Aradigm Corp. (OTCBB:ARDM) On A Remarkable Climb

ARDMchart.pngFor most of the year Aradigm Corp. (OTCBB:ARDM) has been fluctuating around the $0.12 levels with no major deviation in either way. That changed when in April it began sliding down reaching as low as $0.09. But now in just 7 sessions they have skyrocketed and yesterday saw them add another 25% to close at $0.195. Despite the above average price per share compared to the other pennystocks traded volume was also quite high with more than 800 hundred shares changing owners.

Aradigm Corp. are focused on the development of drugs delivered by inhalation for the treatment of severe respiratory diseases. More specifically they are trying to devise treatments for non-cystic fibrosis bronchiectasis (BE) through the use of their products – Pilmaquin and Lipoquin. ARDM have successfully completed Phase IIb clinical trials and will be striving to advance into Phase III trials. In order to do that they had the following resources to rely on according to their quarterly report for the period ending March 31:

  • $2.1 million cash
  • $4.8 million total current assets
  • $1.4 million total current liabilities
  • $3.3 million net loss

The company is receiving a stable flow of revenues due to the royalties being paid to them amounting to $291 thousand for the period. A major problem for the them is the enormous accumulated deficit of $374 million.

ARDMlogo.jpgBut the recent surge can be attributed to only one thing and that is the press announcement made by ADRM on May 21. The company revealed an exclusive worldwide license of their products with Grifols, S.A., a NASDAQ listed spanish company. In addition as part of the deal Grifols will buy a total of 209 million shares priced at $0.124 each for the total amount of $26 million. This funding will be backed up by the existing shareholders of ADRM who will buy 124 million shares at the same price for a total amount of $15.4 million.The transactions are to be completed before November 20 so for now the company may continue climbing further up.

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