JERUSALEM, March 17 (Reuters) - Israel's Health Ministry hasapproved a request by Pluristem Therapeutics to seekcase-by-case permission for compasstional treatment of COVID-19patients with its stem cell therapy, the company said onTuesday.

Pluristem said in a regulatory filing the ministry may nowapprove proposed treatments for severely ill patients, though ithas yet to submit any requests and there is no guarantee thegovernment would approve each case.

The proposed treatment includes intra-muscularadministration of the company's PLX-PAD, which uses cellsderived from the placenta, for severe pneumonia resulting fromCOVID-19 and preventing the deterioration of patients towardsAcute Respiratory Distress Syndrome (ARDS) and sepsis.

Shares in Pluristem were up 14% in late afternoon trade inTel Aviv.

Pluristem said it is collaborating with the BIH Center forRegenerative Therapy and the Berlin Center for AdvancedTherapies at Charité University of Medicine Berlin to evaluatethe effects of PLX cells for the potential treatmentofrespiratory and inflammatory complications associated withCOVID-19.(Reporting by Ari Rabinovitch; Editing by Tova Cohen)