Effects of PN2034 in Insulin-Dependent Patients With Type 2 Diabetes

Inclusion Criteria: * diagnosed with type 2 diabetes mellitus * 21 to 65 years of age * on stable doses of insulin (\>/= 40 units/day) alone or with metformin for at least 3 months * HbA1c level of \>/=7.5% but \</=10.0% * fasting blood sugar level \>/= 125 mg/dL but \</= 279 mg/dL * BMI 26-43 kg/m2 * direct bilirubin \< 1.5x the upper limit of normal (ULN) * serum creatinine \< 1.5 mg/dL (males) or \< 1.4 mg/dL (females) * blood urea nitrogen (BUN)\</=40 mg/dL * all other clinical laboratory parameters (hematology, serum chemistry, and urinalysis) within normal limits or not clinically significant * ECG normal, or abnormalities not clinically significant * surgically sterile,postmenopausal,or using adequate contraception and have a negative pregnancy test at Screening * able to perform daily self-monitoring of blood glucose (SMBG) tests * willing and able to sign an informed consent form Exclusion Criteria: * diagnosed with type 1 diabetes mellitus or has a history of ketoacidosis * treatment with TZDs or any other oral antidiabetic (excluding metformin) within 3 months prior to screening or during study treatment * change in lipid-lowering medication within 2 months of screening * taken systemic corticosteroids within 1 month prior to screening or during study treatment * history of or current/active cardiovascular disease * significant current pulmonary conditions * significant thyroid disease * CPK value \> 3x ULN * a female who is pregnant or lactating * systolic BP \> 160 mm Hg or a diastolic BP \> 90 mm Hg at screening * previous or current history of cancer, other than basal cell or stage 1 squamous cell carcinoma of the skin, that has not been in remission within 5 years prior to randomization * liver function tests (ALT, AST, ALP) \> 2 times ULN, or active liver disease at screening * history of positive HIV * positive hepatitis B test at screening * weight loss or gain \>/= 15 lbs within 3 months of screening * history of substance abuse (including alcohol abuse) within 2 years prior to screening * donated and/or received any blood or blood products within 3 months prior to randomization * taken an investigational study medication within 30 days prior to screening or during the study