Taiho Pharmaceutical to acquire Araris Biotech for up to USD 1.1 billion

Araris is a spin-off company of the Paul-Scherrer-Institute in Switzerland and pioneering the development of best-in-class ADCs with superior design, high linker solubility and simple manufacturing that address the shortcomings of current generation ADCs. ADCs are designed to selectively deliver cytotoxic drugs (payloads) to cancer cells by attaching them to antibodies that bind specifically to cancer cells through linkers. Foundational to Araris’ approach is its novel, proprietary ADC linker platform AraLinQ. By enabling the attachment of multiple, synergistic cancer-fighting payloads to a single antibody in an efficient one-step process, Araris is creating a new generation of smart missiles that deliver the potency of combination chemotherapy in a targeted fashion in order to tackle the persistent challenges of cancer resistance. This platform has generated highly uniform, stable and potent ADC therapeutic candidates that have demonstrated a wider range of safety and increased antitumor effect compared to conventional ADCs in preclinical studies.

Clinical trials planned for 2025

The acquisition takes places ahead of first clinical trials. Araris is advancing three products for the treatment of hematological and solid tumors developed using its unique AraLinQ technology, which are currently in the preclinical stage. These products are anticipated to enter into clinical trials between 2025 and 2026. By acquiring Araris' innovative ADC drug discovery technology platform, Taiho Pharmaceutical will further expand its ongoing development portfolio in the field of oncology.

The acquisition follows a research collaboration between Taiho Pharmaceutical and Araris signed in November 2023. Masayuki Kobayashi, President and Representative Director of Taiho Pharmaceutical commented, “We are very pleased to have entered into this agreement with Araris. AraLinQ is an innovative technology that enables next-generation ADC drug discovery. We are confident that the addition of Araris' knowledge, experience and technology platform in ADC drug discovery, as well as its development pipeline, will lead to further expansion and strengthening of Taiho's drug discovery capabilities and portfolio. Going forward, together with Araris, we will strive to develop innovative drugs that can contribute to patients globally.”

Dragan Grabulovski, CEO and Co-founder of Araris commented, “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. 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. Following necessary procedures, the Acquisition is expected to be completed in first half of 2025.

Founded in 2019, Araris a spin-off company of the Paul-Scherrer-Institute (part of ETH domain) in Switzerland, with Dr. Philipp Spycher, Dr. Isabella Attinger-Toller and Dr. Dragan Grabulovski among its founders. Araris’ investors include 4BIO Capital, b2venture, Pureos Bioventures, Redalpine, Schroders Capital, VI Partners, Wille AG, Institute for Follicular Lymphoma Innovation and Samsung Ventures.

(Press release / SK)