Inclusion Criteria:

• Female, >55 to <80 years
• >5 years menopausal
• T2DM diagnosis according to ADA, AACE, CDA, WHO/IDF
• Drug-naïve (HbA1c < or = 9.0%); OR Prior monotherapy, submaximal doses of metformin (< or = 1000mg MET), sulfonylureas (< or = 5mg Glyburide, < or = 10mg Glipizide or < or = 8mg glimepiride) or full dose Januvia (100mg) (HbA1c < or = 8.5%); OR Prior monotherapy, > submaximal doses of metformin (>1000mg) or sulfonylureas (>5mg Glyburide, >10mg Glipizide or >8mg glimepiride) (HbA1c < or = 7.0%)
• Weighs <300 lbs (136.4 kg)
• Two or more vertebra (L1-L4) suitable for BMD measurement by DXA
• Absolute BMD value consistent with T-score >-2.5 at femoral neck, lumbar spine and total hip

Exclusion Criteria:

• T1DM or history of DKA
• Renal or hepatic disease (clin. sig.)
• Hepatocellular rxn, severe edema, or med. serious fluid event associated with TZD
• Recent (<6mos) history or clinical intervention for angina or myocardial infarction or is taking nitrates
• Any stage of heart failure, i.e. NYHA class I-IV
• Systolic BP >160mmHg or diastolic BP >90mmHg while on antihypertensive
• Hypersensitivity to TZDs, biguanides
• Prior tx with two or more OAD agents
• Bilateral hip replacements
• Concurrent diseases affecting bone metabolism
• Active malabsorption syndrome
• Serum calcium outside the central lab ref range
• Thyroid replacement therapy, serum TSH must be within range
• Vitamin D deficiency
• Previous tx with: strontium, IV bisphosphonate, fluoride, hormones, calcineurin inhibitors or methotrexate
• Chronic systemic corticosteroid [e.g. glucocorticoid, mineralocorticoid] treatment of no more than two intra-articular injections within the past year or use of oral parenteral, or long-term, high-dose inhaled corticosteroids