UPDATE 2-NeurogesX shares soar after EU advisers back pain patch

* Shares up on positive recommendation for key drug

* Q4 loss narrower-than-expected

* Shares up as much as 92 percent (Adds analysts' comments; updates share movement)

By Vidya L Nathan

BANGALORE, March 20 (Reuters) - Shares of NeurogesX Inc (NGSX.O) almost doubled their market value on Friday, a day after advisers to the European Commission recommended the approval of the biopharmaceutical company's experimental dermal patch, Qutenza, to treat peripheral neuropathic pain in non-diabetic adults.

Recommendations for marketing approval by the Committee for Medicinal Products for Human Use (CHMP) are usually endorsed by the European Commission within a couple of months.

"The recommendations by the CHMP are very rarely not confirmed," said Lazard Capital Markets analyst Gene Mack, who has a "buy" rating on the stock.

NeurogesX has also filed for marketing approval of Qutenza in the Unites States to treat post herpetic neuralgia, a painful and common complication of shingles.

The U.S. Food and Drug Administration has set Aug. 16 as the regulatory action date on the dermal patch.

While Lazard's Mack said the European Union's decision should reflect positively on the pending decision of the U.S. Food and Drug administration, Zacks Investment's Jason Napodano disagrees.

"They are very different organizations, they don't follow each other's lead and they don't often pay attention to what the other one is doing," said Napodano, who has a "hold" rating on the stock.

However, both analysts agreed that a European partnership, which the company expects in the first half of the year, was important. They said the company has only enough cash to fund operations through 2009.

"When they sign their EU partnership, it should come with at least enough cash upfront so that the management can put in place the necessary beginnings of the U.S. launch," Napodano said.

Napodano expects a European partnership to facilitate a partnership in the United States as well.

QUARTERLY RESULTS

On Friday, NeurogesX posted a quarterly loss that was narrower than market estimates as it benefited from a drop in operating expenses.