Novartis signs $5.7 bn licensing deal with Monte Rosa Therapeutics

Swiss drugmaker Novartis and drug developer Monte Rosa Therapeutics signed a licensing deal worth up to $5.7 billion on Monday to develop drugs for immune-mediated diseases. 

Under the agreement, Monte Rosa will receive an upfront payment of $120 million and could earn milestone payments and royalties that lift the total value to as much as $5.7 billion. 

Shares of Monte Rosa surged 65% in premarket trading after the announcement. 

Immune-mediated diseases occur when the immune system mistakenly attacks healthy tissues, causing inflammation and damage. These hard-to-treat conditions significantly impact patients' quality of life. 

The deal grants Novartis exclusive rights to an undisclosed drug-discovery target and options to license two additional programmes from Monte Rosa's early-stage immunology portfolio. 

 

Monte Rosa Therapeutics will utilize its AI-enabled platform to discover and develop new degraders - small molecules designed to break down disease-causing proteins - which Novartis will then take forward into clinical development and commercialization.

This collaboration marks the second between the two companies, following a deal last year for MRT-6160, a drug currently in early-stage trials for autoimmune and inflammatory conditions. 

The agreement is Novartis' second major deal this month, after an up-to-$5.2 billion tie-up with China's Argo Biopharmaceutical for experimental heart drugs.