UPDATE 2-Spherix says diabetes drug shows promise; shares jump

* Says drug significantly reduces glucose level in blood

* Says on target to submit NDA in 2010

* Shares more than double to 3-year high

* Looks for partners in US, Europe, Asia - says CEO (Adds CEO comments, updates share movement)

By Anand Basu

BANGALORE, Nov 16 (Reuters) - Shares of Spherix Inc (SPEX.O) more than doubled in value Monday after the company said initial data from a late-stage trial of its experimental type 2 oral diabetes drug showed a significant reduction in blood glucose level, the main goal of the trial.

The company said it remains on target to complete the late-stage trial of the drug, Naturlose, and submit a new drug application (NDA) in 2010.

Spherix said the results of the secondary end-points are "very striking and are in agreement with that of the HbA1c (Hemoglobin A1c) results."

Type 2 diabetes occurs when the body loses its ability to use insulin to convert food to fuel. Hemoglobin A1c, or HbA1c, is a measure of the level of glucose in the blood over a period of time.

Naturlose prevents the stimulation of insulin secretion, avoiding beta cell exhaustion and naturally lowers blood glucose levels.

The company, which is looking for partners in the United States, Europe and Asia, has received some interest from both national and international potential partners, Chief Executive Claire Kruger said.

"We are always open to investors or partners as we continue the clinical trial development of Naturlose," Kruger told Reuters.

Shares of the company, which touched a 3-year high of $4.15 in early trading, were up $1.12 at $3.12 in late morning trade Monday, making them one of the biggest percentage gainers on Nasdaq.

For the alerts, double-click [ID:nWNAB6293] [ID:nWNAB6530] (Reporting by Anand Basu in Bangalore; Editing by Gopakumar Warrier)