Critical Therapeutics says FDA OK's partner's product

BANGALORE (Reuters) - Critical Therapeutics Inc. (CRTX.O) said U.S. regulators approved a respiratory care product of its partner, Dey L.P, that treats chronic obstructive pulmonary disease.

Dey is an affiliate of Germany's Merck KGaA (MRCG.DE).

Shares of Critical Therapeutics were up more than 61 percent to $2.66, near its 52-week high of $2.74, in afternoon trade on the Nasdaq.

Under a co-promotion agreement, Critical Therapeutics will help promote Dey's Perforomist inhalation product for the treatment of bronchoconstriction for emphysema and chronic bronchitis in the United States, the company said in a statement.

Pacific Growth Equities analyst Greg Wade feels the stock is up on the combined effect of Dey's product approval and expectation that Critical's zileuton CR, a reformulation of its primary drug, will get approval from the U.S. Food and Drug Administration at the end of this month.

Wade said Critical needs to expand its sales force to start selling Perforomist and for that its needs approval of zileuton CR, the reformulation of ZYFLO, an asthma treatment.

Critical is looking to expand its sales force to at least 40 to promote Perforomist.

Dey and Critical also have a co-promotion agreement for

ZYFLO.

Cowen & Co. analyst Ian Sanderson said people are expecting zileuton CR to get approval, which means Critical has two new products coming up in its third quarter.

(Reporting by Jennifer Robin Raj, Esha Dey in Bangalore)