Researchers have discovered an inexpensive compound that can fight diarrhea, a sickness that kills up to 2.5 million children annually in the developing world.

The Texas University team that made the discovery described it as a ‘magic bullet’ that could save millions of lives and billions of dollars.

The majority of fatal cases of diarrhea are the result of enterotoxigenic E coli (ETEC) strains, according to an article in Clinical Microbiology Reviews.

The compound targets the virtually untreatable diarrhea caused by ETEC and other bacteria strains that produce toxins that stimulate intestinal linings to secrete excessive fluid, said Stanley G. Schultz, a member of the Texas team.

During pre-clinical tests, the compound was associated with a significant reduction in intestinal fluid secretion in an animal model of bacterial diarrhea.

It was also linked to reduced fluid build up during laboratory tests on human colon cells.

The compound works by interrupting the diarrhea-causing chain of events that occurs when bacterial toxins enter the intestinal tract.

"While this research looks extremely promising as a preventive or therapeutic intervention, much work remains to be done to move into clinical trials and eventual therapeutic approval," said Ferid Murad, a co-author of the study.