Cohance Lifesciences Invests $18M in NJ Bio and Aruka Bio to Advance ADC Strategy
Cohance Lifesciences will invest USD 13 million (₹108.5 crore) in NJ Bio and USD 5 million (₹41.75 crore) in Aruka Bio to advance its ADC strategy. Ownership in NJ Bio will increase to 67.3%. Aruka Bio will become a direct subsidiary, owned 65% by Cohance. Transactions are expected to complete by September 2026.
The investments and acquisitions are significant for Cohance's ADC strategy and involve substantial capital, but they are focused on specific business units and may not have an immediate, broad impact on overall financial performance.
The announcement details strategic investments and acquisitions aimed at strengthening the company's ADC strategy, which is a positive development for future growth.
Cohance Lifesciences Limited announced two strategic transactions to bolster its Antibody-drug Conjugate (ADC) strategy. The company plans an additional investment of USD 13 million (₹108.5 crore) in NJ Bio and a controlling investment of USD 5 million (₹41.75 crore) in Aruka Bio, with both funded through internal accruals.
Cohance will increase its ownership in NJ Bio from 56.0% to 67.3% by acquiring shares from Ms. Priyashree Nayak and the Jain Family Irrevocable Trust. Dr. Jain will continue to lead NJ Bio while also advancing Aruka's pipeline. NJ Bio will focus on customer-facing contract research, development, and manufacturing services, integrating its expertise with Cohance's manufacturing capabilities for end-to-end CRDMO support.
Aruka Bio, a biotechnology company focused on next-generation ADCs, will become a direct subsidiary of Cohance. Cohance's USD 5 million investment will fund the buyout of other shareholders and convertible noteholders, as well as working capital. Post-investment and Dr. Jain's equity grant, Aruka will be owned 65% by Cohance, 25% by NJ Bio, and 10% by Dr. Jain. This move consolidates control over Aruka's proprietary ADC platform, positioning it for co-development, licensing, and collaborations.
These transactions follow a review of NJ Bio's performance and integration since December 2024, aiming to strengthen commercial alignment and provide dedicated leadership for Aruka's pipeline. Completion of these transactions is expected by the end of September 2026, subject to definitive agreements and customary closing conditions.
Dr. Naresh Jain, Founder and CEO of NJ Bio, will work across both businesses, supporting NJ Bio's growth and an orderly leadership handover, while also advancing Aruka's pipeline. Umang Vohra, Executive Chairman and Group CEO of Cohance Lifesciences, stated that this reorganization provides clear focus for each business, strengthening NJ Bio's customer offering and enabling Dr. Jain to lead Aruka's next phase, which is expected to enhance business performance across the combined platform.
A plain-language summary of a public exchange filing by Cohance Lifesciences Limited. Read the original for the full detail.