Novartis and Monte Rosa first partnered in October 2024 for a molecular glue asset for immune-mediated and autoimmune diseases. This time, the pharma is putting $120 million down upfront for more of the biotech’s AI-discovered degraders.
Novartis has put $5.7 billion on the line to partner with Boston biotech Monte Rosa Therapeutics, the two companies announced Monday, marking their second molecular glue agreement.
Novartis will pay Monte Rosa $120 million upfront. In exchange, Monte Rosa will license to Novartis molecular glue degraders discovered using its AI/machine learning discovery engine. Novartis will develop and commercialize molecules discovered by Monte Rosa as part of the collaboration. The partners did not disclose what specific indications they will focus on, revealing only that the investigational degraders will be for “immune-mediated diseases.”
Novartis’ total $5.7 billion potential investment covers this upfront commitment plus preclinical, development, regulatory and sales milestones across all programs. The companies also baked in option maintenance and option exercise fees into this sum. Meanwhile, Monte Rosa will be eligible for tiered royalties on global net sales ranging from high-single to low-double digits.
Monday’s agreement comes nearly a year after Novartis first linked up with Monte Rosa, betting $2.2 billion in October last year—including a $150 million upfront payment—to advance MRT-6160, a molecular glue degrader targeting the VAV1 protein.
MRT-6160 is being tested for immune-mediated and autoimmune conditions and completed first-in-human testing in April this year. The biotech is currently working to advance the asset into Phase II testing, at which point it will be eligible to Novartis’ milestones. Monte Rosa will also be able to co-fund a late-stage program for MRT-6160 and share in the drug’s profits and losses in the U.S.
Shares of Monte Rosa are up 55% in pre-market trading.
Progress in this first collaboration has been “strong,” Fiona Marshall, president of Biomedical Research at Novartis, said in a prepared statement on Monday. “We are pleased to expand our collaboration with Monte Rosa Therapeutics,” she said, noting that the deal comes as the pharma continues to consider “targeted protein degradation as a promising approach to address immune-mediated diseases with high unmet need.”
Novartis is hardly the only pharma powerhouse buying into the promise of molecular glues. In May, Roche’s Genentech pledged up to more than $2 billion to expand its ongoing engagement with Orionis Biosciences, geared toward advancing small-molecule monovalent glues for cancer. Genentech and Orionis first partnered in 2023 for $47 million upfront and up to $2 billion in milestones.
For its part Novartis has been on a spending spree this month. In September alone, the company signed a deal with Arrowhead worth up to $2 billion on siRNAs to treat Parkinson’s, a new potential $5.2 billion deal with Argo for siRNA therapies in cardiovascular conditions and finally paid $1.4 billion to buy Tourmaline Bio.
