<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
INFORMATION STATEMENT PURSUANT TO RULE 13D-1 AND 13D-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934
ARADIGM CORPORATION
(Name of Issuer)
COMMON STOCK, NO PAR VALUE PER SHARE
(Title of Class of Securities)
038505-10-3
(CUSIP Number of Class of Securities)
Check the following box if a fee is being paid with this statement. [ ]
(A fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of less than five percent of
such class.) (See Rule 13d-7.)
Page 1 of 11 Pages
An Index of Exhibits appears on Page 11
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CUSIP NO.
038505-10-3 SCHEDULE 13G PAGE 2 OF 11 PAGES
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
FRAZIER HEALTHCARE II, L.P. FEIN: 91-1689734
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Organized under the laws of the State of Delaware
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(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 636,363
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 0
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
636,363
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
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(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
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(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.23%
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(12) TYPE OF REPORTING PERSON*
LP
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 11 Pages
An Index of Exhibits appears on Page 11
<PAGE> 3
CUSIP NO.
038505-10-3 SCHEDULE 13G PAGE 3 OF 11 PAGES
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
FHM II, L.L.C. FEIN: 91-1689731
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Organized under the laws of the State of Delaware
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(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 636,363
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 0
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
636,363
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
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(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
---------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.23%
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(12) TYPE OF REPORTING PERSON*
LLC
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 3 of 11 Pages
An Index of Exhibits appears on Page 11
<PAGE> 4
CUSIP NO.
038505-10-3 SCHEDULE 13G PAGE 4 OF 11 PAGES
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
FRAZIER MANAGEMENT, L.L.C. FEIN: 91-1678546
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Organized under the laws of the State of Delaware
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(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 636,363
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 0
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
636,363
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
636,363
---------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
---------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.23%
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(12) TYPE OF REPORTING PERSON*
LLC
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 4 of 11 Pages
An Index of Exhibits appears on Page 11
<PAGE> 5
CUSIP NO.
038505-10-3 SCHEDULE 13G PAGE 5 OF 11 PAGES
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
FRAZIER & COMPANY, INC. FEIN: 91-1526760
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Organized under the laws of the State of Washington
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(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 636,363
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 0
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
636,363
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
636,363
---------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
---------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.23%
---------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 5 of 11 Pages
An Index of Exhibits appears on Page 11
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CUSIP NO.
038505-10-3 SCHEDULE 13G PAGE 6 OF 11 PAGES
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ALAN D. FRAZIER SS####-##-####
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States Citizen
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(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 636,363
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 0
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
636,363
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
636,363
---------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
---------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.23%
---------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON*
IN
---------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 6 of 11 Pages
An Index of Exhibits appears on Page 11
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AMENDMENTS TO SCHEDULE 13G
ITEM 1(A). NAME OF ISSUER.
This Schedule 13G relates to Aradigm Corporation, a California
corporation (the "Company").
ITEM 1(B). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
The Company's principal executive offices are located at 26219 Eden
Landing Road, Hayward, CA 94545.
ITEM 2(A). NAME OF PERSONS FILING.
This Schedule 13G relates to each of the following persons:
- Frazier Healthcare II, L.P., a limited partnership ("FHII")
- FHM II, L.L.C., a limited partnership ("FHMII")
- Frazier Management, L.L.C., a limited liability company ("FMLLC")
- Frazier & Company, Inc., a Washington corporation ("F&C Inc.")
- Alan D. Frazier, as a director and sole shareholder of F&C Inc.;
and
The general partner of FHII is FHMII, whose managing member is FMLLC.
The managing member of FMLLC is F&C Inc. The sole shareholder of F&C Inc. is
Alan D. Frazier.
ITEM 2(B). ADDRESS OF PRINCIPAL BUSINESS OFFICE.
The business address of each of the reporting persons is 601 Union
Street, Suite 2110, Seattle, Washington 98101.
ITEM 2(C). CITIZENSHIP.
FHII is a limited partnership organized under the laws of the State of
Delaware. FHMII and FMLLC are limited liability companies organized under the
laws of the State of Delaware. F&C Inc.is a corporation organized under the laws
of the State of Washington. Mr. Frazier is a United States citizen.
ITEM 2(D). TITLE OF CLASS OF SECURITIES.
This Schedule 13G relates to the Company's common stock, no par value
per share (the "Common Stock").
Page 7 of 11 Pages
An Index of Exhibits appears on Page 11
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ITEM 2(E). CUSIP NUMBER.
The CUSIP Number for the Company's Common Stock is 038505-10-3.
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(B) OR 13D-2(B),
CHECK WHETHER THE PERSON FILING IS A:
(a) [ ] Broker or dealer registered under Section 15 of the
Act,
(b) [ ] Bank as defined in Section 3(a)(6) of the Act,
(c) [ ] Insurance Company as defined in Section 3(a)(19) of
the Act,
(d) [ ] Investment Company registered under Section 8 of the Investment
Company Act,
(e) [ ] Investment Advisor registered under Section 203 of the Investment
Advisors Act of 1940,
(f) [ ] Employee Benefit Plan, Pension Fund which is subject to the
provisions of the Employee Retirement Income Security Act of 1974
or Endowment Fund,
(g) [ ] Parent Holding Company, in accordance with Rule 13d-1(b)(ii)(G),
(h) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(H).
NOT APPLICABLE.
ITEM 4. OWNERSHIP.
The following describes the ownership of Common Stock by FHII, FHMII,
FMLLC, F&C Inc. and Mr. Alan D. Frazier as of December 31, 1996:
(a) Amount beneficially owned: 636,363 (1)
(b) Percent of class: 6.23%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: 0
(ii) Shared power to vote or to direct the vote: 636,363 (1)(2)
(iii) Sole power to dispose or to direct the disposition of: 0
(iv) Shared power to dispose or to direct the disposition of:
636,363 (1)
Page 8 of 11 Pages
An Index of Exhibits appears on Page 11
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(1) Represent shares of Common Stock held of record by FHII of which
FHMII is the general partner. FMLLC is the managing member of
FHMII and F&C Inc. is the managing member of FMLLC. Mr. Frazier
is the sole shareholder of F&C Inc.
(2) Power to vote or to direct the vote of, and power to dispose or
to direct the disposition of, the reported shares is deemed to be
shared among each of FHII, FHMII, FMLLC, F&C Inc. and Mr.
Frazier. Each of such persons denies beneficial ownership of such
shares except to the extent of such person's respective pecuniary
interest.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not applicable.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Not applicable.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable.
ITEM 10. CERTIFICATION.
Not applicable.
Page 9 of 11 Pages
An Index of Exhibits appears on Page 11
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SIGNATURE
The undersigned hereby agree that this Schedule is filed on behalf of
each of them and, after reasonable inquiry and to best of their knowledge and
belief, hereby certify that the information set forth in this statement is true,
complete and correct.
Dated: February 5, 1997
FRAZIER HEALTHCARE II, L.P.
By: FHM II, L.L.C.
Its General Partner
By: Frazier Management, L.L.C.
Its Managing Member
By: Frazier & Company, Inc.
Its Managing Member
By /s/ Alan D. Frazier
-------------------------------
Alan D. Frazier, President
FRAZIER MANAGEMENT, L.L.C.
By: Frazier & Company, Inc.
Its Managing Member
By /s/ Alan D. Frazier
-------------------------------
Alan D. Frazier, President
FRAZIER & COMPANY, INC.
By /s/ Alan D. Frazier
-------------------------------
Alan D. Frazier, President,
Director and Shareholder
Page 10 of 11 Pages
An Index of Exhibits appears on Page 11
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EXHIBIT INDEX
Statement required by reporting persons pursuant to Rule
13d-1(f)(1) (see signature page).
Page 11 of 11 Pages
An Index of Exhibits appears on Page 11
