Licogliflozin is primarily used in the treatment of type 2 diabetes mellitus. It functions as a dual inhibitor of sodium-glucose co-transporters 1 and 2 (SGLT1 and SGLT2), which play a crucial role in glucose reabsorption in the kidneys and intestines. By inhibiting these transporters, it helps to reduce blood glucose levels by promoting the excretion of glucose through urine and decreasing its absorption from the digestive tract.

Additionally, it has shown potential in managing non-alcoholic steatohepatitis (NASH), a condition characterized by liver inflammation and fat accumulation, by improving metabolic parameters and reducing liver fat content. Its dual action makes it a promising candidate for addressing both hyperglycemia and associated metabolic disorders. Ongoing research is exploring its efficacy in other metabolic conditions and its long-term benefits in improving patient outcomes.