UPDATE 1-Mannkind cuts 41 percent jobs; terminates supply deal

* Says to focus resources on Afrezza

* Says seeking guidance from FDA on Afrezza approval

* Says terminates supply agreement with Merck unit

* Q4 shr loss $0.33 vs est of $-0.40

* Shares down 4 pct

Feb 10 (Reuters) - MannKind Corp said it cut about 41 percent of its workforce to focus resources on getting its inhaled insulin product, Afrezza, approved.

The company, which also posted a narrower-than-expected quaterly loss, said it would request guidance from U.S. health regulators on getting a marketing nod for the product.

Mannkind's job cut comes within a month of the Food and Drug Administration denying Afrezza approval, asking for two clinical studies that show the second-generation whistle-sized inhaler is comparable to the first generation.

The agency's decision also led the Valencia, California-based company to terminate a supply agreement for recombinant human insulin it had with a unit of Merck .

Mannkind said it estimates paying a termination fee of about $22.7 million if Merck's unit Organon is unable to sell certain quantities of insulin.

Shares of the company, which have lost about 44 percent of their value since FDA denied approval for Afrezza, were down 4 percent in extended trading. They closed at $5.06 on Thursday on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Don Sebastian)