Study to Assess the Effects of FX006 on Blood Glucose in Patients With OA of the Knee and Type 2 Diabetes

Inclusion Criteria: * Willingness and ability to comply with the study procedures and visit schedules and ability to follow verbal and written instructions * Male or female ≥40 years of age * Type 2 diabetes mellitus for at least 1 year prior to Screening and not managed with injectable agents (e.g. insulin or insulin analogs, exenatide, pramlintide, liraglutide) * Currently treated with 1 or 2 oral agents for diabetes, with stable doses for at least 2 months * HbA1c ≥6.5% and ≤ 9.0% * Currently meets American College of Rheumatology (ACR) Criteria (clinical or radiological) for OA. * Symptoms associated with OA of the knee for ≥ 6 months prior to Screening * Index knee pain on most days (\>15) over the last month (as reported by the patient) * Body mass index (BMI) ≤ 40 kg/m2 * Willingness to abstain from use of protocol-specified restricted medications during the study * Willingness to wear a CGM device uninterrupted for 24 hours per day throughout the study, remain with receiving range and comply with calibration requirements * Accustomed to using a Standard Blood Glucose Measuring device by finger stick Exclusion Criteria: * Reiter's syndrome, rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis or arthritis associated with inflammatory bowel disease * History of infection in the index knee joint * Clinical signs and symptoms of active knee infection or crystal disease of the index knee within 1 month of Screening * Presence of surgical hardware or other foreign body in the index knee * Unstable joint (such as a torn anterior cruciate ligament) within 12 months of screening * IA corticosteroid (investigational or marketed) in any joint within 3 months of Screening * IA hyaluronic acid (investigational or marketed) in the index knee within 6 months of Screening * IV or intramuscular (IM) corticosteroids (investigational or marketed) within 3 months of Screening * Oral corticosteroids (investigational or marketed) within 1 month of Screening * Inhaled, intranasal or topical corticosteroids (investigational or marketed) within 2 weeks of Screening * Any other IA investigational drug/biologic within 6 months of Screening * Prior use of FX006 * Use of acetaminophen, or acetaminophen containing products * Current use of a continuous glucose monitoring device * Women of child-bearing potential not using effective contraception or who are pregnant or nursing