UPDATE 2-Inspire's cystic fibrosis trial meets goal; shares jump

(Adds analyst comments, updates stock movement)

BANGALORE, June 6 (Reuters) - Inspire Pharmaceuticals Inc (ISPH.O) said a late-stage trial of its inhaled cystic fibrosis drug denufosol met the main goal of significantly improving breathing, sending its shares soaring as much as 75 percent in morning trade.

Cystic fibrosis (CF) is a disease that mainly affects the lungs and pancreas, making it hard to breathe or secrete some enzymes. In 2006, the average lifespan of people with this disorder was 37 years, according to the Cystic Fibrosis Foundation.

Analysts feel Friday's result increased the chances of the company getting into a partnership for its CF drug, or even getting acquired by a bigger company operating in the CF space. However, potential suitors might want to wait until data from the second late-stage pivotal study is out.

"There might be one partnership by the end of the year," analyst Liana Moussatos of Pacific Growth Equities said by phone. Moussatos, who has a "buy" rating on the stock, expects the drug to be launched in the first half of 2011 and sees peak sales of about $300 million.

Analyst Ian Sandersonof Cowen & Co said he does not expect any of the big names in the industry to be interested in an acquisition given the relatively small sales potential of the drug.

"A partnership seems more plausible," Sanderson said.

Inspire tested its drug in the so-called TIGER-1 trial, which enrolled 352 patients. The study showed the drug significantly improved lung capacity compared with placebo.

Denufosol, which has been granted orphan drug status both by U.S. and European health regulators, was safe and well-tolerated in the trial, the company said.

The drug is also being studied in one more late-stage trial called TIGER-2, which began enrolling patients a few months back, Inspire said.

In a conference call with analysts on Friday, the company said it might enroll more patients and also alter the design of the TIGER-2 trial.

"This is a high risk area and people were skeptical about the results of the trial," Leerink Swann analyst Joseph Schwartz said, referring to the positive outcome of the TIGER-1 trial.

Shares were up 46 percent at $5.64 amidst heavy volume in late morning trade on Nasdaq. They had earlier touched a high of $6.75. (Reporting by Varsha Tickoo and Esha Dey in Bangalore; Editing by Anil D'Silva, Bernard Orr)