Novartis to pay Monte Rosa $150 million upfront to develop a new class of drugs

Published On : 10/29/2024

(Reuters) – Swiss pharmaceutical giant Novartis will pay Monte Rosa Therapeutics $150 million upfront payment for a global license to develop, manufacture and sell some drug candidates, the U.S.-based biotech firm said on Monday.

The agreement covers a class of drugs called “molecular glue degraders,” which target abnormal protein functions associated with some diseases that are hard to treat with existing medications.

Monte Rosa will also be eligible for future payments of up to $2.1 billion as well as royalties on net sales outside the U.S.

Shares of Monte Rosa surged 32% to $6.46 in premarket trade following the news.

CONTEXT

Novartis is bracing for the loss of U.S. patent protection next year for its bestseller Entresto and for Promacta to treat a lack of blood platelets.

WHY IT’S IMPORTANT

Among the candidates, Novartis will get access to MRT-6160, for which Monte Rosa is currently conducting an early-stage study for immune-mediated conditions. Novartis will take over the development of the candidate from mid-stage trials.

Like many major pharmaceutical companies, Novartis has been actively securing deals to strengthen its drug pipeline and mitigate the impact of losing exclusivity on key medications.

The Swiss company is also streamlining its operations by cutting jobs and costs and sharpening focus on fewer therapeutic areas and geographic markets.

KEY QUOTE

“Novartis has had a long-standing interest in molecular glue degraders, which offer the potential to tackle challenging biological targets,” said Fiona Marshall, president of biomedical research at Novartis.

(Reporting by Leroy Leo in Bengaluru; Editing by Tasim Zahid)

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.