Inclusion Criteria

• Has type 2 diabetes.
• Has received no treatment with antidiabetic medication in the 12 weeks prior to Screening, other than short-term use defined as less than or equal to 15 days.
• A glycosylated hemoglobin greater than or equal to 7.5% and less than or equal to 10.0% at Screening.
• Body mass index less than or equal to 45 kg/m2.
• Has received counseling on lifestyle modification for type 2 diabetes, including diet and exercise.
• Females of childbearing potential who are sexually active must agree to use adequate contraception, and can neither be pregnant nor lactating from Screening throughout the duration of the study.
• Stable condition as determined by a physician.

Exclusion Criteria

• Type 1 diabetes.
• Unstable angina or heart failure of any etiology with New York Heart Association functional class III or IV.
• History of myocardial infarction, cerebrovascular accident, percutaneous coronary intervention, coronary artery bypass graft, or transient ischemic attack in the 6 months prior to Screening.
• Male participant has a serum creatinine level greater than or equal to 1.5 mg per dL or female subject has a serum creatinine level greater than or equal to 1.4 mg per dL.
• Has a triglyceride level greater than 500 mg per dL.
• Male participant has a hemoglobin level less than 10.5 g per dL or female subject has a hemoglobin level less than 10.0 g per dL.
• Alanine aminotransferase level of greater than 2.5 times the upper limit of normal, active liver disease, or jaundice.
• History of drug abuse (defined as any illicit drug use) or a history of alcohol abuse (defined as regular or daily consumption of more than 2 alcoholic drinks per day) within 2 years prior to Screening.
• Has been discontinued from a thiazolidinedione or metformin therapy due to lack of efficacy or clinical or laboratory signs of intolerance.
• Previous history of cancer, other than basal cell or stage 1 squamous cell carcinoma, that has not been in remission for at least 5 years prior to the first dose of study medication.
• History of acute or chronic metabolic acidosis, including diabetic ketoacidosis with or without coma.
• Any disease or condition at Screening or Randomization that would compromise safety, might affect life expectancy, or make it difficult to successfully manage and follow the subject according to the protocol.
• Currently participating in another investigational study or has participated in an investigational study within 30 days prior to randomization.

• Is required to take or continues taking any disallowed medication, prescription medication, herbal treatment or over-the counter medication that may interfere with evaluation of the study medication, including:

  • Antidiabetic medications other than study medication
  • Chronically used oral or parenteral glucocorticoids
  • Niacin greater than 200 mg per day, including niacin-containing products such as Advicor
  • Chronically used steroid-joint injections