Genetic research into new medicines could save millions of lives in the developing world within a few years, according to a report by an Oxford professor.

Sir David Weatherall, professor of medicine at Oxford University, was lead writer of the World Health Organisation report, which concluded that poorer countries could "leapfrog decades" in terms of health development.

The report said treatments were being developed against such killer diseases as malaria, tuberculosis and HIV/Aids, with the potential to save millions of lives. However, the WHO warned the scientific advances could lead to widening inequality between poor and rich nations, unless pharmaceutical companies funded research into diseases common in developing countries and stopped patenting genetic information.

Patients are already benefiting from drugs based on genetic engineering, but they are often very expensive.

Yet, according to the WHO report, Genomics and World Health, advances in genetic research are already benefiting studies into diseases common in poor countries.

Prof Weatherall said: "DNA-based diagnostics are being developed which will be more efficient and more cost-effective than the existing methods." Countries such as China, Cuba, Brazil and Thailand are using the possibilities opened up by genetic research to develop their own biotechnology industries focusing on diseases common in their countries.

The report also supports the proposal for a £1bn research fund to study developing country diseases.

Prof Weatherall said the WHO should set standards for the ethical issues surrounding genetic research, such as creation of DNA databases and embryo cloning.