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: July 03, 2006

(Date of earliest event reported)




Aradigm Corporation

(Exact name of registrant as specified in its charter)





CA

(State or other jurisdiction 
of incorporation)


0-28402

(Commission File Number)


94-3133088

(IRS Employer 
Identification Number)






3929 Point Eden Way

(Address of principal executive offices)

 

94545

(Zip Code)




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




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:


 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  

 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  





Item 1.01. Entry into a Material Definitive Agreement



On July 5, 2006, Aradigm Corporation (Aradigm or the "Company") announced the execution of an agreement further developing the strategic partnership with Novo Nordisk. This agreement is comprised of an intellectual property assignment, a royalty prepayment and an eight-year promissory note. This agreement has resulted in a non-dilutive cash infusion to Aradigm of $27.5 million. A copy of the press release is referenced as Exhibit 99.1.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant



The contents of Item 1.01 are incorporated by reference into this Item 2.03 as though fully set forth herein.



Item 9.01. Financial Statements and Exhibits


(a) Financial statements:

             None

(b) Pro forma financial information:

             None

(c) Shell company transactions:

             None

(d) Exhibits

             99.1       Press Release of Aradigm Corporation dated July 5, 2006



SIGNATURE

      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.








Dated: July 6, 2006



ARADIGM CORPORATION

By:  /s/ Thomas C. Chesterman                      

     Thomas C. Chesterman

     SVP and Chief Financial Officer







Exhibit Index



Exhibit No.
Description


99.1
Press Release of Aradigm Corporation dated July 5, 2006