Novartis Agrees to $5.7 Billion Deal with Monte Rosa for Drug Development

Novartis AG, a leading pharmaceutical company, has reached a $5.7 billion deal with Monte Rosa for drug development. The deal focuses on oncology, immunology, cardiovascular, renal, and metabolic diseases, as well as neuroscience. Novartis has over 30 production sites worldwide and a global presence in Europe, the US, Asia, Africa, Australasia, Canada, and Latin America.

Monte Rosa Therapeutics, Inc. (Nasdaq: GLUE) has secured a significant collaboration agreement with Novartis AG, valued at up to $5.7 billion. The deal focuses on the development of molecular glue degrader (MGD)-based medicines for a range of diseases, including oncology, immunology, cardiovascular, renal, metabolic, and neuroscience. The agreement marks a strategic milestone for both companies, leveraging Monte Rosa's proprietary AI/ML-enabled QuEEN™ platform and Novartis' extensive expertise in drug development and commercialization Monte Rosa Therapeutics Announces Collaboration with Novartis for Degraders to Treat Immune-mediated Diseases^[1].

Under the terms of the agreement, Monte Rosa will receive an upfront payment of $120 million, with potential total deal value reaching $5.7 billion. This includes tiered royalties in the high single to low double-digit range, as well as option maintenance payments and milestone payments. The collaboration allows Monte Rosa to extend its cash runway beyond multiple Phase 2 readouts, providing substantial financial validation for its QuEEN™ platform technology Monte Rosa Therapeutics Announces Collaboration with Novartis for Degraders to Treat Immune-mediated Diseases^[1].

The deal represents a significant strategic win for Monte Rosa, enabling the company to advance its wholly owned programs in autoimmune conditions and extend its runway beyond multiple Phase 2 readouts for MRT-8102, MRT-6160, and MRT-2359. Novartis, in turn, receives an exclusive license to an undisclosed discovery target and options to license two programs from Monte Rosa's preclinical immunology portfolio Monte Rosa Therapeutics Announces Collaboration with Novartis for Degraders to Treat Immune-mediated Diseases^[1].

This collaboration demonstrates growing confidence in Monte Rosa's technology platform and pipeline potential. The structure of the deal allows Monte Rosa to leverage Novartis' development expertise while retaining ownership of its most advanced assets. The agreement further strengthens Monte Rosa's financial position, providing a robust foundation for future growth and development Monte Rosa Therapeutics Announces Collaboration with Novartis for Degraders to Treat Immune-mediated Diseases^[1].

The partnership also underscores Novartis' commitment to advancing targeted protein degradation as a promising approach to address immune-mediated diseases with high unmet need. With over 30 production sites worldwide and a global presence, Novartis is well-positioned to bring transformative therapies to patients Monte Rosa Therapeutics Announces Collaboration with Novartis for Degraders to Treat Immune-mediated Diseases^[1].

Monte Rosa plans to provide further information regarding its updated cash position and runway in its third quarter 2025 earnings update. Lazard served as the exclusive financial advisor to Monte Rosa for this agreement Monte Rosa Therapeutics Announces Collaboration with Novartis for Degraders to Treat Immune-mediated Diseases^[1].