New research could lead to better treatment for those suffering from depression by avoiding common side effects caused by some medication.

Often people with depression go off their medication because they experience side effects such as weight gain or sexual dysfunction.

But a study by two Australian scientists, published in British medical journal The Lancet, describes how a new compound improved patients' sleep patterns while avoiding some of the undesirable side effects of other drugs.

Dr Naomi Rogers, one of the researchers behind the study, says often depression medication can just make the situation worse.

"A lot of people don't want to go on medications that cause the sexual function with the weight gain, or they have that happen and decide to stop taking the medication," she said.

Dr Rogers, from the Central Queensland University, and her colleague Professor Ian Hickie, from the Brain and Mind Research Institute in Sydney, began to test a variety of treatments.

Many medications are used to manage people's moods, but Dr Rogers says they wanted to see what targeted people's sleep patterns.

She says they found a synthetic compound called agomelatine had the best results.

Dr Rogers says agomelatine is a nicer drug when it comes to side effects.

"Previously people have often focused just on the mood disruption that's associated with depression," she said.

"We know there's a lot of other symptoms that impact people with depression such as sleep disturbance and the circadian disruptions.

"So we're looking at different approaches that target more of the symptoms and then help to improve overall symptoms and quality of life for these patients."

Dr Rogers says patients often have to try multiple medications to find one that works for them.

While agomelatine is still being trialed in the US, it is widely available and approved for use in Australia.