UPDATE 1-RESEARCH ALERT-Needham upgrades Phase Forward to buy

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June 23 (Reuters) - Needham upgraded Phase Forward Inc (PFWD.O: Quote, Profile, Research), a provider of electronic data capture software used in collecting drug trial information, to "buy" from "hold" and said the shares have retracted some and could be at a reasonable price ahead of potential positive news announcements.

The brokerage said the company could have some positive news announcements about new products at this week's Drug Information Association (DIA) meetings.

Earlier Monday, the company said it has formed an alliance with clinical trials imaging network company AG Mednet to integrate Phase Forward's InForm integrated trial management system and AG Mednet's imaging transport network.

Phase Forward said the joint solution will help streamline the process of transporting images between clinical sites and central reviewers, and will enable trial sponsors to access the status of patient images in real-time.

Needham analyst David Hynes said by email that "clearly we did not know exactly what type of announcements PFWD would make during DIA, but (this news) is consistent with what usually happens at these types of trade shows."

Long-term, the brokerage expects Phase Forward to report second-quarter results in-line with its estimates.

Shares of Phase Forward, which a touched a high of $19.24 earlier in the session, were trading up about 6 percent to $18.19 in afternoon trade on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Bernard Orr)