Monte Rosa Therapeutics Inc (NASDAQ:GLUE) stock is trading higher on Monday after the company announced a global exclusive development and commercialization license agreement with Novartis AG (NYSE:NVS) to advance VAV1 MGDs, including MRT-6160.

MRT-6160 is currently in an ongoing Phase 1, single ascending dose (SAD)/multiple ascending dose (MAD) healthy volunteer study for immune-mediated conditions.

Also Read: Monte Rosa Therapeutics’ AI And Machine Learning Platform Is Adding Significant Value Creation in Cancer Research: Analyst

Under the terms of the agreement, Novartis will obtain exclusive worldwide rights to develop, manufacture, and commercialize MRT-6160 and other VAV1 MGDs and will be responsible for all clinical development and commercialization, starting with Phase 2 studies.

Novartis has agreed to pay Monte Rosa $150 million upfront. Monte Rosa is eligible to receive up to $2.1 billion in development, regulatory, and sales milestones, beginning upon initiation of Phase 2 studies, and tiered royalties on ex-U.S. net sales.

Monte Rosa will co-fund any Phase 3 clinical development and share any profits and losses associated with the manufacturing and commercialization of MRT-6160 in the U.S.

Monte Rosa remains responsible for completing the ongoing Phase 1 clinical study of MRT-6160.

In August, Monte Rosa Therapeutics dosed the first patient in the Phase 1 SAD/MAD study of MRT-6160. The company expects to obtain initial data from the Phase 1 study in the first quarter of 2025.

MRT-6160 is a potent, highly selective, and orally bioavailable investigational degrader of VAV1, a key signaling protein downstream of both the T- and B-cell receptors.

Preclinical studies have demonstrated deep degradation of VAV1, resulting in a significant decrease in cytokines linked to immune-mediated conditions, with no detectable effects on other proteins.

MRT-6160 has shown activity in preclinical models of multiple immune-mediated conditions.

Monte Rosa plans to provide further information regarding its updated cash position and runway in its third quarter 2024 earnings update.

Price Action: GLUE stock is up 30.1% at $6.35 during the premarket session at last check Monday.

Photo via Shutterstock

Read Next:

• EXCLUSIVE: Nano-Cap NeuroSense Schedules FDA Meeting To Advance Lead Program And Marketing Application Submission

Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.

Get the latest stock analysis from Benzinga?

• NOVARTIS (NVS): Free Stock Analysis Report

This article Why Is Monte Rosa Therapeutics Stock Surging On Monday? originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.