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Although receiving a significant setback earlier this year when the FDA asked for additional Afrezza trials, it might be time to keep an eye on shares of Mannkind (MNKD) again.

The company has been attracting increasing attention of late, namely because the short percentage on its stock has risen to 30%, while insider purchases have also picked up over the past few months. In total, nearly three and a half million shares have been picked up by those insiders, giving investors the impression that company officials are confident that the beaten-down share price could be setting up for a reversal.

Insider purchases are never a sure thing when trying to predict a turnaround, but when they come in the numbers that have been seen with Mannkind, investors will sleep a little easier at night knowing that the insiders are putting their money where their mouths are and playing the game alongside the average investor.

With the insiders and others who have accumulated during this prolonged drop providing a solid base, MNKD could now be positioned as a candidate for a short squeeze.

Should any news materialize that would spur some quick covering by the shorts, MNKD could appreciate in value fairly quickly.

It's still too early to jump into any renewed Afrezza hype, however, with results of the two trials asked for by the FDA not expected until early in 2013, but it's been no secret that Mannkind has been trying to land a major partnership to share the remainder of the financial burdens in bringing Afrezza to market.

According to the last quarterly report, extensive discussions have taken place with potential partners, although nothing firm has yet to come of those talks. Should something materialize on that front, it could provide the spark needed to see some of the shorts start to cover.

Even with the setback, Mannkind still looks to be ahead of the game in bringing Afrezza to market before Generex (OTCQB:GNBT) brings its insulin spray, Oral-lyn, to market. The FDA has also requested another trial from Generex.

It's been months of relative quiet from Mannkind, but things might be starting to heat up again.

Keep an eye out.

Source: Mannkind: One To Watch With High Short Interest And Insider Buying