Valencia pharmaceutical company MannKind Corp. shaved its third-quarter loss to $38.5 million (31 cents per share) from $45.3 million (40 cents a year ago) on a 26 percent decrease in expenses for research and development.
The company made the announcement at the close of trading Thursday.
The loss beat analysts’ expectations of 32 cents.
Year-over-year operating expenses were $9.7 lower in the latest quarter ($32.8 million versus $42.5 million) largely due to lower purchases of raw materials as the result of the termination of an agreement under which the company was required to purchase more insulin than it needed.
Operating supply scheduled were interrupted when the federal Food and Drug Administration declined its application for approval of a new drug in February, ordering the company instead to conduct additional clinical trials which are now under way.
The drug candidate, Afrezza, is proposed as a treatment for hyperglycemia in adult type-1 and type-2 diabetes patients. It would be the company’s first marketable product.
Cash, cash equivalents and marketable securities were $23.3 million as of Sept. 30, compared to $70.4 million as of Dec. 13, 2010. As of Sept. 30, the company had $45 million of available borrowings (versus $98 million as of Dec. 31) under the loan agreement with an entity controlled by MannKind’s principal stockholder, billionaire investor Alfred Mann.