Chugai teams up with Swiss ADC biotech Araris

Chugai, a pharmaceutical company from Japan and a subsidiary of Roche, has entered into a collaboration with Araris Biotech, a small Swiss biotech firm, to develop innovative antibody-drug conjugates (ADCs). These next-generation ADCs are designed to carry multiple cytotoxic agents, enhancing their potential effectiveness in cancer treatment. While the financial specifics of the initial agreement remain undisclosed, Chugai has committed to funding the research activities conducted by Araris Biotech. Additionally, the collaboration could result in a substantial payout of up to $780 million if Chugai decides to exercise its licensing option with Araris.

The unique technology developed by Araris allows for the attachment of more than one cytotoxic payload to an antibody, a significant advancement in the field of ADCs. According to Dragan Grabulovski, CEO and co-founder of Araris Biotech, this approach aims to replicate the effects of traditional chemotherapy more closely. In contrast, most existing ADCs can only attach a single cytotoxic payload to an antibody. This technological breakthrough is setting Araris apart from its competitors and attracting attention within the industry. On the same day, other companies like Biocytogen and Acepodia announced their own dual-payload ADC collaborations, highlighting the growing interest in this therapeutic approach.

ADCs have emerged as a prominent and innovative treatment option in oncology, often referred to as "fancy chemotherapy" by some clinicians. Large pharmaceutical companies, including Roche, have been actively pursuing partnerships and acquisitions in the ADC space as these treatments gain regulatory approval and traction in the market.

Araris Biotech has successfully secured around $45 million in funding to date, with a notable investment from Samsung Ventures in 2023. Other investors supporting Araris include 4BIO, b2venture, Pureos Bioventures, Redalpine, Schroders Capital, VI Partners, Wille AG, and the Institute for Follicular Lymphoma Innovation. Looking ahead, Araris is planning to initiate a Series B financing round within the first half of the year to advance its internal pipeline to clinical stages. However, the specific target amount for this funding round has not been disclosed.

Interestingly, nearly a dozen other ADC-focused biotech companies raised significant funding rounds last year, underscoring the increasing interest and investment in this field.

Araris Biotech's leading ADC candidate targets Nectin-4 and is intended for the treatment of various cancers, including those of the bladder, breast, lung, and head and neck. Unlike other players in the Nectin-4 space, such as the FDA-approved Padcev, Araris's candidate is distinct due to its incorporation of three different cytotoxic payloads. The company is planning to file an Investigational New Drug (IND) application for this candidate within the next nine to twelve months.

The biotech's second ADC candidate is aimed at targeting NaPi2b for the treatment of ovarian and lung cancers. The timeline for filing the IND for this candidate is projected to be approximately 15 months from now. Araris Biotech, which currently employs 15 people, is making significant strides in advancing its ADC technology and positioning itself as a leader in this cutting-edge therapeutic area.