EXHIBIT
  3.7


# CERTIFICATE OF AMENDMENT OF
AMENDED AND RESTATED ARTICLES OF INCORPORATION OFARADIGM CORPORATION

The
undersigned certify that:

1.
  They are the Chief Executive Officer and Chief Financial Officer, respectively,
  of Aradigm Corporation, a California corporation.

2.
  Article III of the Amended and Restated Articles of Incorporation (the Articles
  of Incorporation) of this corporation is amended to read in full as follows:

| | This
corporation is authorized to issue two classes of stock          to be designated,
respectively, Common Stock and Preferred Stock.          The total number of shares
that the corporation is authorized to issue          is One Hundred Fifty-Five Million
(155,000,000) shares. One Hundred          Fifty Million (150,000,000) shares shall be
Common Stock. Five Million          (5,000,000) shares shall be Preferred Stock.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Preferred Stock may be issued from time to time in one or          more series. The Board
of Directors is hereby authorized to determine          and alter the rights,
preferences, privileges and restrictions granted          to or imposed upon any wholly
unissued series of Preferred Stock, and          to fix the number of shares of any such
series of Preferred Stock and          the designation of any such series of Preferred
Stock. The Board of          Directors within the limits and restrictions stated in any
resolution          or resolutions of the Board of Directors originally fixing the number
         of shares constituting any series, may increase or decrease (but not
         below the number of shares of such series then outstanding) the number
         of shares of any series subsequent to the issuance of shares of that
         series.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.
  The foregoing amendment of the Articles of Incorporation has been duly approved
  by the Board of Directors.

4.
  The foregoing amendment of the Articles of Incorporation has been duly approved
  by the required vote of shareholders in accordance with Section 902 of the California
  Corporations Code. The total number of outstanding shares of the corporation
  is 63,036,410 shares of Common Stock and 1,544,626 shares of Series A Convertible
  Preferred Stock. The number of shares voting in favor of the amendment equaled
  or exceeded the vote required. The percentage vote required was more than 50%
  of the outstanding shares of Common Stock as a class and more than 50% of the
  outstanding shares of Common Stock and Series A Preferred Stock voting together.



| |  | 
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We
further declare under penalty of perjury under the laws of the State of California that
the matters set forth in this certificate are true and correct of our own knowledge.

Date:  June 10, 2004

| |  | /s/ RICHARD
      P. THOMPSON
      Richard P. Thompson
      Chief Executive Officer  
| |  | ---------------------------------------------------------------------------------------
| |  |                                                                                        
| |  | /s/ THOMAS
      C. CHESTERMAN
      Thomas C. Chesterman
      Chief Financial Officer