Updated from 10:17 a.m. EDT

Bristol-Myers Squibb

(BMY) - Get Report

and

AstraZeneca

(AZN) - Get Report

announced Thursday that the

U.S. Food and Drug Administration

had extended its timeline for review of their diabetes drug ONGLYZA.

The FDA extended its deadline until July 30, 2009, for review of ONGLYZA, also known as saxagliptin. The original deadline was April 30. The drug is intended to be used to treat type 2 diabetes in conjunction with diet and exercise and a combination of three other drugs, and in initial combination therapy with metformin, as an adjunct to diet and exercise. It's part of the DPP-4 inhibitor drug family, which includes

Merck's

(MRK) - Get Report

Januvia.

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Other drugs in the intensifying diabetes race include

Amylin

(AMLN)

and

Eli Lilly's

(LLY) - Get Report

Byetta and

Novo Nordisk's

(NVO) - Get Report

injectable drug liraglutide.

Bristol shares rose 1.8% to $20.17. AstraZeneca shares rose 2% to $34.05.