Grifols, S.A. and Aradigm Corporation Announce Signing of Worldwide Licensing Agreement to Develop and Commercialize

  Grifols, S.A. and Aradigm Corporation Announce Signing of Worldwide
  Licensing Agreement to Develop and Commercialize Pulmaquin™

  Aradigm’s Proprietary Inhaled Ciprofloxacin Formulation is a Potential New
             Therapy for Patients with Severe Respiratory Disease

Business Wire

BARCELONA, Spain & HAYWARD, Calif. -- May 21, 2013

Grifols, S.A. (MCE:GRF, MCE:GRF.P and NASDAQ:GRFS) (“Grifols”) and Aradigm
Corporation (OTC BB:ARDM.OB) (“Aradigm”)  today announced the signing of an
exclusive, worldwide license for Aradigm’s proprietary formulations of inhaled
ciprofloxacin (Pulmaquin and Lipoquin™) for the treatment of severe
respiratory diseases, including non-cystic fibrosis bronchiectasis (BE).
Aradigm has completed Phase 2b clinical trials in BE patients with Pulmaquin
and Lipoquin.

BE is a chronic condition that affects about 110,000 people in the United
States and many more in other countries and is characterized by abnormal
dilatation of the bronchi and bronchioles associated with chronic respiratory
infections. Aradigm has been granted orphan drug designation for BE in the
U.S. and there is currently no drug specifically approved for the treatment of
this condition.

Under the terms of the transaction:

  *The parties have agreed to advance Aradigm’s proprietary inhaled
    ciprofloxacin formulations into Phase III clinical trials in BE.
  *Grifols will be responsible for all development and clinical expenses up
    to a maximum of $65 million for the BE indication.
  *Aradigm is entitled to receive cash payments of up to $25 million upon
    achievement of development milestones.
  *Grifols is responsible for all commercialization activities and will pay
    Aradigm tiered royalties on worldwide sales of products utilizing
    Aradigm’s proprietary inhaled ciprofloxacin formulations.
  *Grifols will be granted an option to license Aradigm’s AERx^® pulmonary
    drug delivery platform for use with another molecule.
  *In conjunction with the licensing agreement, Grifols will (upon receipt of
    Aradigm shareholders’ approval) acquire 35% of Aradigm’s common stock on a
    fully diluted basis at a price per share of $0.124 for a total investment
    of approximately $26 million.
  *Existing Aradigm shareholders, including Tavistock Life Sciences Company
    and accounts managed by First Eagle Investment Management, LLC, and new
    investors Great Point Partners, LLC will co-invest in the stock purchase
    transaction and purchase an additional approximately $15.4 million in
    Aradigm common stock.

The transaction is subject to certain closing conditions and is expected to
close in the second half of 2013. At that point, Grifols will be entitled to
designate two directors to serve on the Aradigm Board of Directors.

“Pulmaquin will complement Grifols existing Prolastin-C business. There is
significant overlap between Bronchiectasis and Alpha1 physicians and
patients,“ said Ramon Riera, President Global Commercial. When launched,
Grifols will leverage its existing Pulmonary sales team to commercialize

“Grifols is a great fit for us with their global reach of respiratory
physicians treating a number of conditions that could benefit from Pulmaquin.”
said Igor Gonda, President and CEO, Aradigm Corporation.

About inhaled ciprofloxacin (Pulmaquin and Lipoquin)

Ciprofloxacin is a widely prescribed antibiotic to treat infections of the
lung frequently experienced by cystic fibrosis (CF) and non-cystic fibrosis
bronchiectasis (BE) patients. It is often preferred because of its
broad-spectrum anti-bacterial action. The available oral and intravenous
formulations of the drug are used to treat episodes of acute exacerbations of
lung infections in CF patients. Aradigm’s once-a-day novel inhaled
formulations of ciprofloxacin are encapsulated in liposomes, allowing for a
sustained release of the drug within the lung and improving airway
tolerability. The formulations are to be used for chronic maintenance therapy
as they achieve much higher antibiotic concentration at the site of infection
and relatively low systemic antibiotic concentrations to minimize
side-effects. Lipoquin is a liposomal formulation of ciprofloxacin. Pulmaquin
is a dual release formulation that is a mixture of Lipoquin with
unencapsulated ciprofloxacin.

Pulmaquin has been tested extensively in preclinical tests, as well as in the
ORBIT-2 Phase 2b bronchiectasis study in which outstanding antimicrobial
activity coupled with good safety and tolerability was found, and, most
importantly, the positive impact on prevention of exacerbations compared to
placebo was also observed. Pulmaquin is ready to begin Phase 3 clinical
trials. Aradigm has been granted orphan drug designation for liposomal
ciprofloxacin for cystic fibrosis in the U.S. and the E.U., and for the
combination of liposomal ciprofloxacin and free ciprofloxacin for BE in the
U.S. Aradigm’s inhaled ciprofloxacin has been also successfully tested in
animal models of the bioterrorism infections inhalational tularemia, pneumonic
plague and Q-fever.

About Grifols

Grifols is a global healthcare company with a 70-year legacy of improving
people’s health and well being through the development of life-saving plasma
medicines, hospital pharmacy products and diagnostic technology for clinical

As a leading producer of plasma medicines, Grifols has a presence in more than
100 countries and is the world leader in plasma collection, with 150 plasma
donation centers across the U.S. Grifols is committed to increasing patient
access to its life-saving plasma medicines through significant manufacturing
expansions and the development of new therapeutic applications of plasma
proteins. The company is headquartered in Barcelona, Spain and employs more
than 12,000 people worldwide.

Grifols is the Global leader in the treatment of Alpha-1 antitrypsin
deficiency – a disease that often leads to emphysema. Grifols has a dedicated
Pulmonary sales force in the United States, Germany, Canada and Spain with
full coverage of COPD prescribers.

In 2012, Grifols’ sales exceeded 2,620 million euros. The company’s class A
shares are listed on the Spanish Stock Exchange, where they are part of the
Ibex-35 (MCE:GRF). Its non-voting class B shares are listed on the Mercado
Continuo (MCE:GRF.P) and on the U.S. NASDAQ via ADRs (NASDAQ: GRFS). For more
information visit

About Aradigm

Aradigm is an emerging specialty pharmaceutical company focused on the
development and commercialization of drugs delivered by inhalation for the
prevention and treatment of severe respiratory diseases. Aradigm has product
candidates addressing the treatment of bronchiectasis, cystic fibrosis,
inhalation tularemia and anthrax infections, and prevention of respiratory and
other diseases in tobacco smokers through smoking cessation.

More information about Aradigm can be found at

Disclaimer and Forward-Looking Statements

The facts and figures contained in this news release which do not refer to
historical data are “projections and forward-looking statements’”. The words
and expressions like “believe”, “hope” “anticipate”, “predict”, “expect”,
“intend”, “should”, “try to achieve”, “estimate”, “future” and similar
expressions, insofar as they are related to Aradigm, Grifols, the prospects
for Aradigm’s inhaled ciprofloxacin product formulations to successfully
complete clinical trials and to result in approved products, and the ability
of Grifols to successfully commercialize these products, are used to identify
projections and forward-looking statements. These expressions with respect to
Aradigm reflect the assumptions, hypothesis, expectations and anticipations of
the management team of Aradigm at the date of preparation of this news
release, which are subject to a number of factors that could make the real
results differ considerably, such as the uncertainties associated with
clinical trials including lack of effectiveness, lack of statistical
significance of results, adverse side effects or other safety issues,
uncertainties regarding the process of obtaining regulatory approval for the
sale of new drugs, uncertainties concerning the development of demand for new
products, uncertainties regarding the level of reimbursement for new products,
manufacturing and supply issues and the like. The future results of Grifols
Group could be affected by events related to its own activity, such as
shortages of raw materials for the manufacture of its products, the launch of
competitive products or changes in the regulations of markets in which it
operates, among others. At the date of the preparation of this news release
Grifols Group has adopted measures it considers necessary to offset the
possible effects of these events. Grifols, S.A. does not assume any obligation
to publicly inform, review or update any projections and forward-looking
statements to adapt them to facts or circumstances following the preparation
of this news release, except as specifically required by law.

Except for the historical information contained herein, this news release
contains forward-looking statements that involve risk and uncertainties,
including the closing of the transaction, as well as the other risks detailed
from time to time in Aradigm's filings with the Securities and Exchange
Commission (SEC), including its Annual Report on Form 10-K for the year ended
December 31, 2012 filed with the SEC on March 27, 2013, and Aradigm’s
Quarterly Reports on Form 10-Q.

Aradigm, Pulmaquin, Lipoquin, AERx and the Aradigm Logo are registered
trademarks of Aradigm Corporation.

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Nancy Pecota, 510-265-8800
Chief Financial Officer
Punkaj Amin, 919-316-6664
North American Corporate Communications
Raquel Lumbreras, +34 91 311 92 89
Global Press Office
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