Novo Nordisk's (NVO) proposed once daily diabetes drug is substantially better at controlling blood glucose in patients with Type 2 diabetes when compared with Byetta, according to a study published Monday in the British medical journal The Lancet.

The study, presented at the American Diabetes Association conference, followed about 450 patients taking Novo's liraglutide, yet to be approved by federal regulators, and Byetta, a twice-daily injection already on the market. Byetta is co-marketed by Eli Lilly & Co. (LLY) and Amylin Pharmaceuticals Inc. (AMLN). All patients were also taking traditional diabetes drugs, such as metformin, during the study.

The study, funded by Novo, showed liraglutide helped Type 2 diabetes patients lower blood glucose levels by 1.12%, compared with 0.79% for those on Byetta. Managing glucose levels is important for Type 2 diabetes patients, who make up the majority of diabetics, because when glucose levels rise too high they can damage a person's eyes, kidneys, nerves and heart.

The research also showed the drugs helped patients lose weight at similar rates.

The study is the second piece of good news for the Novo drug to come out of the ADA conference. Research released Sunday showed liraglutide was better at reducing weight and controlling blood glucose levels when compared to glimepiride, marketed by Sanofi-Aventis SA (SNY).

Liraglutide has yet to be approved in either the U.S. or Europe, though a European medicines commission has recommended the treatment be approved. The U.S. Food and Drug Administration has yet to make a decision on the drug.

Byetta, given twice daily, has "consistently shown powerful, sustained" average glucose level reductions since it was approved in June 2005, Eli Lilly and Amylin said in a statement. The companies said the average glucose levels reported in The Lancet study are "inconsistent" with other studies involving Byetta. The company also noted some studies have shown Byetta has comparable blood glucose control to insulin, the highest standard of efficacy for people with Type 2 diabetes.

Both drugs belong to a new wave of diabetes drugs called GLP-1 medicines, or "GLiP" in industry jargon. Byetta is the first such drug approved by the FDA. Byetta's makers are seeking FDA approval for a once a week version of the drug, called exenatide once weekly.

The once daily or once-a-week versions of these drugs are considered more potent and more convenient because they are better tolerated by the body, doctors say.

-By Jared A. Favole, Dow Jones Newswires; 202.862.9207; jared.favole@dowjones.com