Britain's healthcare cost-effectiveness body is recommending Eli Lilly & Co (LLY) and Amylin Pharmaceuticals' (AMLN) type 2 diabetes drug Bydureon for use in the U.K.'s publicly-funded National Health Service, it said Tuesday.

In draft guidance the National Institute for Health and Clinical Excellence, or NICE, said the injectable medicine, known generically as exenatide, could be given in combination with certain other drugs in obese patients with a body mass index above 35, or those for whom insulin injections wouldn't be suitable.

In a statement, NICE said exenatide improves the ability of patients with type 2 diabetes to control their blood sugar levels in a number of ways. These include enhanced glucose-dependent insulin secretion and reduced glucose-dependent glucagon secretion in response to eating, which helps stop the liver from overproducing sugar when it is not needed.

Carole Longson, NICE's health technology evaluation centre director said: "Type 2 diabetes is becoming increasingly more common in adults, so we are pleased to recommend exenatide as a treatment option for some people with the condition."

NICE said final guidance is likely to be published in February.

-By Sten Stovall, Dow Jones Newswires; +44 207 842 9292; sten.stovall@dowjones.com

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