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| [December 12, 2012] |
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Aradigm Announces Private Placement for $6 Million
HAYWARD, Calif. --(Business Wire)--
Aradigm Corporation (OTCBB:ARDM) (the "Company") today announced that it
has entered into a definitive agreement for the sale of common stock to
two existing shareholders, including accounts managed by First Eagle
Investment Management, LLC, in a private placement for aggregate gross
proceeds of $6 million. The closing of the private placement is subject
to the satisfaction of customary closing conditions.
Under the terms of the agreement, Aradigm has agreed to sell an
aggregate of 50,000,000 shares of common stock at a price of $0.12 per
share. After deducting for fees and expenses, the net proceeds from the
sale of the shares of common stock are anticipated to be approximately
$5.6 million. Aradigm will be required, among other things, to file a
resale registration statement within 60 days following the closing that
covers the resale by the purchasers of the shares.
Igor Gonda, President and Chief Executive Officer of Aradigm stated, "We
are very pleased for the support demonstrated by our shareholders in
this private placement. These proceeds will enable us to further our
product development and formation of partnerships for commercialization."
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann
Financial Services Inc. (NYSE MKT: LTS), acted as the sole placement
agent for this offering.
Important Information
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any security. The shares of common stock
are being sold pursuant to an applicable exemption from the registration
requirements of the Securities Act of 1933, as amended, and applicable
state securities laws.
About inhaled ciprofloxacn (Pulmaquin™ and Lipoquin™)
Ciprofloxacin is a widely prescribed antibiotic to treat infections of
the lung frequently experienced by cystic fibrosis (CF) and non-cystic
fibrosis bronchiectasis (BE) patients. It is often preferred because of
its broad-spectrum anti-bacterial action. The available oral and
intravenous formulations of the drug are used to treat episodes of acute
exacerbations of lung infections in CF patients. The Company's
once-a-day novel inhaled formulations of ciprofloxacin are encapsulated
in liposomes, allowing for a sustained release of the drug within the
lung and improving airway tolerability. The formulations are to be used
for chronic maintenance therapy as they are expected to achieve higher
antibiotic concentration at the site of infection and relatively low
systemic antibiotic concentrations to minimize side-effects. Lipoquin is
a liposomal formulation of ciprofloxacin. Pulmaquin is a dual release
formulation that is a mixture of Lipoquin with unencapsulated
ciprofloxacin. Pulmaquin has been tested extensively in preclinical
tests, as well as in the ORBIT-2 Phase 2b bronchiectasis study in which
outstanding antimicrobial activity coupled with good safety and
tolerability was found, and, most importantly, the positive impact on
prevention of exacerbations compared to placebo was also observed. The
Company previously reported positive results in Phase 2a studies of 22
CF patients and 36 BE patients who received Lipoquin once-a-day for 2
(CF) or 4 (BE) weeks, respectively. Additionally, Aradigm is developing
these formulations as a potential medication for the prevention and
treatment of high threat and bioterrorism infections, such as inhaled
anthrax, tularemia and Q fever. Aradigm has been granted orphan drug
designation for liposomal ciprofloxacin for cystic fibrosis in the U.S.
and the E.U., and for the combination of liposomal ciprofloxacin and
free ciprofloxacin for BE in the U.S.
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. The Company
has product candidates addressing the treatment of bronchiectasis,
cystic fibrosis, inhalation tularemia and anthrax 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 statements regarding the closing of the private
placement, the anticipated net proceeds from the private placement and
the use of such proceeds, as well as the other risks detailed from time
to time in the Company's filings with the Securities and Exchange
Commission (SEC (News - Alert)), including the Company's Annual Report on Form 10-K for
the year ended December 31, 2011 filed with the SEC on March 28, 2012,
and the Company's Quarterly Reports on Form 10-Q.
Aradigm, Pulmaquin, Lipoquin and the Aradigm Logo are registered
trademarks of Aradigm Corporation.
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