Glucagon is a hormone produced by the pancreas that stimulates the liver to produce glucose (sugar). Overproduction of glucose by the liver is an important cause of high plasma glucose levels in patients with type 2 diabetes and is believed to be due in part to inappropriately elevated levels of glucagon. High plasma glucose levels can cause diabetic complications such as blindness and kidney disease. Glucagon receptor antagonists are designed to lower plasma glucose levels by reducing the production of glucose by the liver. Glucagon receptor antagonists are novel molecules that have demonstrated a reduction of plasma glucose and hemoglobin A1c in patients with type 2 diabetes in mid-stage clinical trials. Our potent, novel compound, LGD-6972, has demonstrated significant and consistent glucose lowering activity and a desirable safety profile in animal models and in Phase 1 clinical trials. LGD-6972 has a unique chemical structure that offers desirable drug-properties, and is in Phase 2 testing.