Cadila Healthcare Ltd today said it has received approval from Drug Controller General of India (DCGI) to conduct Phase I clinical trials on its New Molecular Entity (NME) - ZYH2, used for treating diabetes.

In pre-clinical studies on 'ZY H2' displayed that it has the potential to improve insulin resistance and lower blood glucose in diabetic conditions without causing hypoglycemia, the company informed the Bombay Stock Exchange.

It also works favourably to lower the elevated lipid levels and the pre-clinical studies on ZYH2 indicate that this NME may be more effective for diabetics, it added.