07:45 AM EST, 12/11/2024 (MT Newswires) -- Monte Rosa Therapeutics ( GLUE ) said Wednesday it has closed its development and commercialization license deal with Novartis ( NVS ) for VAV1-directed molecular glue degraders, including MRT-6160.

Under the terms, Novartis ( NVS ) will attain rigths to develop, produce, and commercialize MRT-6160 and other VAV1 molecular glue degraders, Monte Rosa added.

Novartis ( NVS ) will carry out the phase 2 clinical trials, while Monte Rosa is in charge of completing the current phase 1 clinical study of MRT-6160, Monte Rosa said.

The clinical-stage biotechnology company will receive a $150 million upfront payment from Novartis ( NVS ), it said, adding that it will co-fund phase 3 development and share any profits and losses from the production and commercialization of MRT-6160 in the US.

Monte Rosa is also eligible for up to $2.1 billion in development, regulatory and sales milestones after initiation of phase 2 studies. It can also earn tiered royalties on ex-US sales.

The agreement was first announced in October.

Shares of Monte Rosa jumped over 8% in recent Wednesday premarket activity, while Novartis' ( NVS ) stock edged up by 0.1%.