LG Chem said on Wednesday that the U.S. FDA authorized the company to conduct a phase 1 clinical trial of LG542019, a type-2 diabetes treatment candidate, which aims to reduce insulin resistance.

The study will evaluate LC542019’s safety, tolerability, pharmacokinetics, and pharmacodynamics in 98 healthy adults and type-2 diabetic patients in the U.S.

LC542019 reduces insulin resistance by activating GPR120, a protein that controls insulin sensitivity.

LG Chem said the new treatment aimed to lower blood sugar and induce weight loss and fatty liver improvement.

According to GlobalData, the global type-2 diabetes treatment market is expected to grow from 67 trillion won ($56.5 billion) in 2021 to 109 trillion won in 2029.

Son Jee-woong, president of the Life Science Company of LG Chem, said the company would develop an innovative new drug distinguished from existing diabetes medicines based on the company’s R&D expertise in diabetes.

“We will maximize the growth potential of the life sciences unit by accelerating global clinical development in strategic disease groups and by continuously discovering clinical development projects.”

The FDA nod for the phase 1 study helped LG Chem secure 10 investigational drugs, including gout treatment Tigulixostat in five years since the launching of the life science unit.