Aradigm and Novo Nordisk entered into a worldwide agreement to develop pulmonary insulin delivery system for administering insulin by inhalation, which is expected to enter phase II clinical trials. The parties will also evaluate the system for the delivery of other compounds to regulate blood glucose levels. In addition, the agreement provides Novo Nordisk with an option to develop the technology for delivery of other compounds in two undisclosed therapeutic areas outside diabetes. Novo Nordisk holds the exclusive rights to worldwide marketing of any products resulting from the development programs. The joint development and licensing program is based on Aradigm's AERx® pulmonary drug delivery system. The analyst states that the status of Aradigm is improved due to this agreement and the company has placed itself in the prime position for a take over and has put a great pressure on itself for the success of its remaining projects.