8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 13, 2010

Aradigm Corporation
__________________________________________
(Exact name of registrant as specified in its charter)

California	0-28402	94-3133088
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
3929 Point Eden Way, Hayward, California		94545
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: (510) 265-9000

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On May 13, 2010, Aradigm Corporation (the "Company") announced via press release the Company’s financial results for its first quarter ended March 31, 2010. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in the report, including Exhibit 99.1 attached hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release of Aradigm Corporation dated May 13, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Aradigm Corporation
May 13, 2010	By:	D. Jeffery Grimes
		Name: D. Jeffery Grimes
		Title: Vice President, Legal Affairs, General Counsel and Corporate Secretary

Exhibit Index

Exhibit No.	Description
99.1	Press Release of Aradigm Corporation dated May 13, 2010

EX-99.1

Aradigm Announces First Quarter 2010 Financial Results

Milestone Receipt and Expense Reduction Efforts Significantly Reduce Net Loss

Hayward, CA – May 13, 2010 – Aradigm Corporation (OTC BB: ARDM.OB) (the “Company”) today announced financial results for the first quarter and three months ended March 31, 2010.

Total revenue was $4.0 million for the first quarter of 2010, compared with zero revenue for the first quarter of 2009. Revenue for the first quarter of 2010 reflects the receipt of the milestone payment due from Zogenix, Inc. upon the first U.S. sale of SUMAVEL* DosePro* needle-free delivery system for treatment of acute migraine and cluster headaches.

We anticipate recording recurring royalty revenue beginning with the three months ending September 30, 2010 since the terms of our asset sale agreement with Zogenix provides for royalty payments to be based on cash received by Zogenix on their product sales and there is a sixty day lag following the end of the quarter in royalty reporting. We have been informed by Zogenix that wholesalers distributing the SUMAVEL DosePro product were given net 90 day payments terms for the first quarter sales, resulting in the effective delay of first quarter 2010 royalties until the second quarter 2010 royalty payment due in late August 2010. After the first quarter of 2010, the payment terms for wholesalers reverted to net 30 days.

Total operating expenses for the first quarter of 2010 were $4.1 million, compared with total operating expenses of $5.1 million for the first quarter of 2009. The decrease in operating expenses was primarily due to expense reduction efforts and the elimination of R&D expenses associated with the collaboration with Lung Rx, Inc. The Company’s net loss for the first quarter of 2010 was $0.2 million, or $0.00 per share, compared with a net loss of $5.2 million, or $0.07 per share, for the same period in 2009.

As of March 31, 2010, cash, cash equivalents and short-term investments totaled $8.9 million.

Recent Highlights

• May 5, 2010: announced that clearance was received from the U.S. Food and Drug Administration for the Company’s inhaled liposomal ciprofloxacin (ARD- 3100) Investigational New Drug (IND) application for the management of cystic fibrosis (CF). The first trial planned under this IND is a Phase 1/2a study in pediatric CF patients.

• April 26, 2010: presented data from the Company’s Ciprofloxacin for Inhalation (ARD-3100) development program at the Respiratory Drug Delivery 2010 Conference in Orlando, FL. The first presentation by Dr. Paul Bruinenberg, the Company’s Medical Director, entitled “Inhaled Liposomal Ciprofloxacin: Once a Day Management of Respiratory Infections” described the significant anti-infective effect of once a day ARD-3100 coupled with good tolerability in cystic fibrosis, as well as in non–CF bronchiectasis patients. The second poster presentation by David Cipolla, the Company’s Sr. Director of Pharmaceutical Development, entitled “Inhaled Liposomal Ciprofloxacin: In Vitro Properties and Aerosol Performance” described the robust liposomal ciprofloxacin formulation that retains its chemical properties and performance characteristics throughout two years of storage and during nebulization.

“We continue to make focused clinical and regulatory progress with our inhaled liposomal ciprofloxacin treatments ARD-3100 and ARD-3150 and are projecting to report the results from the ORBIT-1 and ORBIT-2 Phase 2b studies in non-CF bronchiectasis in the second half of this year,” said Igor Gonda, CEO and President of Aradigm.

About Aradigm

Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of a portfolio of drugs delivered by inhalation for the treatment of severe respiratory diseases by pulmonologists. The Company has product candidates addressing the treatment of cystic fibrosis, bronchiectasis, inhaled bioterrorism infections and smoking cessation.

More information about Aradigm can be found at www.aradigm.com.

Forward-Looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including the timing and results of clinical trials and the payment of royalties, as well as the other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 filed with the SEC on March 24, 2010, and the Company’s Quarterly Reports on Form 10-Q.

Aradigm and the Aradigm Logo are registered trademarks of Aradigm Corporation.

• Other names and brands may be claimed as the property of others.

SOURCE: Aradigm Corporation

Contact: Nancy Pecota, Chief Financial Officer, 510-265-9370

ARADIGM CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

	Three months ended
	March 31,
	2010			2009
Revenues	$	4,000		$	—
Operating expenses:
Research and development		2,837			3,726
General and administrative		1,253			1,398
Restructuring and asset impairment		13			17
Total operating expenses		4,103			5,141
Loss from operations		(103	)		(5,141	)
Interest income		10			28
Interest expense		(109	)		(104	)
Other income (expense), net		(2	)		(1	)
Net loss	$		(204)	$	(5,218	)
Basic and diluted net loss per common share	$	(0.00	)	$	(0.07	)
Shares used in computing basic and diluted net loss per common share		99,872			70,704

ARADIGM CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)

	March 31,			December 31,
	2010			2009
ASSETS
Current assets:
Cash and cash equivalents	$	5,861		$	3,903
Short-term investments		3,006			5,228
Receivables		224			155
Prepaid and other current assets		374			328
Total current assets		9,465			9,614
Property and equipment, net		2,001			2,166
Notes receivable		52			52
Other assets		131			133
Total assets	$	11,649		$	11,965
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		766			572
Accrued clinical and cost of other studies		160			670
Accrued compensation		282			341
Facility lease exit obligation		223			263
Other accrued liabilities		321			357
Total current liabilities		1,752			2,203
Deferred rent		130			136
Facility lease exit obligation, non-current		806			828
Other non-current liabilities		75			75
Note payable and accrued interest		9,004			8,896
Shareholders’ equity		(118	)		(173	)
Total liabilities and shareholders’ equity	$	11,649		$	11,965

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