Taiho Pharmaceutical has entered into a definitive agreement to acquire Swiss biotechnology company, Araris Biotech.
The Swiss company, which specialises in the development of next-gen antibody drug conjugates (ADCs), will significantly bolster Taiho Pharmaceutical's current oncology pipeline.
The acquisition is expected to close in the first half of 2025, and follows a research collaboration between the two, which was signed in November 2023.
Taiho Pharmaceutical will spend $400m on the acquisition, with Araris being eligible for additional milestone payments of up to $740m.
Araris, a spin-off company from the Paul-Scherrer Institute, is currently developing optimised ADCs with high linker solubility that are simple to manufacture.
To achieve this, Araris uses its ADC linker platform AralinQ, which creates uniform, stable and potent ADC candidates that are suitable for both haemotological and solid tumours.
A range of these candidates have demonstrated efficacy in preclinical studies, with the products likely entering clinical trials between 2025 and 2026.
“We are very pleased to have entered into this agreement with Araris," noted Masayuki Kobayashi, President and Representative Director of Taiho Pharmaceutical.
"AraLinQTM is an innovative technology that enables next-generation ADC drug discovery, and Araris' expertise in ADC drug discovery & development will help us to expand and strengthen our drug discovery capabilities and portfolio."
“Araris’ unique ADC technology represents a quantum leap for the ADC field, potentially offering precise payload delivery of multiple mechanisms of action simultaneously to the tumor, with less toxicity," added Dragan Grabulovski, CEO and Co-founder of Araris.
"We are proud to combine with Taiho, our partner since November 2023, whose significant cancer expertise will support us in turbo-charging the clinical development of our potent ADC candidates in hematological and solid tumors.”
Dima Kuzmin, Managing Partner of 4BIO Capital and Chairman of Araris, added: “This acquisition validates Araris’ position as one of the most exciting ADC companies in the market. Having worked with Araris closely during its collaboration, Taiho knows the potential of Araris’ proprietary AraLinQ technology and is best placed to accelerate these transformative treatments to patients.”
With the Acquisition, Araris will become a wholly owned subsidiary of Taiho Pharmaceutical and will continue its business, research and development activities at its current location in Zurich, Switzerland.