Fasiglifam is primarily investigated for its potential therapeutic applications in the treatment of type 2 diabetes. It functions as a selective agonist for the G-protein-coupled receptor 40 (GPR40), which is involved in enhancing glucose-dependent insulin secretion from pancreatic beta cells. By targeting this receptor, Fasiglifam aims to improve glycemic control in patients with diabetes, offering a novel approach to managing blood sugar levels. Its mechanism of action is distinct from other antidiabetic agents, as it stimulates insulin release only in the presence of elevated glucose, reducing the risk of hypoglycemia. Clinical studies have explored its efficacy and safety, though development was halted due to concerns over liver toxicity. Despite this, Fasiglifam remains a significant compound in diabetes research, contributing to the understanding of GPR40 as a therapeutic target.