Monte Rosa Therapeutics (NASDAQ:GLUE) shares surged in premarket trading Monday, climbing 65.3% to $7.94 after the biotech firm announced a new collaboration with Novartis (NYSE:NVS) to develop molecular glue degraders (MGDs) targeting immune-mediated diseases.

The Boston-based company said Novartis will gain an exclusive license to one undisclosed discovery target and hold options to license two additional preclinical immunology programs. Monte Rosa will receive a $120 million upfront payment and may also earn option maintenance fees, development and regulatory milestones, plus tiered royalties on global net sales, with the total deal potentially reaching $5.7 billion.

CEO Markus Warmuth emphasized the partnership’s strategic value, noting that it expands on the companies’ existing work with Monte Rosa’s VAV1 degraders, including MRT-6160, and demonstrates confidence in the firm’s QuEEN platform.

“We believe this new agreement further strengthens our relationship with Novartis, a recognized global leader in immune-mediated diseases, and reflects the expansive opportunity in the space for our highly selective and potent MGDs,” Warmuth said.

Novartis highlighted the collaboration’s potential to advance targeted protein degradation in immunology.

“This new agreement underscores our commitment to advancing targeted protein degradation as a promising approach to address immune-mediated diseases with high unmet need,” said Fiona Marshall, President of Biomedical Research at Novartis.

Monte Rosa added that the cash infusion will extend its financial runway, supporting faster development of both partnered and fully owned programs in autoimmune conditions driven by Th1, Th2, and Th17 pathways. Lazard served as the company’s exclusive financial adviser for the deal.

Monte Rosa Therapeutics stock price

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