Aradigm and APT Pharmaceuticals Announce Progression of AERx HCQ Program Into Phase 2 Clinical Trials

HAYWARD, Calif. and TUCSON, Ariz., July 21 /PRNewswire-FirstCall/ — Aradigm Corporation and APT Pharmaceuticals Inc., a privately held biotechnology company, today announced the program advancement of APT’s proprietary formulation of hydroxychloroquine (HCQ) into Phase 2 clinical trials. APT and Aradigm are developing this aerosolized formulation of the anti-inflammatory agent HCQ in Aradigm’s AERx pulmonary delivery system as a new class of treatment for asthma and chronic obstructive pulmonary disease.

As part of the APT-funded program, Aradigm will source the active pharmaceutical ingredient, conduct the formulation development of the drug product, manufacture clinical supplies and execute regulatory and clinical development.

“This partnership combines an innovative formulation of a powerful anti-inflammatory agent with the efficient and precise delivery capabilities of the AERx System,” said Stephen Farr, Ph.D., Senior Vice President and Chief Scientific Officer of Aradigm. “We are very pleased with positive AERx HCQ clinical results to date and in the progression of this and the other AERx programs in our clinical pipeline.”

Aradigm and APT recently completed a Phase 1 study in healthy volunteers, which determined that AERx delivered HCQ had a favorable safety and tolerability profile that enabled progression into the Phase 2 clinical program.

“After extensive review, APT chose Aradigm’s AERx system for its ability to selectively deliver HCQ to the deep lung with minimal mouth and throat deposition which has been one of our primary goals,” said APT President Gino Di Sciullo, Ph.D. “Now we have a delivery platform with optimal parameters that enables us to examine the anti-inflammatory effects of the drug in asthma. We are very pleased to continue our clinical development partnership with Aradigm for the AERx pulmonary product line.”

Recently, APT closed a round in a Series A financing with Charter Life Sciences and Research Corporation Technologies. The financing positions the company to continue its pulmonary product development program with Aradigm.

About APT Pharmaceuticals Inc.

APT is a clinical-stage company developing products to treat respiratory diseases. The company is developing steroid alternative therapies based on novel reformulations and methods of treatment with hydroxychloroquine (HCQ). U.S. Patent No. 6,572,858 and other pending worldwide patent applications protect the APT technology.

About Aradigm Corporation

Aradigm develops non-invasive delivery systems to enable patients to comfortably self-administer biopharmaceuticals and small molecules. The company’s advanced AERx(R) pulmonary and Intraject(R) needle-free delivery technologies offer rapid delivery solutions for liquid drug formulations. Current development programs focus on neurological disorders, heart disease, respiratory conditions, diabetes and cancer. More information about Aradigm can be found at http://www.aradigm.com/.

Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including clinical results, the timely availability and acceptance of new products, the impact of competitive products and pricing, and the management of growth, as well as the other risks detailed from time to time in Aradigm Corporation’s Securities and Exchange Commission (SEC) Filings, including the company’s Annual Report on Form 10-K, and quarterly reports on Form 10-Q.

   NOTE:  AERx and Intraject are registered trademarks of Aradigm.     Contact:    Christopher Keenan         or       Jan McCoy Hutchinson    Aradigm Corporation                 APT Pharmaceuticals Inc.    510-265-9370                        520-748-4458  

Aradigm Corporation

CONTACT: Christopher Keenan of Aradigm Corporation, +1-510-265-9370; orJan McCoy Hutchinson of APT Pharmaceuticals Inc., +1-520-748-4458

Web site: http://www.aradigm.com/