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  <TITLE> Aradigm Corporation (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	August 31, 2007
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  	Aradigm Corporation
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	California
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  	0-28402
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  	94-3133088
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	3929 Point Eden Way, Hayward, California
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  	94545
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  _________________________________<BR>
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  ___________<BR>
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  	Registrant&#146;s telephone number, including area code:
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  	(510) 265-9000
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  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:</FONT>
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  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 1.01 Entry into a Material Definitive Agreement.
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  On August 31, 2007, Aradigm Corporation ("Aradigm") and CyDex, Inc. ("CyDex") entered into a Collaboration Agreement (the "Agreement"), which contemplates that the parties will collaborate on the development and commercialization of products that utilize Aradigm&#x2019;s AERx pulmonary delivery technology and CyDex&#x2019;s solubilization and stabilization technologies to deliver inhaled corticosteroids, anticholinergics and beta-2 agonists for the treatment of asthma and chronic obstructive pulmonary diseases (COPD).  Under the terms of the Agreement, the parties will share in the revenue from sales and licensing of such products to a third party for further development and commercialization.  Details of each collaboration project will be determined by a joint steering committee consisting of members appointed by each of the parties.  Costs of each collaboration project will be borne 60% by Aradigm and 40% by CyDex.  Revenues from each collaboration project will be shared in the same ratio.  The Agreement commences on August 31, 2007 and, unless terminated earlier, will extend for a minimum period of two years.  Either party may terminate the Agreement upon advance notice to the other party, and the non-terminating party will retain an option to continue the development and commercialization of any terminated product, subject to payment of a royalty to the terminating party.<br><br>John Siebert, a member of Aradigm&#x2019;s Board of Directors, is the Chief Executive Officer of CyDex.<br>
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  <BR><BR><BR><BR><P ALIGN="LEFT" STYLE="FONT-SIZE: 10PT">The foregoing is a summary description of the terms and conditions of the agreement. It is qualified in its entirety by reference to the Agreement.</P><!-- PageBreak START -->
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  	SIGNATURES
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  	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.
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  	Aradigm Corporation
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  <I>
  	September 6, 2007
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  	By:
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  <I>
  	Igor Gonda
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  	Name: Igor Gonda
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  	Title: President and Chief Executive Officer
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_22505.htm", "description": "LIVE FILING", "secsgml_size_bytes": 9873}]
metadata_filer: {"company-data": {"conformed-name": "ARADIGM CORP", "cik": "0001013238", "assigned-sic": "3845", "irs-number": "943133088", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28402", "film-number": "071101766"}, "business-address": {"street1": "3929 POINT EDEN WAY", "city": "HAYWARD", "state": "CA", "zip": "94545", "phone": "5102659000"}, "mail-address": {"street1": "3929 POINT EDEN WAY", "city": "HAYWARD", "state": "CA", "zip": "94545"}}
text: Aradigm Corporation (Form: 8-K)
  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 (Date of Earliest Event Reported):
  August 31, 2007
  Aradigm Corporation
  __________________________________________
  (Exact name of registrant as specified in its charter)
  California
  0-28402
  94-3133088
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  3929 Point Eden Way, Hayward, California
  94545
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  (510) 265-9000
  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:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  On August 31, 2007, Aradigm Corporation ("Aradigm") and CyDex, Inc. ("CyDex") entered into a Collaboration Agreement (the "Agreement"), which contemplates that the parties will collaborate on the development and commercialization of products that utilize Aradigm's AERx pulmonary delivery technology and CyDex's solubilization and stabilization technologies to deliver inhaled corticosteroids, anticholinergics and beta-2 agonists for the treatment of asthma and chronic obstructive pulmonary diseases (COPD).  Under the terms of the Agreement, the parties will share in the revenue from sales and licensing of such products to a third party for further development and commercialization.  Details of each collaboration project will be determined by a joint steering committee consisting of members appointed by each of the parties.  Costs of each collaboration project will be borne 60% by Aradigm and 40% by CyDex.  Revenues from each collaboration project will be shared in the same ratio.  The Agreement commences on August 31, 2007 and, unless terminated earlier, will extend for a minimum period of two years.  Either party may terminate the Agreement upon advance notice to the other party, and the non-terminating party will retain an option to continue the development and commercialization of any terminated product, subject to payment of a royalty to the terminating party.
  John Siebert, a member of Aradigm's Board of Directors, is the Chief Executive Officer of CyDex.
  The foregoing is a summary description of the terms and conditions of the agreement. It is qualified in its entirety by reference to the Agreement.
  Top of the Form
  SIGNATURES
  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.
  Aradigm Corporation
  September 6, 2007
  By:
  Igor Gonda
  Name: Igor Gonda
  Title: President and Chief Executive Officer