CORRECTED - CORRECTED-UPDATE 1-NeurogesX inks deal with Astellas for pain pa

(Corrects headline to show that it is a pain patch and not a back pain patch)

* Astellas' European unit to market Qutenza in EU

* NeurogesX to get about $42 mln upfront from Astellas

* Co to also get $7 mln for NGX-1998 license option

June 22 (Reuters) - NeurogesX Inc (NGSX.O) said it entered into a marketing deal with the European unit of Japan's Astellas Pharma Inc (4503.T), allowing Astellas to sell NeurogesX's dermal patch, Qutenza, in the European Economic Area, the Middle East and Africa.

According to the agreement, NeurogesX will receive an upfront of about $42 million from Astellas for the Qutenza commercialization rights.

Qutenza, which received regulatory approval in the European Union last month for the treatment of peripheral neuropathic pain in non-diabetic adults, is still awaiting approval in the United States.

NeurogesX will also receive about $7 million for a license option of its most advanced pipeline candidate after Qutenza, NGX-1998.

NGX-1998 is a topically applied, liquid formulation that uses the same active ingredient as Qutenza and is designed to treat pain associated with neuropathic pain conditions. It has completed three early stage clinical trials.

NeurogesX would be eligible for additional sales-based milestone payments and additional option payments of about $97 million related to the liquid formulation, and royalties based on a double-digit percentage of net sales of Qutenza.

Shares of NeurogesX closed at $6.63 Friday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Aradhana Aravindan)