Furiex Pharmaceuticals (NASDAQ:FURX) narrowed its third quarter net loss to $3.2 million in a busy three months during which the company secured more capital and also received milestone payments for a partnered diabetes drug that received approval for the European market.

A year ago, the Morrisville drug developer reported an $8.6 million loss. Furiex draws revenue from milestone and royalty payments from drug partners. The company’s $16.6.0 million in third quarter revenue was the same as what was reported in the the third quarter 2012, though the milestones were for different drugs.

Japanese pharmaceutical company Takeda paid Furiex a $10.0 million milestone in the quarter after receiving European marketing authorization for the partnered diabetes drug Alogliptin. In the third quarter of 2012, Furiex reported a $10.0 million from drug partner the Menarini Group after licensing Furiex licensed its premature ejaculation drug Priligy to the Italian company.

The $5.6 million in third quarter royalty payments for both 2013 and 2012 are from alogliptin sales in Japan and the United States and Priligy sales in various countries outside the United States. Priligy is not yet approved by the Food and Drug Administration for the U.S. market.

Furiex had $34.7 million in cash and cash equivalents as of Sept. 30. The company secured an additional $17.0 million in capital by restructuring its existing credit facility to provide an additional $2.0 million in funding and also through a $15.0 million loan agreement with Furiex Chairman Fred Eshelman.

Furiex’s third quarter R&D expenses totaled $19.9 million, a 34.4 percent increase that the company attributed to clinical trial and manufacturing costs for continued development of its lead clinical program, eluxadoline, a drug candidate under development to treat diarrhea-predominant irritable bowel syndrome.

June Almenoff, president and chief medical officer for Furiex, said the company is still on track to report initial phase III clinical trial results for eluxadoline in the first quarter of 2014.