** Lipella Pharmaceuticals' shares rise 7% to $2.59 premarket

** LIPO says completed dosing of first group of patients in mid-stage study of LP-310, its key experimental drug to treat oral lichen planus

** OLP is a chronic inflammatory disease that affects mucous membranes inside the mouth

** Disease affects about 6-7 million Americans, and has no approved drug besides those used to alleviate symptoms, the co's website says

** As of last close, stock had fallen 70% YTD

(Reporting by Leroy Leo in Bengaluru)

((Leroy.Dsouza@thomsonreuters.com;))