Taiho spends $400 million with a Swiss partner to “turbocharge” three ADCs to the clinic

Taiho Pharmaceutical has paid Otsuka $400 million in upfront purchase of the Araris Biotech ADC linker platform in Switzerland.
Araris collaborated with Taiho Pharmaceutical after November 2023 by agreeing to develop antibody-drug conjugates using its AraLinQ platform for Taiho’s chosen targets. Taiho became impressed with the deal terms because the pharmaceutical giant made a complete buyout of Araris.
According to the official release, Taiho paid $400 million to acquire Araris Biotech, while its shareholders could receive up to $740 million through performance-based bonus increments.
The company Araris originated from the Paul-Scherrer-Institute in Switzerland before becoming an independent entity in 2019. The biotech specializes in creating ADCs with better linker solubility and expects three preclinical therapies for hematological and solid tumors to start human trials in 2025 and 2026.

Among its competing ADC linkers Araris promotes three principal advantages. The site of antibody IgG-Fc framework attachment permits ADCs to keep performing at similar levels when joined to the antibody.
The extent of the chemical bond that links the linker antibody with the therapy payload establishes “exceptional stability while circulating in blood plasma which safeguards normal tissue from damage,” the release explains. The linkage connecting the antibody to the therapy shows rapid decomposition patterns when exposed to cancer cells.
The ADC technology developed by Araris represents a transformative advancement within the field because it enables directed multiple-action payload delivery systems to tumors without causing significant toxicity levels CEO Dragan Grabulovski observed. Araris Pharmaceuticals has maintained pride in its partnership with Taiho Pharmaceutical since November 2023 because this collaboration bolsters our pace in advancing powerful ADC medication candidates for both solid tumors and hematological malignancies.

Japan’s Otsuka company operates Taiho as its subsidiary which develops and markets anticancer drugs throughout the country. The subsidiary in the U.S. has three FDA-approved pharmaceutical products which include Lonsurf for colorectal treatment and the bile duct cancer med Lytgobi and Inqovi for myelodysplastic syndromes treatment.
The merging of ADC technology from Araris with Taiho’s Cysteinomix small-molecule platform will enable Taiho to “further extend its ongoing oncology drug development program” per this morning’s statement.