UPDATE 1-Rigel to move arthritis drug forward; posts weak Q3

* Q3 shr loss $0.70 vs est $-0.58/shr * Says to conduct late-stage study for arthritis drug R788 * Sees deal on R788 before late-stage study begins

* Sees meeting EMEA representatives by year end

Nov 3 (Reuters) - Rigel Pharmaceuticals Inc (RIGL.O) said it would move ahead with a late-stage study of its experimental arthritis pill R788 despite a failed mid-stage trial, and posted a wider-than-expected quarterly loss.

The company, which met with U.S. health regulators last week, said it would begin the late-stage study on the drug to treat rheumatoid arthritis in the first half of 2010.

The clinical-stage drug development company said it still expects to sign a partnership on R788 before the late-stage study begins.

The company, which had cash equivalents and available for sale securities of $156.1 million as of Sept. 30, needs a partner to fund the large late-stage trial of the arthritis drug.

In July, the company had said R788 failed to meet the main goal of a mid-stage study as patients treated with the dummy drug showed a higher-than-expected rate of response. [ID:nBNG388884]

Rigel said it would also meet with European health regulators by the end of the year to discuss approval requirements.

The company also posted a third-quarter loss of 70 cents a share, wider than analysts' expectations of a loss of 58 cents, before special items, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $6.55 Monday on Nasdaq.

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For the company press release, double-click [ID:nPnSF04001] (Reporting by Vidya L Nathan in Bangalore; Editing by Aradhana Aravindan)