Ownership Submission
FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF 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 *
  RIGBY JONATHAN
2. Date of Event Requiring Statement (Month/Day/Year)
03/07/2006
3. Issuer Name and Ticker or Trading Symbol
ARADIGM CORP [ARDM]
(Last)
(First)
(Middle)
ARADIGM CORPORATION, 3929 POINT EDEN WAY
4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP, Business Development
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

HAYWARD, CA 94545
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 8,000
D
 

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(Month/Day/Year)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Option (Right to Buy)   (1) 09/27/2014 Common Stock 2,000 $ (2) D  
Option (Right to Buy)   (3) 05/12/2014 Common Stock 8,000 $ (2) D  
Option (Right to Buy)   (4) 09/23/2013 Common Stock 3,000 $ (2) D  
Option (Right to Buy)   (5) 08/06/2013 Common Stock 1,000 $ (2) D  
Option (Right to Buy)   (6) 08/22/2012 Common Stock 5,000 $ (2) D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
RIGBY JONATHAN
ARADIGM CORPORATION
3929 POINT EDEN WAY
HAYWARD, CA 94545
      VP, Business Development  

Signatures

Jonathan Rigby, by /s/ Ron A. Metzger, Attorney-in-Fact 03/17/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(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) 50% of the options granted shall vest on the one year anniversary of the grant date and 50% vest on the two year anniversary of the grant date.
(2) Inapplicable.
(3) Option becomes exercisable as to 25% twelve months from May 13, 2004 and 6.25% will then vest each quarter thereafter.
(4) Option becomes exercisable as to 25% twelve months from September 24, 2003 and 6.25% will then vest each quarter thereafter.
(5) Option becomes exercisable in sixteen equal quarterly installments beginning on August 7, 2003.
(6) Option becomes exercisable as to 25% twelve months from July 1, 2003 and 6.25% will then vest each quarter thereafter.

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