Cohance Lifesciences Limited is stepping up its antibody-drug conjugate (ADC) strategy with two proposed transactions worth a combined $18 million, including a larger stake in NJ Bio and a controlling investment in Aruka Bio.

 

The company said that it plans to invest an additional $13 million in NJ Bio, taking its common-equity ownership from 56% to 67.3%. Separately, Cohance will invest $5 million in Princeton, New Jersey-based biotechnology company Aruka Bio, gaining control of the business.

 

The restructuring is designed to give the two businesses distinct roles within Cohance’s ADC strategy: NJ Bio will focus on customer-facing contract research, development and manufacturing services, while Aruka will concentrate on developing its proprietary ADC pipeline and pursuing partnerships.

 

As part of the NJ Bio transaction, Cohance will acquire the entire holdings of Priyashri Nayak and the Jain Family Irrevocable Trust. Naresh Jain will retain a 32.7% stake.

 

Jain, NJ Bio’s founder and CEO, will continue to lead the company through the transition while also driving Aruka’s pipeline and partnership efforts.

 

NJ Bio will remain focused on customer-facing CRDMO services, with Cohance planning closer integration of NJ Bio’s payload-linker and bioconjugation capabilities with its own manufacturing platform.

 

The combined offering is intended to support customers across the development chain, from early-stage CRDMO work through commercial supply.

 

The move follows a review of NJ Bio’s performance and integration with Cohance since its original investment in December 2024. The review identified an opportunity to improve commercial alignment as NJ Bio expands its GMP CDMO services, while giving Aruka dedicated leadership for its novel drug-development pipeline.

 

Cohance’s $5 million investment in Aruka will fund the buyout of existing shareholders and convertible noteholders, as well as working capital.

 

Following completion of the transaction and Jain’s upfront equity grant, Aruka will be owned 65% directly by Cohance, 25% by NJ Bio and 10% by Jain. These holdings are before any further dilution arising from Jain’s performance-linked equity award.

 

Aruka will become a direct subsidiary of Cohance, giving the group control of its proprietary ADC platform. Its lead programme is currently at the preclinical stage.

 

Cohance said the structure will allow Aruka to pursue co-development, licensing and other collaborations with pharmaceutical and biotechnology companies as its pipeline advances.

 

Jain will initially work across both businesses before moving his full-time focus to Aruka.

 

“I will work across both businesses—supporting NJ Bio’s growth and an orderly leadership handover, while working together with Cohance in advancing Aruka’s pipeline and exploring development partnerships. Thereafter, I will focus full-time on Aruka as CEO, while continuing to support NJ Bio as a strategic advisor.”

 

Cohance Executive Chairman and Group CEO Umang Vohra said the restructuring would sharpen the strategic focus of both businesses.

 

“This reorganisation gives each business a clear focus: strengthening NJ Bio’s customer offering through closer integration with Cohance and creating the opportunity for Jain to lead Aruka’s next phase. This integration is expected to strengthen business performance across the combined platform over time."