Monte Rosa stock rises after pact with Novartis

[Communication concept]

Shares of Monte Rosa Therapeutics (NASDAQ: NASDAQ:GLUE [https://seekingalpha.com/symbol/GLUE]) rose after it announced a new collaboration with Novartis (NYSE:NVS [https://seekingalpha.com/symbol/NVS]) to advance the development of molecular degraders for immune-mediated diseases.

This marks the second partnership between the two companies, following their October 2024 licensing deal for Monte Rosa’s VAV1 degraders, including MRT-6160.

As part of the deal, Monte Rosa will receive $120M upfront, along with additional payments to maintain its options.

The agreement could ultimately be worth up to $5.7B through milestones tied to preclinical, clinical, regulatory, and commercial progress. In addition, Monte Rosa is eligible for tiered royalties on global sales, ranging from high single digits to low double digits.

Under the agreement [https://seekingalpha.com/pr/20231524-monte-rosa-therapeutics-announces-collaboration-with-novartis-for-degraders-to-treat-immune], Monte Rosa will apply its AI- and ML-powered QuEEN product engine to design novel degraders, while Novartis will handle later-stage development and global commercialization.

GLUE stock is up about 38% so far today.

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