Novartis has entered a licensing agreement with Monte Rosa Therapeutics, a U.S.-based drug developer, to advance treatments for autoimmune diseases in a deal potentially worth up to $5.7 billion.
Under the terms of the agreement, Monte Rosa will receive an initial payment of $120 million, with potential for further payments contingent on advancement and regulatory milestones, bringing the total value to as much as $5.7 billion, according to Reuters.
Autoimmune diseases arise when the body’s immune system mistakenly attacks its own tissues and organs, presenting significant challenges for treatment and impacting patients’ quality of life.
the agreement provides Novartis with exclusive rights to a currently undisclosed drug candidate, as well as options to license two additional early-stage programs from Monte Rosa.
monte Rosa Therapeutics utilizes an artificial intelligence platform to identify and develop novel “degraders”-small molecules designed to selectively break down disease-causing proteins-which Novartis will then progress through clinical development and commercialization.
this partnership marks the second collaboration between Novartis and Monte Rosa, following a previous agreement last year focused on MRT-6160, a drug undergoing early clinical trials for autoimmune and inflammatory conditions.
The deal represents Novartis’s second major pharmaceutical transaction this month, following a partnership with Chinese company Argo Biopharmaceutical for experimental drugs valued at up to $5.2 billion.
Last week, Novartis announced its acquisition of American biopharmaceutical company Tourmaline Bio, developer of a promising treatment for atherosclerotic cardiovascular disease, in a transaction valued at $1.4 billion.
