UPDATE 1-Shire awaits more data on Renovo's Juvista

(Adds details, shares, analyst reaction)

LONDON, Aug 28 (Reuters) - Renovo Group Plc (RNVO.L), the British scar reduction specialist, said on Thursday that Shire Ltd (SHP.L) would not push ahead immediately with final-stage trials on its Juvista product, despite promising Phase II test results.

Shares in Renovo dropped 15.2 percent to 29.25 pence by 1200 GMT following the news.

Shire will instead wait for a key European study before pushing ahead with plans for a U.S. Phase III clinical trial of Juvista, Renovo's most important development product.

If the first European large-scale Phase III trial is positive, then development partner Shire will conduct talks for similar Phase III tests in the United States, Renovo said.

Samir Devani, an analyst at Nomura Code Securities, cut his recommendation on the stock to 'buy' from 'strong buy' on the news.

In a note to clients, he said it was disappointing that Shire was waiting for the results of the European trial, expected in mid-2010.

"We view this as a disappointing outcome for Renovo as this sequential approach significantly pushes back potential product launch (we now forecast launch in 2014 having previously assumed 2012). In addition, we now believe the company will require further funding, albeit not for a number of years," he said.

(Reporting by Ben Deighton; Editing by Erica Billingham an Ben Hirschler)