Forxigatm, available as once-daily tablet, is used in combination with other treatments, if adequate blood glucose control in patients is not provided, with insulin and together with diet and exercise.
The drug can also be used as a monotherapy, when diet and exercise alone do not work in patients and for whom the blood glucose lowering product metformin cannot be tolerated.
The approval was based on the study, which compared dapagliflozin in combination with the metformin, with a sulphonylurea plus metformin.
The results showed mean weight loss of 3.70kg at two years in patients treated with dapagliflozin plus metformin, compared with a mean weight gain of 1.36kg in patients treated with a sulphonylurea plus metformin, a difference in weight change of 5.06kg.
Aston University clinical science professor Clifford Bailey said weight management is also important for managing Type 2 diabetes.
"Dapagliflozin works in a different way to existing treatments. It removes excess glucose from the body along with the associated calories," Bailey added.
"So dapagliflozin can be used in conjunction with most commonly used diabetes medications to lower blood glucose, and has the added benefit of weight loss."
The companies said Type 2 diabetes drug will be available in the UK later in November 2012.