This study will determine whether 12 weeks of treatment with Lysulin, compared to placebo, causes a reduction from baseline in the plasma levels of glucose, hemoglobin A1c (HbA1c) and Advanced Glycation End products (AGEs) in patients with inadequately controlled type 2 diabetes mellitus and will also determine whether 12 weeks of treatment with Lysulin increases beta-cell function as measured by plasma C-peptide levels.