Dendreon CEO Strikes Gold on Stock Sale

Dendreon(DNDN) CEO Mitch Gold didn't waste much time cashing in on the big jump in his company's stock price.

Gold sold more than $2.2 million in company stock on Monday, according to a Form 4 filed Wednesday with the Securities and Exchange Commission.

His stock sale came two trading days after an FDA advisory panel voted to recommend approval for the company's Provenge prostate cancer vaccine. The positive panel vote sent Dendreon shares soaring about 200%.

The FDA will issue its final approval decision on Provenge on or before May 15.

In recent trading, Dendreon shares were up $2.66, or 17%, to $17.71.

Interpreting insider selling can be a tricky thing. Is Gold simply rewarding himself -- justifiably -- for overcoming a slew of doubters and getting Provenge to within inches of the finish line?

Or is the CEO hedging his bets, taking the easy money now because he's worried the FDA might reject Provenge next month?

Dendreon spokeswoman Monique Greer says it's the former. Dendreon insiders haven't had the opportunity to sell significant stock in a long time, so a short trading window was opened after last week's FDA advisory panel as a reward for management and employees. That trading window is now closed, she adds.

Gold exercised options and sold about 202,000 total shares on Monday. On a net basis, he reduced his holdings of Dendreon's stock by 25% to 189,000 shares, according to the filing. That figure doesn't include Gold's stock-option holdings.