<SEC-DOCUMENT>0001181431-13-047434.txt : 20130904
<SEC-HEADER>0001181431-13-047434.hdr.sgml : 20130904
<ACCEPTANCE-DATETIME>20130904095610
ACCESSION NUMBER:		0001181431-13-047434
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20130827
FILED AS OF DATE:		20130904
DATE AS OF CHANGE:		20130904

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARADIGM CORP
		CENTRAL INDEX KEY:			0001013238
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				943133088
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		3929 POINT EDEN WAY
		CITY:			HAYWARD
		STATE:			CA
		ZIP:			94545
		BUSINESS PHONE:		5102659000

	MAIL ADDRESS:	
		STREET 1:		3929 POINT EDEN WAY
		CITY:			HAYWARD
		STATE:			CA
		ZIP:			94545

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Grifols SA
		CENTRAL INDEX KEY:			0001438569
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28402
		FILM NUMBER:		131076798

	BUSINESS ADDRESS:	
		STREET 1:		1585 BROADWAY
		STREET 2:		SUITE 2376
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10036
		BUSINESS PHONE:		212-969-3335

	MAIL ADDRESS:	
		STREET 1:		1585 BROADWAY
		STREET 2:		SUITE 2376
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10036
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>rrd389497.xml
<DESCRIPTION>FORM 3
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0206</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2013-08-27</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001013238</issuerCik>
        <issuerName>ARADIGM CORP</issuerName>
        <issuerTradingSymbol>ARDM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001438569</rptOwnerCik>
            <rptOwnerName>Grifols SA</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>AV. GENERALITAT</rptOwnerStreet1>
            <rptOwnerStreet2>152-158 SAN CUGAT DEL VALLES</rptOwnerStreet2>
            <rptOwnerCity>BARCELONA</rptOwnerCity>
            <rptOwnerState>U3</rptOwnerState>
            <rptOwnerZipCode>08174</rptOwnerZipCode>
            <rptOwnerStateDescription>SPAIN</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, no par value</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>209774558</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Pursuant to the Stock Purchase Agreement (the &quot;SPA&quot;), dated May 20, 2013 (the &quot;Signing Date&quot;), between Grifols, S.A. (&quot;Grifols&quot;) and certain other investors (the &quot;Investors&quot;), Aradigm Corporation (&quot;Issuer&quot;) agreed, subject to the terms and conditions set forth therein, to issue and sell a total of 209,774,558 shares of common stock, no par value, of Issuer (&quot;Shares&quot;) to Grifols and an additional 124,193,546 Shares to the Investors, for a total sale of 333,968,104 Shares (the &quot;Stock Sale&quot;), for a purchase price of $0.124 per share. On August 27, 2013 (the &quot;Closing Date&quot;), pursuant to the SPA, Grifols purchased 209,774,558 Shares, for cash consideration of approximately $26.0 million, plus approximately $1.6 million to pay related fees and expenses.</footnote>
        <footnote id="F2">In connection with the consummation of the Stock Sale, Grifols and Issuer entered into (i) the License and Collaboration Agreement, granting Grifols an exclusive, worldwide license to Issuer's inhaled ciprofloxacin program for the indication of non-cystic fibrosis bronchiectasis (the &quot;Program&quot;), (ii) the Option Agreement, granting Grifols a limited term option to license Issuer's AERx(R) pulmonary drug delivery platform, (iii) Governance Agreement, setting forth certain rights and obligations of Issuer and Grifols concerning, inter alia, corporate governance matters, limitations on future acquisitions of Shares by Grifols and rights by Grifols to maintain a target level of ownership in Issuer, (iv) Registration Rights Agreement, providing registration rights to Grifols with respect to the Shares acquired in the Stock Sale, and (v) the Supply Agreement Term Sheet, setting forth binding terms between Issuer and a third party for commercially manufacturing products from the Program.</footnote>
        <footnote id="F3">Concurrently with the execution and delivery of the SPA, Grifols entered into Voting Agreements (the &quot;Voting Agreements&quot;) dated as of the Signing Date with First Eagle Value Biotechnology Master Fund, Ltd (and certain of its affiliates), Boxer Capital, LLC (and certain of its affiliates), Aaron Davis, Ivan Lieberburg, Laurence W. Lytton and MVA Investors, LLC (collectively the &quot;Shareholders&quot;). Under the Voting Agreements, the Shareholders irrevocably agreed, on the terms and subject to the conditions specified in the Voting Agreements, among other things, (i) to vote all 156,978,257 Shares owned by them (to the extent the shares are entitled to vote) in favor of the adoption of certain amendments to Issuer's charter (the &quot;Charter Amendment&quot;) and the approval of the transactions in connection with the SPA (the &quot;Transactions&quot;), and (ii) to grant an irrevocable proxy to certain designees of Grifols with respect to certain matters related to the SPA.</footnote>
        <footnote id="F4">As of May 20, 2013, the Shareholders held an aggregate of 156,978,257 Shares, representing approximately 62.4% of the issued and outstanding Shares reported to be outstanding as of May 9, 2013 by the Issuer on its Form 10-Q filed with the Securities Exchange Commission (the &quot;SEC&quot;) on May 14, 2013. As a result, their votes alone were sufficient to ensure approval of the adoption of the Charter Amendment and the approval of the Transactions. Each Voting Agreement terminated on the Closing Date.  Shared voting power with respect to the Shares beneficially owned by the Shareholders may be deemed to have been acquired through execution of the Voting Agreements prior to their termination upon the closing of the Stock Sale.  As a consequence, Grifols may be deemed to have beneficially owned 156,978,257 Shares prior to the termination of the Voting Agreements on the Closing Date.</footnote>
        <footnote id="F5">For additional information regarding the SPA, the Transactions, and the Voting Agreements, please see the Schedule 13D filed by Grifols with the SEC on September 4, 2013.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ David I. Bell, Authorized Signatory, on behalf of Grifols, S.A.</signatureName>
        <signatureDate>2013-09-04</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
