ARADIGM ANNOUNCES ASSET SALE OF INTRAJECT® NEEDLE-FREE TECHNOLOGY
Private Company Created to Launch Novel Migraine Treatment
HAYWARD, CALIFORNIA - AUGUST 28, 2006 -
Aradigm Corporation (NASDAQ: ARDM) today
announced that, in furtherance of its plan to focus on its core
pulmonary delivery expertise, particularly as it applies to the
treatment of respiratory diseases, it has sold its Intraject
subcutaneous delivery technology and related assets to Zogenix Inc., a
newly formed privately-held company. Zogenix plans to complete
development and commercialize the Intraject Sumatriptan product for
migraine, and may seek to commercialize other products based on the
Intraject technology. Under the agreement, Aradigm has received an
upfront payment of $4 million, and may receive an additional milestone
payment and a royalty on sales of the commercialized migraine product,
as well as any future products based on the Intraject technology.
"Strategically, the sale of this asset facilitates the continuous
development of the Intraject product and preserves for Aradigm a share
in its success, while enabling us to move forward with our plans to
focus our resources and efforts on building a portfolio of products for
our core pulmonary business," said Igor Gonda, President and Chief
Executive Officer of Aradigm. "With a solid manufacturing and supply
chain infrastructure for Intraject in place, we expect that Zogenix will
be successful with sumatriptan and other Intraject products."
Roger Hawley, CEO of Zogenix, stated: "Aradigm has done an outstanding
job of developing Intraject to this point, and we look forward to
carrying this effort forward. I am confident Zogenix can successfully
take Intraject Sumatriptan into the marketplace as a patient-friendly
alternative for those who suffer from debilitating migraines."
Aradigm is developing products using its advanced AERx platform and
novel formulations to enable patients to comfortably self-administer
biopharmaceuticals and small molecule drugs. The company's AERx
pulmonary platform is being developed to offer a rapid delivery solution
for liquid drug formulations. Current activities include partnered and
self-initiated development programs addressing the treatment of asthma,
cystic fibrosis, pulmonary hypertension, pulmonary 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.
Novo Nordisk also remains a substantial shareholder and investor in
Aradigm. Additional information about Aradigm can be found at
Zogenix, Inc. is a privately-held specialty pharmaceutical company
focused on the development and sale of CNS and pain therapeutics.
Zogenix raised $60 million in a Series A private venture financing
co-led by Clarus Ventures and Domain Associates, LLC. Additional
investors included BA Venture Partners, Thomas, McNerney & Partners, and
Life Science Angels, Inc. Proceeds from the financing will go towards
acquiring and commercializing products based on the Intraject technology
in the migraine field and other CNS applications and seeking technology
license agreements in other therapeutic areas. Zogenix will be
responsible for executing the remainder of the product development
program and plans to build a sales force and launch Intraject
Sumatriptan into the migraine therapy market. Additional information
about Zogenix can be found at www.zogenix.com.
Except for the historical information contained herein, this news
release contains forward-looking statements that involve risk and
uncertainties, including the expected completion of development and
commercialization of Intraject, clinical results, the timely
availability and acceptance of new products, the impact of competitive
products and pricing, the availability of funding from partners or
capital markets, 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.
Aradigm and AERx are registered trademarks of Aradigm Corporation.