There are many reasons to sell a stock but there is only one reason why insiders buy stocks, especially stocks like MannKind Corporation (NASDAQ: MNKD) in the volatile biopharmaceutical sector. The reason is that they think the stock is going to go up. To first put things in perspective, MannKind Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for patients with diseases such as diabetes and cancer. MannKind Corporation’s lead investigational product candidate is AFREZZA® - a novel, ultra rapid-acting mealtime insulin therapy that is in late stage clinical investigation for the treatment of adults who have type 1 or type 2 diabetes for the control of hyperglycemia. Obviously there is still risk that there will be poor results from the Afrezza Phase 3 trials or another Complete Response Letter after a NDA filing in 2013 but that has not stopped insiders from buying.

However and in June, Alfred E. Mann, the CEO and chairman of the board of MannKind Corporation purchased 31,250,000 shares or roughly $77.18 million worth of MNKD stock for $2.47 per share. He's already made money on the purchase because on Tuesday, MannKind Corporation closed up 2.56% to $2.80 and had a market cap of $469.90 million. In addition, MannKind Corporation’s Corporate VP and CFO also purchased 1,054 shares for $1.95 to add to his existing holdings of 78,150 shares and back in May, MannKind Corporation’s Corporate Vice President of Operations and Chief Technology Officer purchased 21,667 shares at $1.68 per share worth $36,400 while five directors each acquired 17,011 shares (all are sitting on a capital gain for these acquisitions).

Hence and for the last quarter compared to the quarter before that, 5,895,060 net shares were purchased by insiders for a 16.27% in the number of institutional shares owned. In fact, there have been no MannKind Corporation insider sales since March.

That brings me back to CEO Alfred or Al Mann, who became a billionaire by founding a series of successful startups that eventually got acquired by larger companies. One of his companies was Minimed, which coincidentally made insulin pumps, that got acquired by Medtronic, Inc. (NYSE: MDT) in a $3 billion-plus acquisition. Since then, Al Mann has sunk a big chunk of his fortune into MannKind Corporation and he has a reputation for being a hardnosed negotiator and business man. In other words, investors should not worry about Al’s ability to get funding and build partnerships that benefit MannKind Corporation. Moreover and since he along with other insiders have sunk even more their fortunes into MannKind Corporation, it might be time for other investors to follow this trail of insiders before its too late.

http://www.smallcapnetwork.com/Follow-the-Trail-of-Insiders-Into-Small-Cap-Biotech-Stock-MannKind-Corporation-MNKD/s/via/3414/article/view/p/mid/1/id/822/