A Medical Device Daily

Aradigm (Hayward, California) reported that it has entered into definitive agreements with investors to sell up to about 40.7 million shares of its common stock for gross proceeds of about $4.1 million, before deducting placement agent fees and estimated offering expenses, in a registered direct offering.

The investors have agreed to purchase the shares of common stock at a negotiated purchase price of 10 cents per share. The investors in the offering are all current Aradigm shareholders.

The shares of common stock are being offered by the company pursuant to a previously filed registration statement, which was declared effective by the Securities and Exchange Commission on Jan. 25. The transaction is expected to close on or about Feb. 26, subject to customary closing conditions.

Piper Jaffray & Co. was sole lead placement agent for the offering and Ladenburg Thalmann & Co. was co-placement agent. Reedland Capital Partners was financial advisor to Aradigm.

Aradigm is a 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 hypertension and COPD, inhalation anthrax infections and smoking cessation.

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