** Shares of drug developer Rein Therapeutics RNTX.O rise 2.5% to $1.24 premarket

**  Co says European regulators granted orphan drug status to its experimental therapy, LTI‑03, for idiopathic pulmonary fibrosis or IPF, a fatal lung‑scarring disease

** IPF causes irreversible lung damage that makes breathing difficult

** Co says early data from preclinical tests showed better survival and lung function

** RNTX's LTI‑03 is a synthetic peptide aimed at protecting lung cells and blocking signals that drive scarring; drug also holds U.S. orphan status, co says

** Co plans further trials in the U.S., UK, Germany, Poland and Australia

** As of last close, stock declined ~50% over the past year

(Reporting by Sahil Pandey in Bengaluru)

((Sahil.Pandey@thomsonreuters.com))