Aradigm Announces First Quarter 2009 Financial Results

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May 12, 2009

Aradigm Announces First Quarter 2009 Financial Results

HAYWARD, Calif., May 12, 2009 (BUSINESS WIRE) -- Aradigm Corporation (OTCBB:ARDM)(the "Company")today announced financial results for the first quarter and three months ended March 31, 2009.

No revenue was recorded for either the first quarter of 2009 or the first quarter of 2008. Research and development reimbursements received in connection with the collaboration with Lung Rx, Inc. for the development of inhaled treprostinil in the AERx(R) delivery system have been recorded as deferred revenue as they cannot be recognized under current revenue recognition rules.

Total operating expenses for the first quarter of 2009 were $5.1 million, compared with total operating expenses of $5.9 million for the first quarter of 2008. The decrease in operating expenses was primarily due to cost control efforts and the timing of research and development expenses associated with the Company's lead product candidate inhaled liposomal ciprofloxacin, partially offset by an increase in R&D expenses associated with the collaboration with Lung Rx, Inc. The Company's net loss for the first quarter of 2009 was $5.2 million, or $0.07 per share, compared with a net loss of $5.6 million, or $0.10 per share, for the same period in 2008.

As of March 31, 2009, cash and cash equivalents totaled $19.8 million.

Recent Highlights

The Company has:

  • Had an abstract accepted for presentation at the 2009 International Conference of the American Thoracic Society. Data presented will be from the Company's Phase 2a studies of inhaled liposomal ciprofloxacin in cystic fibrosis and non-cystic fibrosis bronchiectasis patients.
  • Conducted a two day meeting with the Company's Scientific Advisory Board and experts in the field of bronchiectasis to discuss the development plan for its once-daily inhaled liposomal ciprofloxacin. Based on the consensus of management and its advisors, the Company has decided to pursue non-cystic fibrosis bronchiectasis as the lead indication. Bronchiectasis is caused by chronic necrotizing infection of the bronchi and bronchioles and is associated with abnormal dilatation of the airways. It is frequently observed in patients with cystic fibrosis. However, it is a condition also affecting approximately 110,000 patients without cystic fibrosis in the United States, and results from a cycle of recurrent infection, inflammation and bronchial wall damage. There is currently no drug specifically approved for the treatment of this condition in the U.S. The Company was granted orphan drug designation for the treatment of bronchiectasis with inhaled liposomal ciprofloxacin.
  • Applied for and was granted SME status by the European Medicines Agency (EMEA). SME status is granted to micro, small and medium-sized enterprises, and is aimed at promoting innovation and the development of new medicinal products. Pursuant to the SME regulation, once companies have been granted SME status they can access financial assistance (in the form of fee reductions and fee deferrals) and administrative assistance from the EMEA.

About Aradigm

Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of drugs delivered by inhalation for the treatment of severe respiratory diseases by pulmonologists. Current activities include partnered and self-initiated development programs addressing the treatment of cystic fibrosis, bronchiectasis, pulmonary arterial hypertension, COPD, inhalation anthrax infections and smoking cessation.

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

More information about Aradigm can be found at

Forward-Looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including the advancement of product development, the ability to obtain financing, sell assets, secure grants and enter into collaboration arrangements and the ability to successfully manage and preserve cash, as well as the other risks detailed from time to time in Aradigm Corporation's Securities and Exchange Commission (SEC) Filings, including the Company's Annual Report on Form 10-K, and quarterly reports on Form 10-Q.



(In thousands, except per share data)


Three months ended

March 31,

Revenues $ -- $ --

Operating expenses:
Research and development 3,726 4,329
General and administrative 1,398 1,549
Restructuring and asset impairment 17 22
Total operating expenses 5,141 5,900
Loss from operations (5,141 ) (5,900 )
Interest income 28 361
Interest expense (104 ) (98 )
Other income (expense), net (1 ) (1 )
Net loss $ (5,218 ) $ (5,638 )
Basic and diluted net loss per common share $ (0.07 ) $ (0.10 )
Shares used in computing basic and diluted net loss per common share 70,704 54,007



(In thousands)

March 31,


December 31,


(Unaudited) *
Current assets:
Cash and cash equivalents $ 19,784 $ 16,741
Short-term investments



Receivables 27 393
Restricted cash 225 225
Prepaid and other current assets 251 387
Total current assets 20,287 20,145
Property and equipment, net 4,792 5,093
Notes receivable 50 34
Other assets 241 247
Total assets $ 25,370 $ 25,519
Current liabilities:
Accounts payable 773 739
Accrued clinical and cost of other studies 841 94
Accrued compensation 922 1,051
Facility lease exit obligation 282 318
Other accrued liabilities 617 630
Total current liabilities 3,435 2,832
Deferred rent 175 199
Facility lease exit obligation, non-current 996 1,056
Deferred revenue, non-current 4,435 4,122
Other non-current liabilities 79 82
Note payable and accrued interest 8,576 8,472
Shareholders' equity 7,674 8,756
Total liabilities and shareholders' equity $ 25,370 $ 25,519

* The balance sheet at December 31, 2008 has been derived from the audited financial statements at that date.

SOURCE: Aradigm Corporation

Investor Relations
Lippert/Heilshorn & Associates
Don Markley or Bruce Voss, 310-691-7100

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