Monte Rosa Therapeutics' Shares Surge 44.1% After Multi-Billion Dollar Collaboration Deal with Novartis

Monte Rosa Therapeutics (GLUE) shares soared 44.1% to close at $6.93 after announcing a multi-billion-dollar collaboration deal with Novartis for developing novel therapies for immune-mediated diseases. The deal carries a potential value of up to $5.7 billion, with Novartis paying an upfront payment of $120 million and royalties on future sales. The company is expected to post a quarterly loss of $0.28 per share, up 3.5% YoY.

Monte Rosa Therapeutics (GLUE) shares surged 44.1% to close at $6.93 on Monday, September 12, 2025, following the announcement of a significant collaboration deal with Novartis. The agreement, which carries a potential value of up to $5.7 billion, involves the development of novel therapies for immune-mediated diseases.

Under the terms of the deal, Novartis will receive an exclusive license to an undisclosed discovery target and options to license two programs from Monte Rosa's preclinical immunology pipeline. Monte Rosa will leverage its proprietary AI/ML-enabled QuEEN™ platform to identify and advance degraders, which Novartis will further develop and commercialize. The financial terms include an upfront payment of $120 million to Monte Rosa, with additional option maintenance payments and tiered royalties on global net sales in the high single to low double-digit range.

The deal follows a previous agreement between Monte Rosa and Novartis, announced in October 2024, which granted Novartis a global exclusive license for Monte Rosa's VAV1 degraders, including MRT-6160. This new collaboration is expected to accelerate the development of degraders for immune-mediated diseases, leveraging Monte Rosa's highly selective and potent molecular glue degraders (MGDs).

Monte Rosa's Chief Executive Officer, Markus Warmuth, M.D., expressed excitement about the collaboration, stating, "We are extremely excited to extend our relationship with Novartis beyond our previously announced VAV1 agreement given the strong progress made to advance MRT-6160 toward initiation of multiple Phase 2 studies in immune-mediated diseases."

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

Monte Rosa plans to provide further information regarding its updated cash position and runway in its third quarter 2025 earnings update. The company's stock price increase reflects investor optimism about the potential of the collaboration and the value it brings to Monte Rosa's pipeline.