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Do you like to follow smart money buying and selling trends? One group of smart money investors includes short sellers, who take positions that are profitable if a stock price falls.

We ran a screen on the biotech industry to find which stocks investors are selling short. We began by screening the biotech industry for stocks with high growth prospects, with 5-year projected EPS growth above 15%.

We then screened these names for those with bearish sentiment from short sellers, with significant increases in shares shorted month-over-month as a percent of share float. This indicates that short sellers are more bearish on these names than they were a month ago.

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

Do you think these stocks will underperform like short sellers expect? Use this list as a starting point for your own analysis.

List sorted by increase in shares shorted month-over-month as a percent of share float.

1. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA): Focuses on discovering, developing, and commercializing oral drugs in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. Market cap at $422.35M, most recent closing price at $2.32. 5-year projected EPS growth at 25.00%. Shares shorted have increased from 37.44M to 42.37M over the last month, an increase which represents about 2.75% of the company's float of 179.25M shares. Days to cover ratio at 4.25 days.

2. XOMA Corporation (NASDAQ:XOMA): Engages in the discovery, development, and manufacture of therapeutic antibodies to treat inflammatory, autoimmune, infectious, and oncological diseases. Market cap at $200.13M, most recent closing price at $2.92. 5-year projected EPS growth at 19.00%. Shares shorted have increased from 1.78M to 3.13M over the last month, an increase which represents about 2.28% of the company's float of 59.33M shares. Days to cover ratio at 3.33 days.

3. VIVUS Inc. (NASDAQ:VVUS): Engages in the development and commercialization of therapeutic products for underserved markets in the United States. Market cap at $1.96B, most recent closing price at $23.95. 5-year projected EPS growth at 29.70%. Shares shorted have increased from 13.60M to 14.58M over the last month, an increase which represents about 1.56% of the company's float of 62.68M shares. Days to cover ratio at 1.79 days.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 3 High-Growth Biotech Stocks With Bearish Short Trends