Taiho Pharmaceutical Expands ADC Capabilities with Araris Biotech Acquisition

• Taiho Pharmaceutical has entered into a definitive agreement to acquire Araris Biotech for an upfront payment of $400 million, with potential milestone payments of up to $740 million.

• The acquisition, expected to close in the first half of 2025, will enhance Taiho’s oncology portfolio by integrating Araris’ proprietary ADC technology platform, AraLinQ.

Taiho Pharmaceutical Co., Ltd. has announced a definitive agreement to acquire Araris Biotech AG, a Swiss biotechnology company specialising in next-generation antibody-drug conjugates (ADCs). The deal includes an upfront payment of $400 million, with potential milestone-based payments of up to $740 million. The acquisition is expected to be completed in the first half of 2025, following necessary regulatory approvals.

Araris, a spin-off from the Paul Scherrer Institute in Switzerland, is focused on developing best-in-class ADCs that offer improved linker solubility, simplified manufacturing, and enhanced therapeutic efficacy. At the core of its innovation is AraLinQ, a proprietary ADC linker platform that has demonstrated increased tumour-targeting capabilities and reduced toxicity in preclinical studies. Araris is currently advancing three ADC candidates for hematological and solid tumour treatments, with plans to enter clinical trials between 2025 and 2026.

The acquisition builds upon a research collaboration between Taiho and Araris initiated in November 2023. Taiho, known for its expertise in small-molecule oncology drugs, aims to integrate Araris’ ADC technology with its existing Cysteinomix drug discovery platform, further strengthening its oncology pipeline.

Masayuki Kobayashi, President and Representative Director of Taiho Pharmaceutical, stated: “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 will lead to further expansion and strengthening of Taiho’s drug discovery capabilities and portfolio.”

Upon completion of the acquisition, Araris will operate as a wholly owned subsidiary of Taiho, maintaining its research and development activities at its current headquarters in Zurich, Switzerland. The deal underscores Taiho’s strategic commitment to advancing ADC therapies and expanding its footprint in the global oncology market.