Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
First Eagle Value in Biotechnology Master Fund, Ltd.
   2. Issuer Name and Ticker or Trading Symbol
ARADIGM CORP [ARDM] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director __X__ 10% Owner
_____ Officer (give title below) __X__ Other (specify below)
See Remarks
(Last)
(First)
(Middle)
C/O FIRST EAGLE INV MGMT, GEN. COUNSEL, 1345 AVENUE OF THE AMERICAS		 3. Date of Earliest Transaction (Month/Day/Year)
09/21/2010
(Street)

NEW YORK, NY 10105		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 09/21/2010   X   4,215,239 A $ 0.1184 60,732,909 I (1) See notes (1)

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Common Stock Warrants (Right to Buy) $ 0.1184 09/21/2010   X     4,215,239   (2)   (2) Common Stock 4,215,239 $ 0 0 I (2) See notes (2)

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
First Eagle Value in Biotechnology Master Fund, Ltd.
C/O FIRST EAGLE INV MGMT, GEN. COUNSEL
1345 AVENUE OF THE AMERICAS
NEW YORK, NY 10105		     X   See Remarks
DEF Associates N.V.
C/O FIRST EAGLE INV MGMT, GEN COUNSEL
1345 AVE OF THE AMERICAS
NEW YORK, NY 10105		     X   See Remarks
21 APRIL FUND LTD
C/O FIRST EAGLE INV MGMT, GEN COUNSEL
1345 AVENUE OF THE AMERICAS
NEW YORK, NY 10105		     X   See Remarks
21 APRIL FUND LP
C/O FIRST EAGLE INV MGMT, GEN COUNSEL
1345 AVENUE OF THE AMERICAS
NEW YORK, NY 10105		     X   See Remarks

Signatures

 Dan DeClue   09/22/2010
**Signature of Reporting Person Date
 Dan DeClue   09/22/2010
**Signature of Reporting Person Date
 Dan DeClue   09/22/2010
**Signature of Reporting Person Date
 Dan DeClue   09/22/2010
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Consists of 2,107,620 shares acquired upon the required exercise of a warrant held by First Eagle Value in Biotechnology Master Fund, Ltd. ("FEVIBMF"), 331,197 shares acquired upon the required exercise of a warrant held by 21 April Fund, L.P. ("21 April LP"), 1,174,245 shares acquired upon the required exercise of a warrant held by 21 April Fund, Ltd. ("21 April Ltd.") and 602,177 shares acquired upon the required exercise of a warrant held by DEF Associates N.V. ("DEF Associates" and together with FEVIBMF, 21 April LP and 21 April Ltd., the "Funds"). The Funds may be deemed to be members of a Section 13(d) group owning more than 10% of the issuer's outstanding common stock. Each of the Funds disclaims Section 16 beneficial ownership of the reported securities and this report shall not be deemed an admission that any such Fund is the beneficial owner of such securities, except to the extent of its pecuniary interest therein.
(2) Consists of 2,107,620 warrants purchased by FEVIBMF, 331,197 warrants purchased by 21 April LP, 1,174,245 warrants purchased by 21 April Ltd. and 602,177 warrants purchased by DEF Associates. The warrants became exercisable upon shareholder approval. The warrants expire upon the earlier of 10 business days after shareholder approval or September 19, 2010. The Funds may be deemed to be members of a Section 13(d) group owning more than 10% of the issuer's outstanding common stock. Each of the Funds disclaims Section 16 beneficial ownership of the reported securities and this report shall not be deemed an admission that any such Fund is the beneficial owner of such securities, except to the extent of its pecuniary interest therein.

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