UPDATE 1-Affymax posts narrower-than-expected Q3 loss

* Q3 loss/shr $0.97 vs est $1.23

* Q3 rev $29.2 mln vs est $26.1 mln

Nov 4 (Reuters) - Biopharmaceutical company Affymax Inc (AFFY.O) posted a narrower-than-expected quarterly loss, helped by a 35 percent jump in collaboration revenue.

The company reported a net loss of $18.4 million, or 97 cents a share, compared with a loss of $26.2 million, or $1.72 per share, in the year-ago quarter. Total revenue was up 35 percent at $29.2 million.

Analysts on average were expecting the company to post a loss of $1.23 a share on revenue of $26.1 million, according to Thomson Reuters I/B/E/S.

The company said in a regulatory filing that the increase in collaboration revenue was "primarily due to the growth in third-party development expenses reimbursed by Takeda related to our Phase 3 clinical trials which completed enrollment in the last quarter of 2008."

Affymax, together with Takeda Pharmaceutical Co Ltd (4502.T) is developing a drug -- Hematide -- to help increase hemoglobin levels in anemic kidney dialysis patients.

Shares of the company closed at $5.26 Tuesday on the Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Aradhana Aravindan) ((krishnakali.sengupta@thomsonreuters.com; within U.S +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging: krishnakali.sengupta.reuters.com@reuters.net))