Dendreon CEO Strikes Gold on Stock Sale

In the wake of the sale, Gold controls about 900,000 shares, which includes stock owned outright and stock options. He sold about 20% of his holdings, says Greer. "It's a relatively small amount, and Mitch [Gold] still has a major stake in the company. He's never done anything like this before. It's perfectly understandable and not an unusual business practice," she adds.

I'm on record as predicting a Provenge approval on May 15 by the FDA. I gave it 80% odds, which also means I understand there's risk to this bullish thesis. It's therefore perfectly reasonable for investors to take profits or otherwise hedge their bets going into next month's big decision date.

But does that include Dendreon's CEO? Does he deserve the same consideration?

Honestly, I have mixed feelings about it. Gold deserves kudos for preparing his team for last week's FDA meeting; they did a great job -- certainly better than many expected. Provenge looks close to approval, and Dendreon employees, including Gold, deserve to be rewarded.

But the timing of Gold's sale sends a bad signal to investors. It doesn't fill me with warm, fuzzy -- or confident -- feelings. If I were in Gold's shoes (and I'm most decidedly not), I would have waited for the FDA decision before selling shares.