The present invention aims at providing compounds having therapeutic
effects due to a DPP-IV inhibitory action, and satisfactory as
pharmaceutical products.The present inventors have found that derivatives
having a substituent introduced into the .gamma.-position of proline
represented by the formula (I) ##STR00001## wherein each symbol is as
defined in the specification, have a potent DPP-IV inhibitory activity,
and completed the present invention by increasing the stability.