-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 AH8zoZ15oXfPu8XiYszbQMMJWbFbghv6wc3zyFj7aZsUAmjSHFKbv/u9tVrDEHJN
 qZz9JTCD0bfxJv8QSx4krg==

<SEC-DOCUMENT>0001255224-04-000117.txt : 20040524
<SEC-HEADER>0001255224-04-000117.hdr.sgml : 20040524
<ACCEPTANCE-DATETIME>20040524182524
ACCESSION NUMBER:		0001255224-04-000117
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040520
FILED AS OF DATE:		20040524

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARADIGM CORP
		CENTRAL INDEX KEY:			0001013238
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				943133088
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		3929 POINT EDEN WAY
		CITY:			HAYWARD
		STATE:			CA
		ZIP:			94545
		BUSINESS PHONE:		5102659000

	MAIL ADDRESS:	
		STREET 1:		3929 POINT EDEN WAY
		CITY:			HAYWARD
		STATE:			CA
		ZIP:			94545

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			NEHRA JOHN M
		CENTRAL INDEX KEY:			0001005547

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-72037
		FILM NUMBER:		04828190

	BUSINESS ADDRESS:	
		STREET 1:		1119 ST PAUL STREET
		CITY:			BALTIMORE
		STATE:			MD
		ZIP:			21202
		BUSINESS PHONE:		4102440115

	MAIL ADDRESS:	
		STREET 1:		1119 ST PAUL ST
		CITY:			BALTIMORE
		STATE:			MD
		ZIP:			21202
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>f4100101040524_185555293.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-05-20</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001013238</issuerCik>
        <issuerName>ARADIGM CORP</issuerName>
        <issuerTradingSymbol>ARDM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001005547</rptOwnerCik>
            <rptOwnerName>NEHRA JOHN M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1119 ST. PAUL STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>BALTIMORE</rptOwnerCity>
            <rptOwnerState>MD</rptOwnerState>
            <rptOwnerZipCode>21202</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Option (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.06</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-05-20</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2004-05-20</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionTimeliness>
                <value></value>
            </transactionTimeliness>
            <transactionAmounts>
                <transactionShares>
                    <value>20000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2004-08-20</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-05-20</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>20000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>20000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Options issued pursuant to issuers 96 Non-Employee Directors' Stock Option Plan.  Options vest quarterly over one year.</footnote>
    </footnotes>

    <remarks>In addition to the shares reported herein, the Reporting Person directly holds options for 80,000 common shares. These options were previously reported.  Susan L. Nehra, the wife of the Reporting Person, also directly owns 292 common shares of the issuer.</remarks>

    <ownerSignature>
        <signatureName>Louis S. Citron, attorney-in-fact</signatureName>
        <signatureDate>2004-05-24</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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