UPDATE 1-Lexicon bowel drug meets main goal of mid-stage trial, shares rise

(Adds analyst comments, details; updates share movement)

Oct 12 (Reuters) - Lexicon Pharmaceuticals Inc saidits experimental bowel disorder drug met the main goal ofreducing bowel movements in patients with gastrointestinalcancer in a mid-stage study, sending its shares up as much as 13percent on Friday.

The drug telotristat etiprate is being studied to treatcarcinoid syndrome, a secondary condition that develops inpatients with tumors in the gastrointestinal tract.

Of the 15 patients enrolled in the study, 75 percentreported improvement in carcinoid symptoms at week 12 of thetrial. The study also met the secondary goals of reducingabdominal pain and improving stool consistency.

The drug was tested on patients who were unable to toleratesomatostatin analog therapy -- the current treatment forcarcinoid syndrome.

However, Morningstar analyst Karen Andersen said the drugcould now be potentially used as a first-line therapy.

"Based on the data today I thought it looked like anextremely safe option ... and the efficacy was actually quiteimpressive. It's looking like a really promising orphan drug,"Morningstar's Andersen said.

The U.S. Food and Drug Administration had granted the drugan orphan drug designation in March.

Wedbush Securities Inc analyst Liana Moussatos said thecompany could file with the FDA for marketing approval in themiddle of 2014.

Telotristat etiprate is also being studied in a mid-stagetrial to treat ulcerative colitis, a type of inflammatory boweldisease.

Lexicon is expected to start late-stage trials of itsdiabetes drug -- its most advanced drug candidate -- in thefirst half of 2013.

The company is also testing drugs for irritable bowelsyndrome, rheumatoid arthritis and glaucoma.

The Texas-based biopharmaceutical company's shares were up 8percent at $2.59 on Friday on the Nasdaq.

(Reporting By Pallavi Ail in Bangalore; Editing by RoshniMenon)

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