MannKind Corp. shares fell 7.5 percent on Tuesday, despite reporting a smaller fourth-quarter loss, after the biotech said it might delay launch of its experimental insulin inhaler so it can use an updated inhaler.

After Monday’s market close, the Valencia biotech reported a net loss of $59.5 million (-53 cents per share), compared with a loss of $83.3 million (-82 cents) a year earlier. It reported no revenue in either quarter.

Analysts surveyed by Thomson Reuters on average had expected a per-share loss of 40 cents.

MannKind said its loss was smaller since research and development spending continued to decline as the company awaits U.S. Food and Drug Administration approval of its Afrezza inhaled, rapid-acting insulin.

Chief Executive Al Mann said that the company planned to submit data on a next-generation inhaler in the second quarter and planned hold off launching Afrezza until after the FDA approved it. Mann said any delay would not be significant since the main approval already was running behind initial estimates because regulators took more time to inspect the factory of a third-party insulin provider.

“The new device is smaller, thumb-sized, very discreet and is much easier to use,” Mann said in a conference call.

Chief Operating Officer Hakan Edstrom said the company had resumed talks with a potential marketing partner and also was talking with new compaines. A larger drugmaker would have more resources to help market and distribute Afrezza upon approval.

Potential partners have been waiting on the sidelines since Pfizer Inc. withdrew its first-to-market insulin inhaler a few years ago due to safety concerns. If approved, Afrezza would be the only product of its type on the market.

MannKind’s full-year loss also narrowed to $220 million (-$2.07) compared with a 2008 loss of $303 million (-$2.98), also with no revenue in either year.

Shares were down 76 cents, or 7.5 percent, to $9.38 in midday trading on the Nasdaq.