BUZZ-Aradigm Corp: Ladenburg Thalmann cuts rating to 'neutral'

** Drug developer's shares plunge 42.7 pct to $1.96 premarket - top pct loser among all U.S.-listed stocks

** Based on -ve Adcom vote on Thursday and resulting lack of clarity wrt regulatory pathway for Linhaliq, we're lowering our rating to "neutral" from "buy", removing PT - Ladenburg Thalmann

** An advisory committee to U.S. FDA voted 12-3 against co's drug, Linhaliq, as a treatment for non-cystic fibrosis bronchiectasis with a bacterial infection

** FDA usually takes recommendations into account when making a drug approval, but is not obligated to follow them

** We expect it is likely Aradigm will receive a complete response letter for Linhaliq by the Jan 26 action date set by the U.S. FDA - Ladenburg Thalmann

** Company's stock had risen more than four-fold in 2017 (Reporting by Akankshita Mukhopadhyay in Bengaluru)