UPDATE 1-AstraZeneca still awaiting FDA news on Onglyza

* U.S. agency was due to decide on new medicine by July 30

* AstraZeneca says confident in diabetes drug's prospects

* Onglyza partnered with Bristol-Myers Squibb

(Adds details, background)

LONDON, July 31 (Reuters) - AstraZeneca (AZN.L) is still waiting to hear if the U.S. Food and Drug Administration will approve its new diabetes drug Onglyza but is confident on the product's prospects, a spokesman said on Friday.

The U.S. agency had been due to decide on the drug, which the Anglo-Swedish company is developing with Bristol-Myers Squibb (BMY.N), by July 30.

Industry analysts are expecting a U.S. green light for Onglyza, following a positive recommendation from an FDA advisory committee in April. The drug was also recommended for approval in Europe last month.

Onglyza is AstraZeneca's first new drug since cholesterol fighter Crestor went on sale in 2003 and the drugmaker hopes it will carve out substantial sales by competing against Merck & Co's (MRK.N) blockbuster Januvia.

Januvia sold $1.4 billion worldwide in 2008.

Both Onglyza and Januvia drugs enhance the body's ability to lower elevated blood sugar levels and are part of a class of drugs known as dipeptidyl peptidase-4 (DPP-4) inhibitors.

Even though there are numerous diabetes therapies on the market, some can cause weight gain or other complications and many patients are still not reaching optimal blood sugar levels, creating an opportunity for new treatments. (Reporting by Ben Hirschler; Editing by Hans Peters)