Novartis signs up to $5.7 billion licensing deal with Monte Rosa Therapeutics

(Reuters) - Swiss drugmaker Novartis and drug developer Monte Rosa Therapeutics signed a licensing deal worth up to $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% in premarket trading after the announcement.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Tasim Zahid)