Swiss drugmaker Novartis and drug developer Monte Rosa Therapeutics signed a licensing deal worth up to US$5.7 billion on Monday to develop drugs for immune-mediated diseases.
Under the agreement, Monte Rosa Therapeutics will receive an upfront payment of $120 million and could earn up to $5.7 billion in total, including milestone payments and royalties on future drug sales.
This marks Novartis’ second major deal this month, following an up-to-$5.2 billion deal with China’s Argo Biopharmaceutical for experimental heart drugs.
Shares of Monte Rosa surged 50 per cent in premarket trading after the announcement.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Tasim Zahid)
