for diseases of the central nervous system, including neurological and psychiatric disorders. Net institutional sales in the current quarter at -214.0K shares, which represents about 4.59% of the company's float of 4.66M shares.

9. Sangamo Biosciences Inc. (SGMO): Engages in the research, development and commercialization of zinc finger DNA-binding proteins for gene regulation and gene modification in the United States. Net institutional sales in the current quarter at -1.7M shares, which represents about 3.41% of the company's float of 49.81M shares.

10. Sequenom Inc. (SQNM): Provides products, services, diagnostic testing, applications and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications and agricultural and livestock research. Net institutional sales in the current quarter at -5.0M shares, which represents about 4.64% of the company's float of 107.71M shares.

11. Sinovac Biotech Ltd. (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. Net institutional sales in the current quarter at -1.6M shares, which represents about 4.27% of the company's float of 37.51M shares.

12. Savient Pharmaceuticals, Inc. (SVNT): Focuses on developing KRYSTEXXA, a biologic PEGylateduricase in the United States. Net institutional sales in the current quarter at -3.5M shares, which represents about 6.93% of the company's float of 50.49M shares.

13. Theratechnologies Inc. (THER): Engages in the discovery and development of therapeutic peptide products with a focus on growth-hormone releasing factor peptides. Net institutional sales in the current quarter at -1.8M shares, which represents about 3.33% of the company's float of 54.11M shares.

14. Vanda Pharmaceuticals, Inc. (VNDA): Focuses on the development and commercialization of products for the treatment of central nervous system disorders. Net institutional sales in the current quarter at -871.5K shares, which represents about 3.44% of the company's float of 25.33M shares.

15. YM BioSciences Inc. (YMI): Engages in the licensing and commercialization of drug products and technologies primarily for the treatment of cancer or cancer-related conditions worldwide. Net institutional sales in the current quarter at -6.0M shares, which represents about 5.5% of the company's float of 109.04M shares.

16. Zalicus Inc. (ZLCS): Engages in the discovery and development of drug candidates focusing on the treatment of pain and inflammation. Net institutional sales in the current quarter at -4.5M shares, which represents about 5.72% of the company's float of 78.71M shares.

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

Source: 16 Biotech Stocks Sold Off By Hedge Funds