UPDATE 2-Generex: stock drop related to inhaled insulin concerns

(Adds details, updates share movement)

March 11 (Reuters) - Generex Biotechnology Corp (GNBT.O) attributed the sharp decline of its stock price on Monday to a decision by several leading drugmakers to stop developing inhaled insulin products.

Shares of Generex, which is developing an insulin product that is in late-stage trials, fell as much as 20 percent on Monday.

The stock rebounded on Tuesday, trading up more than 6 percent to $1 on Nasdaq. The company said unlike safety concerns related to inhaled insulin products, its Generex Oral-lyn product delivers insulin through the mouth and absorbed into the body through the lining of the inner mouth, with no deposit in the lungs.

Oral-lyn has been approved in Ecuador and India.

Eli Lilly & Co (LLY.N), which was developing an inhaled insulin treatment with Alkermes Inc (ALKS.O), was the latest drugmaker to terminate development of inhaled insulin and follows similar decisions by Pfizer Inc (PFE.N) and Novo Nordisk (NOVOb.CO).

In related news, Mannkind (MNKD.O) on Monday said it was committed to developing its inhaled insulin product. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Bernard Orr)