"If a majority of shares are held by a few key insiders (I don't know the actual numbers off hand), couldn't they coordinate to sell a majority (or close to majority) chunk of the company to a hedge fund or pharma?"

jonzobot - Yes they can but just not the way you propose. They can't just sell off a portion of the company because they own the majority. It would take a vote of all shareholders. What they can do as a bloc if they are a majority though is next AGM, vote as a bloc to remove all of the BoD and replace it with members that will support a sale and force the CEO toward it also or remove him. They just have to nominate BoD candidates that their Bloc supports and if they have a majority of shares, those nominees  would be elected. It can be done but has to be approved by a shareholders majority which they would hold if they held a majority of shares.

KOO - you queried golfyeti on his reason for not selling but in his post immediately previous to that post of yours, he had expressed his reason.

"There is no point selling at a few pennies on the dollar when the only impedement to success is the unbelievable and hopefully untenable retention of a complete dud or crook of a CEO. "