UPDATE 1-Basilea shares up on hopes of fast drug approval

(Adds company comment, background)

ZURICH, Feb 13 (Reuters) - Shares in Swiss biotech company Basilea (BSLN.S) rose after the U.S. Food and Drug Administration watchdog cancelled a meeting on its ceftobiprole antibiotic, raising hopes of a quick approval.

The FDA had given no reason for cancelling the advisory panel meeting on ceftobiprole, a broad spectrum antibiotic to treat deadly superbug MRSA, Basilea spokesman Jean-Christophe Britt said on Wednesday.

"We can not speculate what the cancellation of the meeting means," he said.

Basilea shares, which have lost 17 percent this year, were up 3.7 percent at 189.20 Swiss francs by 0934 GMT, having touched 205.20 francs earlier in an overall weaker Swiss market .SMIM.SSMI.

"There is a perception that without a panel meeting, the approval will sail through," one analyst said.

"There was a bit of concern after the announcement that there was going to be an FDA advisory panel (meeting)," the analyst said.

U.S. authorities had granted the drug a standard review in July, disappointing hopes of an accelerated review, and analysts expected approval by March or April 2008.

The emergence of so-called hospital superbugs such as MRSA, which are resistant to existing medicines, has increased the need for alternative treatments and re-focused attention on antibiotics. (Reporting by Sven Egenter and Sam Cage, additional reporting by Paul Arnold, editing by Will Waterman)