MNKD MannKind Corporation

MannKind Corp. Chief Executive Officer Hakan Edstrom has resigned, the biopharmaceutical company said Friday, less than a year after he took the helm.

Founder and executive chairman Alfred Mann has been appointed interim CEO, effective immediately, while the board searches for a successor to Mr. Edstrom.

The resignation comes amid a steep drop in the company's stock, fueled by flagging sales of MannKind's key diabetes drug Afrezza. In the wake of a disappointing third-quarter earnings report, shares have tumbled 27% this month. This year, the stock has erased more than half its value.

In efforts to stop the bleeding, the company this month said it would dually list on the Tel Aviv stock exchange, ensuring several large index funds would be required to scoop up shares.

Afrezza, an inhaled form of insulin that won regulatory approval in 2014, was eagerly awaited by many diabetics and investors after MannKind failed at two earlier attempts to pass regulatory muster. MannKind launched the drug in August. For the lackluster third-quarter Afrezza sales, Mr. Edstrom pointed to delayed insurance company reimbursements as one factor.

In its news release Friday, MannKind didn't elaborate on Mr. Edstrom's resignation. The CEO was appointed in January as Mr. Mann stepped aside to become executive chairman. Mr. Edstrom joined the company in 2001 and previously served as chief operating officer.

MannKind shares fell 5.8% in premarket trading.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

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(END) Dow Jones Newswires

November 20, 2015 10:05 ET (15:05 GMT)

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