Monte Rosa Therapeutics Shares Soar on Drug Partnership with Novartis
By Adriano Marchese
Shares of Monte Rosa Therapeutics jumped in premarket trading Monday after it said it will partner with Swiss pharmaceutical company Novartis to develop a degrader-based drug to treat immune-mediated diseases.
Shares jumped 61% ahead of the morning bell to $7.74.
The clinical-stage biotechnology company said it has signed the agreement to collaborate with Novartis to develop novel degraders for immune-mediated diseases. The new partnership looks to accelerate the development of these new drugs using Monte Rosa's proprietary artificial intelligence and machine-learning-driven QuEEN product engine for the discovery and development of degraders to be further developed and commercialized by Novartis.
Molecular glue degrader-based medicines, or MGD, are a type of cutting-edge class of drugs designed to eliminate disease-causing proteins by hijacking the cell's natural protein disposal system. MGDs are currently used to fight cancer and autoimmune diseases, among others.
Under the terms of the agreement, Monte Rosa will receive an upfront payment of $120 million, but can scale to a total deal value of up to $5.7 billion, which would include reaching certain milestones and receiving royalties on global net sales in the high single to low double-digit range.
The agreement is the second with between the two companies, in addition to the global exclusive license agreement for Monte Rosa's VAV1 degraders, including MRT-6160, announced in October 2024.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
September 15, 2025 08:07 ET (12:07 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
3 Stocks to Sell and 3 Stocks to Buy for October
The 10 Best Companies to Invest in Now
3 Stocks to Invest In With More Room to Run
14 Elite Funds and ETFs, and 5 Popular Funds That Just Missed the Mark
United States