In a recent move in the Biotech industry, Monte Rosa Therapeutics (GLUE, Financial) got into a great partnership with Swiss Novartis for up to $2.1 billion, lifting shares sky-high. The document deals with both parties' efforts to MRT-6160, a drug to treat ailments related to the immune system that is presently under phase I clinical trials.
As part of the deal, Novartis is set to transfer $150 million to Monte Rosa to buy a worldwide license for MRT-6160 and other potential molecular glue degrader treatments. Beyond the $25 million upfront fee, Monte Rosa might be able to get additional payments for development, regulatory, and commercialization milestones, adding up to $2.1 billion every time the development enters Phase 2 studies. Royal has also included tiered royalties on the products to be sold in markets outside the United States of America.
Novartis will take over clinical development and later commercialization starting in Phase 2, while Monte Rosa will complete Phase 1 and support the Phase 3 developmental funding. Both companies will split revenues and costs resulting from operations in the United States.
According to Monte Rosa's CEO, Dr. Markus Warmuth, this partnership should increase its longevity by several years to help it expand its pipeline and build on the QuEEN discovery tool. After the announcement, Monte Rosa's stock price rose by 130 per cent to reach a 2-year high, while Novartis's climbed only up by 1.5 per cent. This cooperation not only strengthens through financial support for the further development of Monte Rosa but also represents a turning point regarding the relative growth of new treatments for immune system diseases.
