Mannkind Inc. late Thursday reported a smaller-than-expected fourth quarter loss, but said it would lay off 41 percent of its employees as it focuses on obtaining regulatory approval for its inhaled diabetes drug Afrezza.

The U.S. Food and Drug Administration last month told the Valencia biotech that it wouldn’t approve Afrezza until the company conducted additional human studies. Those studies could delay the drug hitting the market by two years.

Roughly 180 people may be affected by the layoffs. The company most recently said it had more than 400 employees in Valencia and other sites.

“We are restructuring our organization to be focused on securing the approval of Afrezza,” said founder and Chief Executive Alfred Mann in a statement.

MannKind had about three fiscal quarters worth of cash at the end of last year, and executives have been considering a variety of actions to stretch funds and raise money to get over the regulatory hump. The studies will largely compare an inhaler device the company first submitted for approval with a newer, smaller version submitted last summer.

After markets closed on Thursday, Mannkind reported a net loss of $38.3 million (-33 cent per share) and no revenue. Analysts had expected a 40-cent loss. A year earlier, the company reported a $59.5 million (53 cents) loss.

Shares earlier closed down 8 cents, or 1.6 percent, to $5.06 on the Nasdaq.