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Investing.com - TD Cowen has reiterated its Buy rating on Monte Rosa Therapeutics (NASDAQ:GLUE), currently trading at $6.47, following the company’s announcement of an expanded collaboration with Novartis. According to InvestingPro data, analysts see significant upside potential with price targets ranging from $10 to $20, while the company maintains a "GREAT" financial health score.
The expanded deal includes a license for one new immunology and inflammation degrader and options on two additional programs, according to TD Cowen analyst Marc Frahm.
Under the terms of the agreement, Monte Rosa will receive $120 million upfront, option maintenance fees of up to $60 million, and potential milestone payments totaling up to $5.4 billion.
The company will also be eligible for tiered royalties on any products that emerge from the collaboration, though specific royalty rates were not disclosed.
TD Cowen views the expanded deal as validation of Monte Rosa’s QuEEN platform technology for identifying molecular glue degraders, which appears to be a key factor in the firm’s continued Buy recommendation on the stock.
In other recent news, Monte Rosa Therapeutics has announced a significant collaboration with Novartis to develop novel molecular glue degraders for immune-mediated diseases. This agreement provides Monte Rosa with an upfront payment of $120 million and the potential to earn up to $5.7 billion through various milestone payments and royalties. As part of the deal, Novartis gains an exclusive license to an undisclosed discovery target and options to license two programs from Monte Rosa’s preclinical immunology portfolio. Additionally, Monte Rosa has commenced a Phase 1 trial for MRT-8102, a molecular glue degrader targeting NEK7 for inflammatory conditions. This trial includes single and multiple ascending dose cohorts to evaluate safety and other pharmacodynamic markers, with initial results expected in the first half of 2026. These developments mark a notable expansion in Monte Rosa’s research and collaboration efforts.
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