An oral formulation based on liposome encapsulated alginate-chitosan gel ca
psules was developed for insulin delivery for the treatment of diabetes. Li
posome encapsulation helped to increase the encapsulation efficiency of ins
ulin in alginate-chitosan capsules. This formulation delivers insulin in th
e neutral environment of the intestine, by-passing the acidic media in the
stomach, with increased drug absorption and bioavailability. Oral administr
ation of this formulation was found to reduce blood glucose levels when tes
ted in diabetic rats.