UPDATE 1-Tigenix says may raise capital to fund growth

(Recasts with company comments)

BRUSSELS, Nov 5 (Reuters) - Belgian biomedical firm Tigenix (G9U.BR) may increase its capital to fund its expansion in regenerative medicine if market conditions are favourable for such a move.

The group, which develops cell-based medicinal products to treat damaged and diseased joints, recently won EU approval for its first product, ChrondroCelect, which helps to regrow cartilage.

ChrondroCelect is expected to start generating revenue from 2010.

"To finance its external growth, it might be necessary to raise additional financial means. Therefore, Tigenix does not rule out that the company will increase its capital if the market conditions are favourable," Tigenix said in a statement on Thursday.

It did not provide further details. Belgian newspaper De Tijd had earlier on Thursday cited observers as saying a capital increase of 15 million-25 million euros ($22.1 million-36.9 million) was realistic for the company.

The paper also quoted Tigenix's chief executive, Gil Beyen, as saying that the company could manage with the 22 million euros it has in cash.

($1=.6782 euros) (Reporting by Antonia van de Velde and Foo Yun Chee; Editing by Greg Mahlich)