** Shares of drug developer GRI Bio GRI.O rise 52% to $2.35 premarket

** Co says its experimental lung disease drug, GRI-0621, showed no decline in lung function after six weeks of treatment in an ongoing mid-stage trial

** Co is testing the drug for the treatment of idiopathic pulmonary fibrosis, a chronic lung disease where scar tissue builds up in the lungs, making it harder to breathe over time

** The drug was tested in 24 patients and showed no worsening in forced vital capacity, a key measure of lung function

** An independent monitoring committee recommended the study continue as planned

** As of last close, stock down 89% YTD

(Reporting by Kamal Choudhury in Bengaluru)

((Kamal.Choudhury@thomsonreuters.com;))