This study will compare glucose lowering with CS-917 compared to placebo after 3 months of treatment

Inclusion Criteria:

• Drug naive or newly diagnosed type 2 diabetic subjects:
• Never received oral antihyperglycemic or insulin therapy or
• No oral antihyperglycemic or insulin therapy for more than 6 months since original diagnosis and
• No insulin therapy within one year of screening, with the exception of use during hospitalization or for use in gestational diabetes and
• No antihyperglycemic therapy for more than three consecutive days, or a total of of seven non-consecutive days, during the 8 weeks prior to screening.
• HbA1C>6.7% and < or = to 10% at screening

Exclusion Criteria:

• Current insulin therapy
• Symptoms of poorly controlled diabetes
• History of diabetic ketoacidosis or hyperosmolar, nonketonic coma within one year of screening
• Serum bicarbonate < or = to 19 meq/L
• Serum creatinine (Scr) > 1.4 mg/dL (females) or 1.5 mg/dL (males)
• Contraindication to metformin