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

This study employed a double-blind, randomized, parallel group, single dose design to explore
the pharmacodynamic effects on BG levels in type 2 diabetics following IA administration of
32 mg FX006 compared to 40 mg TCA IR. The study was conducted in male and female patients ≥40
years of age with OA of the knee and type 2 DM not managed by injectable agents. In order to
be eligible for study participation, patients were to be treated with 1 or 2 oral agents and
have hemoglobin A1c (HbA1c) levels between 6.5%-9.0%.

Approximately 36 patients were planned to be randomized and treated to ensure there were at
least 30 evaluable patients (15 patients on FX006 and 15 patients on TCA IR). Patients were
randomized to 1 of 2 treatment groups (1:1) and treated with a single IA injection of either:

- 32 mg FX006 (18 patients) or

- 40 mg TCA IR (18 patients)

BG levels in each patient were evaluated for a total of 3 weeks (1 week prior to IA injection
and 2 weeks post IA injection). After a screening visit, patients' BG levels were measured
using a Dexcom Z4 Platinum Professional™ continuous glucose monitor (CGM) device, set to
blinded mode, for up to 1 week pre-injection and for 2 weeks post injection using the same
blinded CGM device. Patients also were provided with a Bayer Contour™ standard glucose
measuring meter in order to perform the necessary calibrations per the manufacturer's
recommendations. A final safety visit was planned at 6 weeks post-injection.

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