Monte Rosa Therapeutics (GLUE) said Monday that it has entered into a global development and commercialization license agreement with Novartis (NVS) for VAV1-directed molecular glue degraders, including MRT-6160.

The agreement gives Novartis exclusive global rights to develop, manufacture, and commercialize MRT-6160 and other VAV1 MGDs, Monte Rosa said. Novartis will conduct the clinical studies of MRT-6160, starting with the phase 2 trial, while Monte Rosa is in charge of completing the ongoing phase 1 clinical study, Monte Rosa added.

Monte Rosa said it will receive $150 million upfront from Novartis and will be eligible to receive up to $2.1 billion in development, regulatory, and sales milestones as well as royalties on ex-US net sales.

Monte Rosa added that it will co-fund phase 3 development and share any profits and losses from the manufacturing and commercialization of MRT-6160 in the US.

Monte Rosa's shares jumped more than 39% in recent premarket activity while Novartis shares were down 0.3%.

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