Eli Lilly and Co and Boehringer Ingelheim said on Monday that a treatment for Type 2 diabetes, empagliflozin, had been shown to work in four late-stage trials.
The drug aims to reduce blood glucose levels in adults with Type 2 diabetes, the most common form of diabetes in which the body either does not produce enough insulin or the cells ignore the insulin.
About 371 million people worldwide are estimated to have diabetes.
The companies said they expect to file for regulatory review of the drug in the United States, Europe and Japan in 2013 and will present detailed data from the trials this year and next.
The companies said that among adverse reactions, genital infections occurred more often with the treatment than with the placebo.
Boehringer and Lilly are collaborating on several diabetes drugs. On Monday, they said only Lilly would continue with collaboration on another one of the treatments, known as LY2605541.