SOURCE: Aradigm Corporation

July 19, 2007 07:00 ET

Aradigm Corporation Enters Into Sublease Agreement With Mendel Biotechnology

HAYWARD, CA--(Marketwire - July 19, 2007) - Aradigm Corporation (OTCBB: ARDM) today announced it has signed a multi-year, renewable agreement to sublease approximately 54,000 square feet in its headquarters facility to Mendel Biotechnology beginning July 18, 2007.

Aradigm will continue to occupy a portion of the facility, housing all of Aradigm's staff, including all R&D laboratories and operations. The sublease agreement is expected to reduce Aradigm's operating costs by approximately $1.5 million per year.

"We are delighted to have reached an agreement with Mendel Biotechnology and to share a first-class facility with them," said Dr. Igor Gonda, Aradigm's President and CEO. "Importantly, we are able to accomplish this without the need for relocation and with no material disruption to our operations."

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. Current activities include partnered and self-initiated development programs addressing the treatment of cystic fibrosis, bronchiectasis, pulmonary hypertension, inhalation anthrax infections and smoking cessation.

In addition, Aradigm's AERx® insulin Diabetes Management System (iDMS), which has been licensed to Novo Nordisk for development and commercialization in return for royalties, is in Phase 3 testing for Type 1 and Type 2 diabetes. Under the agreements with Novo Nordisk, Novo Nordisk is responsible for all further clinical, manufacturing and commercial development, while Aradigm and Novo Nordisk continue to cooperate and share in technology development, as well as intellectual property development and defense. More information about Aradigm can be found at www.aradigm.com.

About Mendel Biotechnology

Mendel Biotechnology, Inc., a closely-held private company founded in 1997, has been a pioneer in the application of functional genomics to the study of plant genes. Mendel has identified and patented the use of genes that control many aspects of plant growth and development, and is using such inventions to develop or co-develop new plant varieties with improved productivity and quality. Mendel has relationships with leading agricultural, forestry and horticulture companies for the commercialization of improved seed and plant products, including Monsanto. Mendel is developing new seed products for the emerging bioenergy market, focused on seeds and feedstock products for the cellulosic ethanol industry. For more information visit www.mendelbio.com.

Forward-Looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including expected reductions in operating costs, as well as the other risks detailed from time to time in Aradigm Corporation's Securities and Exchange Commission (SEC) Filings, including Aradigm's Annual Report on Form 10-K, and quarterly reports on Form 10-Q.

Aradigm and AERx are registered trademarks of Aradigm Corporation.

Contact Information

  • Contact:
    Investor Relations
    Aradigm
    (510) 265-8850/6565

    Lippert/Heilshorn & Associates
    Don Markley or Bruce Voss
    (310) 691-7100