Cohance Lifesciences is significantly expanding its antibody-drug conjugate (ADC) capabilities through strategic investments totaling $18 million across two key companies. The company will invest $13 million to increase its ownership in NJ Bio to 67.3% from 56% by acquiring the entire holdings of Priyashri Nayak and the Jain Family Irrevocable Trust, while retaining 32.7% ownership for Dr Naresh Jain. Additionally, Cohance will invest $5 million in Aruka Bio, a private biotechnology company developing next-generation ADCs, bringing its total ownership to 65% while NJ Bio holds 25% and Jain retains 10%. Both transactions are expected to close by the end of September 2026, subject to definitive agreements, applicable approvals and customary closing conditions.
The strategic reorganization separates Cohance's ADC strategy into distinct business units with clear operational focus. NJ Bio will concentrate on providing contract research, development and manufacturing services with expertise in payload-linkers and bioconjugation technologies, while Aruka Bio will focus on developing its own experimental drugs with its lead programme still at preclinical stage. Cohance plans to integrate NJ Bio's capabilities more closely with its own manufacturing operations, allowing the company to offer pharmaceutical and biotechnology customers services ranging from early-stage development through commercial manufacturing. Following the transaction, Aruka will become a direct subsidiary of Cohance, giving the company control of Aruka's proprietary ADC platform for potential co-development, licensing and partnerships with pharmaceutical companies. The integration is expected to strengthen business performance across the combined platform over time.
Antibody-drug conjugates (ADCs) are emerging as a critical segment within the global drug development pipeline, with Indian CDMO companies positioning themselves strategically across different value chains. According to reports from The Financial Express, Piramal Pharma, Anthem Biosciences and Cohance Lifesciences are among the listed Indian companies with disclosed ADC-related capabilities, each taking distinct approaches to capture this high-margin opportunity. The CRDMO segment typically carries materially higher margins than other pharma activities, with Jefferies reporting 19% YoY revenue growth in Q1 FY27 across nine CRDMO companies, while aggregate EBITDA grew 36%. Recent developments highlight the competitive landscape, with Andera Partners investing in Tupolis, a Munich-based ADC company, demonstrating continued institutional interest in the sector despite unclear early science, betting on strong teams and broad networks.
The latest strategic investments reflect Cohance's commitment to strengthening its ADC capabilities amid challenging market conditions. Cohance shares closed 0.16% higher at ₹459.05 on the NSE on September 3, indicating positive market response to the strategic expansion. The company's previous financial performance shows Q1 FY27 revenue of ₹422.26 crore with -23.1% YoY decline, while Anthem Biosciences generated ₹418.22 crore revenue with -22.6% YoY decline. Anthem maintains the highest EBITDA margin at 39.6% compared to Piramal's 12.5% consolidated margin and Cohance's 2.2% adjusted margin, with Anthem's market capitalisation standing at ₹50,380 crore and a P/E ratio of 87.68x. The strategic reorganization aims to create clear business focus while leveraging Cohance's established CRDMO platform with more than 100 early-stage programmes and 10 late-phase molecules.
