Novartis has entered into a licensing agreement with Monte Rosa Therapeutics valued at up to 5.7 billion USD. The deal centres on developing medicines for immune-mediated diseases, where the immune system mistakenly attacks healthy tissue. Under the terms, Monte Rosa Therapeutics will receive 120 million USD upfront. Additional milestone and royalty payments could increase the total value substantially.

The agreement grants Novartis exclusive rights to an undisclosed drug-discovery target from Monte Rosa, and provides options to license two further programmes from Monte Rosa’s early-stage immunology pipeline. Monte Rosa will use its AI-enabled platform to discover small molecule degraders that target problematic proteins causing disease. Novartis will then take responsibility for clinical development and commercialisation of the selected programmes.

This partnership marks the second major deal between the two firms, following their prior collaboration on MRT-6160, which is currently in early-stage trials. Market reaction was strong; Monte Rosa’s share price surged sharply in pre-market trading upon the announcement.

The deal reflects Novartis’s growing commitment to novel therapeutic approaches, particularly molecular glue degraders, which enable the targeting of hard-to-treat proteins. With immune-based disorders representing a significant medical need, this collaboration is poised to be a key part of Novartis’s strategy to expand its immunology portfolio.