DiMarchi is the inventor of Lilly's insulin analogue Lispro (marketed as Humalog), covered by patent US 5,514,646. Insulin molecules tend to form stable hexamers in solution, leading to a delay between injection or inhalation and therapeutic effect. Slight structural modifications in Lispro result in less self-association and more rapid therapeutic onset. The '477 patent issued to Aradigm covers the use of monomeric insulin as a means for improving the bioavailability of inhaled insulin.

Lilly claimed that Aradigm improperly appropriated information about the advantages of pulmonary delivery of Lispro from Lilly and incorrectly claimed the invention in the '477 patent exclusively as their own. In 1995 and 1996, the two companies held four meetings to discuss a possible collaboration that would take advantage of the expertise of both companies. Lilly insists that its scientists showed Aradigm the specific advantages expected from using Lispro instead of regular insulin in an aerosol device.

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