Study terminated as a result of interim analysis not meeting predetermined criteria.

The purpose of this study is to learn whether PPM-204 has an effect on lowering blood glucose (blood sugar) levels and is safe in treating people with type 2 diabetes.

The objectives of the study are to identify doses of PPM-204 that are therapeutically effective and well tolerated in improving glycemic control over 24 weeks of treatment in subjects with type 2 diabetes mellitus (T2DM).

Inclusion Criteria:

• Men and women of non-childbearing potential, 18 to 70 years old
• Subjects currently treated with diet and exercise alone and subjects receiving a single oral antidiabetic medication
• BMI > 23 and < 43
• For subjects currently treated with 1 antidiabetic medication: HbA1c is greater than or equal to 6.8% and less than or equal to 8.5%.
• For subjects not currently treated with antidiabetic medications: HbA1c is greater than or equal to 7.2% and less than or equal to 9.0%

Exclusion Criteria:

• Subjects requiring insulin therapy
• Subjects currently receiving 2 or more oral antidiabetic medications
• Subjects requiring systemic corticosteroids, unless treatment was discontinued at least 4 weeks before the screening visit
• Subjects receiving warfarin
• Subjects currently receiving thiazolidinediones, unless treatment was discontinued 8 weeks before the screening visit
• Significant diabetic complications (retinopathy, nephropathy, symptomatic neuropathy)