Even though the markets took a beating over the past week and biotech stocks experienced a broader industry sell-off, one stock in this space stood out as the clear winner on the market on Monday. Shares of Oramed Pharmaceuticals (NASDAQ:ORMP) were up more than 25% today, ahead of the company's report of phase 2 results for its oral insulin drug 0801 on Jan. 30. For diabetes-drug makers, oral insulin has long been a holy grail, and if these trial results are strong, the company will probably have no problem finding a partner, if not a buyer. In this video, Motley Fool health-care analyst David Williamson discusses why investors are jumping in today ahead of the news, and why this upcoming binary event could either be huge or devastating for the stock. He also tells investors in MannKind (NASDAQ:MNKD) why they may need to watch this event closely, and why success here for Oramed could give MannKind trouble down the road.

David Williamson and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.