Cohance Lifesciences to Invest USD 18 Mn in NJ Bio, Aruka Bio to Strengthen ADC Strategy

Both transactions will be funded through internal accruals. The proposed reorganization is aimed at establishing distinct priorities for the two businesses, with deeper integration of NJ Bio’s customer-facing services with Cohance and focused development of Aruka Bio’s proprietary pipeline through potential partnerships.

Cohance will increase its common-equity ownership in NJ Bio from 56% to 67.3% by acquiring the entire holdings of Priyashri Nayak and the Jain Family Irrevocable Trust. Dr. Naresh Jain will retain a 32.7% stake.

Dr. Jain will continue to lead NJ Bio while also advancing Aruka’s pipeline and partnership initiatives. NJ Bio will remain focused on customer-facing contract research, development and manufacturing services.

The closer integration of NJ Bio with Cohance is expected to combine NJ Bio’s payload-linker and bioconjugation expertise with Cohance’s manufacturing capabilities, supporting customers across the CRDMO value chain from development through commercial supply.

Cohance to Take Controlling Stake in Aruka Bio

Aruka Bio, Inc. is a private biotechnology company based in Princeton, New Jersey, focused on developing next-generation ADCs. Its lead program is currently at the preclinical stage.

Cohance’s USD 5 million equity investment will fund the buyout of existing shareholders and convertible noteholders, along with working capital requirements.

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

Aruka will become a direct subsidiary of Cohance. The investment will consolidate Cohance’s control of Aruka’s proprietary ADC platform and position the company to pursue co-development, licensing and other collaborations with pharmaceutical and biotechnology partners as its pipeline progresses.

Reorganization of NJ Bio and Aruka

The proposed transactions follow a review of NJ Bio’s performance and integration with Cohance since its original investment in December 2024.

The review identified an opportunity to strengthen commercial alignment between the two businesses as NJ Bio expands its GMP CDMO services, while providing dedicated leadership focus to Aruka’s novel drug development pipeline.

Completion of the transactions is expected by the end of September 2026, subject to definitive agreements, applicable approvals and customary closing conditions.

Dr. Naresh Jain, Founder and CEO, NJ Bio, said, “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.”

Umang Vohra, Executive Chairman and Group CEO, Cohance Lifesciences, said, “This reorganisation gives each business a clear focus: strengthening NJ Bio’s customer offering through closer integration with Cohance and creating the opportunity for Dr Jain to lead Aruka’s next phase. This integration is expected to strengthen business performance across the combined platform over time.”

Cohance Lifesciences, formerly Suven Pharmaceuticals, is an innovator-focused global CRDMO formed through the merger of Cohance Life Sciences into Suven Pharmaceuticals.

Leveraging a combined platform with facilities in India and the US, Cohance provides integrated solutions spanning early development through commercial supply for global pharmaceutical companies.