List of products in the National Drug Code with proprietary name . This medication is used to treat very low blood sugar (hypoglycemia). Certain conditions (such as tumor on the pancreas, cancer, leucine sensitivity) can cause the release of too much insulin. Insulin is a natural substance that lowers blood sugar. This drug works by preventing insulin release from the pancreas, helping to return the blood sugar to normal levels. Diazoxide is a thiazide drug, but has no diuretic ("water pill") effects like other thiazides. Diazoxide should not be used to treat low blood sugar from poor nutrition/diet (functional hypoglycemia).