up the previous loss.The only reasonable explanation on the stock movement turns out to be the latest news on the company. Last week, LifeSci Advisors, LLC reported that the initiated coverage of Aradigm Corporation showed ARDM as a good investment opportunity in connection with its drug candidates. Obviously, the positive opinion about Aradigm’s current clinical development initiatives provoked investors’ interest in the stock and its price jumped up. Though, it is yet hard to guess whether the up move will last longer.
Aradigm is a pharmaceutical company with a main line of business in the development of inhalation drug products for patients with pulmonary disease. Until last month, the company had no marketable products, which was not much encouraging for the investors. Recently, ARDM reported it has received a marketing approval in Germany and the United Kingdom, however, its drug product has not been launched on the market yet due to awaiting additional E.U. authorizations. Until the company receive them, ARDM should probably find another way to get some profit.[BANNER]
According to its latest 10-Q report, revenues of Aradigm have impressively decreased, while its accumulated deficit has increased. As of end-September, the company had cash, cash equivalents and short-term investments of approximately $7.6 million and the management believed that the capital resources will be sufficient to fund operations through at least the first quarter of 2011. However, if the drug candidates of ARDM don’t receive full approval and the anticipated costs of their clinical trials cannot be covered, Aradigm may be required to further reduce its activities or discontinue operations.
