* Reports positive mid-stage trial results
* Says has cash to continue operations into 2011
* Analysts welcome positive news after recent disappointment
* Shares rise 4.6 percent
(Adds company, analyst comment, shares)
By Sam Cage
ZURICH, June 30 (Reuters) - Santhera aims to partner a new drug for treating dyskinesia in Parkinson's disease this autumn after positive mid-stage trial results, its chief executive told Reuters on Tuesday.
There has been interest in partnering JP-1730/fipamezole and a late-stage trial could start in late 2010 or early 2011, Klaus Schollmeier said in an interview.
"We see a high interest in this product. We think that with this data interest will increase. In autumn we think we will reach an agreement," Schollmeier said.
Santhera said the drug had a positive result in patients with Parkinson's in a mid-stage trial, reducing the sudden uncontrollable, often chaotic movements of limbs, face, tongue and body that are induced by extended use of standard therapy levodopa.
The group's shares rose 4.6 percent to 27.40 Swiss francs by 0933 GMT, ahead of a 0.6 percent gain in European health stocks .
"Considering the large Parkinson's disease patient population we could expect the signing of any partnering deal to be associated with a potentially lucrative milestone payment schedule," WestLB analyst Simon Mather said in a note.
"Taking into account the lack of any appropriate treatment to combat DPD (dyskinesia in Parkinson's disease) we forecast an addressable market potential of 500 million euros ($700 million) for JP-1730."
The Basel-based company's lead drug Catena has missed its main aim in a late stage clinical trial in Friedreich's Ataxia and the biotech company is considering all options to preserve cash.
Analysts welcomed the positive news on the JP-1730 study details and potential partnership, but also sounded a cautious note on the read out.
"Given that the original trial read out actually does not meet statistical significance, but only indicates a trend and that the statistically significant data is based on sub-population analysis, we do not think this data de-risks the project," said Vontobel analyst Silvia Schanz.
Catena is the group's first drug to reach the market, having gained approval in Canada, and Schollmeier said Santhera had enough cash to continue operations into 2011. (Additional reporting by Paul Arnold; Editing by Dan Lalor and Mariam Karouny) ($1 = 0.7143 euro = 1.088 Swiss francs)