Monte Rosa (GLUE.US) soared in pre-market trading! Reached a $5.7 billion licensing agreement with Novartis AG Sponsored ADR Pharmaceuticals (NVS.US).

On Monday, Swiss pharmaceutical company Novartis AG Sponsored ADR (NVS.US) signed a collaboration agreement worth up to $5.7 billion with drug development company Monte Rosa Therapeutics (GLUE.US) to jointly develop drugs for immune-mediated diseases. Under the agreement, Monte Rosa will receive a $120 million upfront payment, with the opportunity to earn additional revenue through milestone payments and sales royalties, totaling up to $5.7 billion. Boosted by this news, Monte Rosa's US stock price surged over 53% in pre-market trading on Monday. Immune-mediated diseases refer to conditions where the immune system mistakenly attacks healthy tissues, leading to inflammation and damage. These difficult-to-treat diseases can significantly impact patients' quality of life. The agreement grants Novartis AG Sponsored ADR exclusive rights to an undisclosed drug discovery target and the option to license two additional research projects from Monte Rosa's early immunology pipeline. Monte Rosa will use its AI-driven platform to discover and develop new degraders - small molecules specifically designed to degrade disease-causing proteins, which will then be advanced in clinical development and commercialized by Novartis AG Sponsored ADR. This collaboration marks the second partnership between the two companies. Last year, they reached an agreement on MRT-6160, a drug currently in early clinical trials for treating autoimmune and inflammatory diseases. This agreement is also the second major deal Novartis AG Sponsored ADR has made this month. Prior to this, the company had just signed a $5.2 billion collaboration agreement with Argo Biopharmaceutical for the development of experimental heart disease drugs.