The evolution of mankind dates back to when we were all hunter-gatherers. That is the assertion of Dr Anker Lundemose, president of Cowley-based Prosidion, which focuses on treatments for Type 2 diabetes and obesity.

He explained: "Thousands of years ago, man would hunt, kill an animal and everyone would gorge themselves because they never knew when they would eat again.

"Those who absorbed the energy in the food and put on weight could survive until the next feast. Those that couldn't died - it truly was the survival of the fittest.

"We call it the thrifty genotype and mankind is now a direct descendant of that genotype, a survivor. All the time he eats sensibly and the right foods, there's no problem.

"But with an abundance of food in the developed world, people are now eating far too much of the wrong kind. That causes obesity and that's directly linked to Type 2 diabetes. It's the single biggest risk factor."

Currently, there are 250 million diabetics worldwide, 90 per cent of whom have Type 2 diabeties. The United States alone has 20 million diabetics.

By 2030, the total number of diabetics worldwide is forecast to exceed 365 million. Diabetes and obesity are threatening to become global epidemics.

India and Saudi Arabia are now badly affected areas. In parts of India, 15 per cent of the population is diabetic and the figure is rising.

That increase is a downside of the country's booming economy. The diet of the poor is little changed, but increasing wealth has expanded the middle classes and it is there that diabetes is on the increase.

Prosidion's strategy is to target major unmet medical needs in Type 2 diabetes and obesity.

For diabetes, they have a number of drugs in the pipeline that are designed to work better, have fewer side effects and which can cut the spread of the disease.

Obesity drugs follow the same precepts, but are targeted at stimulating weight loss.

The progressive nature of Type 2 is a key issue. Insulin is produced in beta cells and even prior to diabetes being detected in a patient, a dramatic reduction in beta cell function will occur.

Treatment will initially be diet and exercise to both reduce and control the blood glucose levels, but disease progression means that the majority of patients will need additional treatment with tablets.

Frequently, other drugs such as statins for cholesterol and tablets to treat high blood pressure will also be prescribed. Finally, a diabetic may progress to insulin injections.

Type 2 diabetes can affect the body in a number of ways, the most significant being the cardiovascular system, with damage to blood vessels and increased risk of strokes and heart attacks.

Slowing, or even stopping, the progression would be a major step forward.

Prosidion's approach to diabetes treatments centres around a hormone in the gut, Glucagon-Like Peptide-1 or GLP-1.

This small protein is secreted every time we have a meal. When we eat, beta-cells secrete insulin to control the glucose and GLP-1 amplifies the amount of insulin produced.

As a result, glucose spikes' immediately after eating are minimised. GLP-1 only works when glucose is too high and switches off when blood sugar reaches normal levels.

Injecting GLP-1 to boost insulin secretion for a diabetic seems an obvious route, but the effects last about two minutes before an enzyme called DP-IV breaks down the protein.

One of Prosidion's compounds inhibits the DP-IV breakdown, allowing the amplifying effect of the GLP-1 to last for longer.

Prosidion has a diverse approach to its drugs pipeline and its patent estate. Some compounds are under development in-house, while one is licensed to Eli Lilly, bringing in substantial up-front, milestone and potential royalty payments.

In 2004, Prosidion acquired a number of patents on DP-IV inhibitors. These are now licensed to 12 big pharma companies, resulting in several drugs already launched or approved.

With multi-billion dollar sales forecast, the royalty stream to Prosidion will be very significant.

The company is really a small biotech within a large US corporation, but a profitable one' to quote Dr Lundemose. The US parent OSI has bases in New York, New Jersey and Colorado and offers cancer treatments.

Prosidion was formed in 2002, using Dr Lundemose's extensive knowledge of diabetes from academia and industry and his track-record as a biotech entrepreneur.

Current staffing is 85 and represents about half of the R&D workforce of the group.

He said: "Our objective is to use platforms to create innovation. We are looking at novel treatments that can be used independently, or in combination."