Taiho to Acquire Araris in $1.14B Deal to Bolster Next-Gen ADC Pipeline
In a significant move to expand its oncology portfolio, Taiho Pharmaceutical Co., Ltd. has entered a definitive agreement to fully acquire Araris Biotech AG, a Swiss biotechnology company specialising in next-generation antibody-drug conjugates (ADCs). Announced by the companies yesterday the deal, valued at up to USD 1.14 billion, includes an upfront payment of USD 400 million and potential milestone payments of up to USD 740 million. The acquisition is expected to be finalised in the first half of 2025, following a research collaboration between the two companies that began in November 2023.
A Strategic Move to Enhance ADC Capabilities
Araris, a spin-off from the Paul Scherrer Institute in Switzerland, has been at the forefront of ADC innovation with its proprietary AraLinQ™ linker technology. This platform addresses key limitations of current-generation ADCs by offering superior design, high linker solubility, and simplified manufacturing processes. ADCs are a class of targeted cancer therapies that use antibodies to deliver cytotoxic drugs (payloads) directly to cancer cells, minimising damage to healthy tissues.
The AraLinQ™ platform enables site-specific payload attachment to a unique amino acid (Q295) within the antibody’s IgG-Fc framework. This results in highly uniform, stable, and potent ADC candidates that have demonstrated a wider therapeutic window and increased antitumor efficacy in preclinical studies. Araris is currently advancing three ADC candidates for haematological and solid tumours, which are expected to enter clinical trials between 2025 and 2026.
Taiho’s Vision: Expanding Oncology Innovation
Taiho Pharmaceutical, a subsidiary of Otsuka Holdings Co., Ltd., has long been recognised for its expertise in oncology, particularly in the development of antimetabolites and small molecule drugs through its proprietary Cysteinomix platform. The acquisition of Araris will complement Taiho’s existing capabilities, enabling the company to further diversify its oncology pipeline and accelerate the development of next-generation ADCs.
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.”
Araris’ Breakthrough Technology: A Quantum Leap in ADC Design
Araris’ AraLinQ™ technology represents a significant advancement in ADC design. The platform’s hydrophilic linkers improve solubility, reducing clumping and enhancing the ADC’s ability to bind to cancer cells without the need for further modifications to the antibody or payload structures. Additionally, the technology allows for the creation of ADCs with multiple payloads of different types, enabling simultaneous delivery of multiple mechanisms of action to the tumour.
Dragan Grabulovski, CEO and Co-founder of Araris emphasized the transformative potential of the technology:
“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 tumour, 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 haematological and solid tumours.”
A New Era of Targeted Cancer Therapy
The acquisition will see Araris become a wholly owned subsidiary of Taiho Pharmaceutical, with its operations and R&D activities continuing at its current location in Zurich, Switzerland. The deal underscores Taiho’s commitment to advancing innovative cancer therapies and addressing unmet medical needs in oncology.
Dima Kuzmin, Managing Partner of 4BIO Capital and Chairman of Araris, highlighted the strategic fit between the two companies:
“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.”
About AraLinQ™: Redefining ADC Development
AraLinQ™ is a game-changing linker technology that enables the attachment of payloads to a specific site on the antibody, ensuring exceptional stability in the bloodstream and minimizing off-target effects. Once the ADC enters a cancer cell, the linker is cleaved, releasing the payload to kill the cancer cell. This precision delivery system is key to maximizing ADC efficacy while reducing toxicity.
The technology also allows for the creation of ADCs in a single step using “off-the-shelf” antibodies, streamlining the manufacturing process and reducing costs. This scalability is a significant advantage for the development and commercialization of ADCs.
Advisors and Next Steps
MTS Health Partners, L.P. served as the financial advisor to Taiho Pharmaceutical, with Wilson Sonsini Goodrich & Rosati PC and Homburger AG providing legal counsel. Centerview Partners UK LLP acted as the financial advisor to Araris, with Cooley LLP and BGPartner Ltd. serving as legal advisors. With the acquisition, Taiho Pharmaceutical is poised to strengthen its position as a leader in oncology innovation, leveraging Araris’ cutting-edge ADC technology to develop transformative cancer therapies for patients worldwide.
About Araris Biotech AG
Araris Biotech is a pioneer in the field of antibody-drug conjugates (ADCs), redefining the paradigm of targeted cancer therapy. Founded as a spin-off from the Paul Scherrer Institute, the company’s proprietary AraLinQ™ technology enables the transformation of any antibody into an ADC with enhanced safety and efficacy. Araris’ investors include 4BIO Capital, b2venture, Pureos Bioventures, Redalpine, Schroders Capital, VI Partners, Wille AG, Institute for Follicular Lymphoma Innovation, and Samsung Ventures.
About Taiho Pharmaceutical Co., Ltd.
Taiho Pharmaceutical, a subsidiary of Otsuka Holdings Co., Ltd., is an R&D-driven specialty pharma company focused on oncology and immune-related diseases. The company is committed to improving human health and contributing to a society enriched by smiles. Taiho is known for its innovative cancer treatments and extensive global R&D efforts, aiming to address unmet medical needs and improve patients’ quality of life.
For more information, visit:
- Araris Biotech: www.ararisbiotech.com
- Taiho Pharmaceutical: https://www.taiho.co.jp/en/
Original Source – Press Release – March 17th, 2025 Taiho Pharmaceutical Co., Ltd. Araris Biotech AG – Taiho Pharmaceutical to Acquire Next-Generation ADC Drug Discovery Company Araris Biotech
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