#$%^&*AU2012216266A120120906.pdf#####ABSTRACT 2 R 4 A/ R2f B Y - COR (1) R--X-O. -R5 R3 The present invention provides a compound represented by the formula (I): wherein each symbol is as defined in the description, or a salt thereof. The compound or a salt thereof or a prodrug thereof has a GPR40 receptor function modulating action and is useful as an insulin secretagogue or an agent for the prophylaxis or treatment of diabetes and the like. 35849942 (GHMatters) P79845.AU 1