UPDATE 1-CytRx says prelim results of cancer drug shows promise

* Drug was well-tolerated

* Shares rise over 2 percent

Dec 7 (Reuters) - CytRx Corp (CYTR.O) said preliminary results from a mid-stage trial of its drug tamibarotene showed promise in the treatment of acute promyelocytic leukemia (APL) in patients failing other treatments.

APL is a type of cancer in which there are too many immature blood cells in the blood and bone marrow.

The drug is designed to avoid toxic side effects related to the current first-line treatment for the cancer such as differentiation syndrome -- a potentially fatal complication -- and heart damage.

The results from the trial indicate the drug, which has orphan drug status, was well tolerated and associated with a relatively low incidence of differentiation syndrome and has shown no effect on heart function, the company said.

Shares of CytRx were trading over 2 percent at $1.14 on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Aradhana Aravindan)