Top Gainer Monte Rosa Therapeutics’ Stock Enthralls Retail With Novartis Licensing Deal

Shares of Monte Rosa Therapeutics Inc. ($GLUE) surged over 130% Monday, marking the stock as the top gainer across U.S. exchanges and reaching levels last seen in July 2022. 

The surge followed Monte Rosa’s announcement of an exclusive global licensing agreement with Novartis AG ($NVS) to develop and commercialize its investigational therapies for immune-mediated conditions, particularly MRT-6160.

Under this agreement, Novartis gains exclusive worldwide rights to MRT-6160 and other VAV1-targeting molecular glues (MGDs), committing $150 million upfront to Monte Rosa. 

Additionally, Monte Rosa is eligible for up to $2.1 billion in development, regulatory, and sales milestones, along with tiered royalties on ex-U.S. sales.

While Novartis will lead the clinical development beginning with Phase 2, Monte Rosa will complete the current Phase 1 study of MRT-6160, co-fund any Phase 3 clinical development, and share 30% of profits and losses in the U.S. for manufacturing and commercialization.

Retail investors on Stocktwits reacted with heightened enthusiasm, pushing sentiment on Stocktwits to ‘extremely bullish’ (97/100) levels, the highest in a year.

Piper Sandler responded to the news by raising its price target on Monte Rosa shares from $16 to $20 while maintaining an 'Overweight' rating.

Before this agreement, Monte Rosa shares were down 13% year-to-date. This recent spike has not only erased those losses but has brought GLUE stock up by 90% for 2024. 

The collaboration with Novartis is expected to accelerate the advancement of MRT-6160 and could signal substantial growth ahead for Monte Rosa in the biopharma space.

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