** Shares of drug developer CervoMed CRVO.O rise 58.7% to $14.25 premarket

** Co says its experimental drug, neflamapimod, significantly slowed disease progression in patients with dementia with Lewy bodies, the second most common form of dementia, based on 32-week extension data from its mid-stage trial

** The extension data come after a setback last December, when the drug failed to meet primary and secondary goals in the same trial, dragging its shares by 79%

** Patients who took neflamapimod showed a 54% lower risk of their disease getting worse compared to those who did not take the drug, co says

** Neflamapimod also reduced blood markers that indicate brain cell damage

** CRVO plans to meet with FDA in Q4 2025 to discuss late-stage trials

** As of last close, stock

(Reporting by Kamal Choudhury in Bengaluru)

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