Monte Rosa Turns to Profit on Novartis Milestone

The Tip Desk · November 7, 2026 · 3 min read

Collaboration revenue was $54.4 million in the third quarter as a $50 million Sjögren’s milestone was recognized, and cash stood at $582.6 million at September 30.

Monte Rosa Therapeutics (GLUE), a clinical-stage biotechnology company developing molecular glue degrader medicines, reported net income of $3.1 million for the third quarter ended September 30, 2026, compared with a net loss of $27.1 million a year earlier.

Collaboration revenue was $54.4 million, versus $12.8 million in the third quarter of 2025. The company said the increase was primarily driven by recognition of a $50.0 million milestone triggered by Novartis initiating a Phase 2 study of MRT-6160 (DDY391) in Sjögren’s disease.

A $37.5 million milestone from Novartis starting a second Phase 2 study of MRT-6160 in psoriatic arthritis in October was not reflected in third-quarter collaboration revenue because it was triggered after quarter-end. Together, the two first-patient-visit events brought Phase 2 milestone payments to date to $87.5 million. Cash receipts from both milestones had not been received as of September 30.

Research and development expenses were $45.4 million, compared with $36.7 million a year earlier, which the company attributed primarily to increased spending on development and discovery programs. Stock-based compensation in R&D was $3.3 million. General and administrative expenses were $10.9 million, versus $9.1 million, including $3.0 million of stock-based compensation.

Cash, cash equivalents, restricted cash, and marketable securities were $582.6 million as of September 30, down $43.4 million from $626.0 million at June 30, primarily from operational use of cash. Monte Rosa said that balance, excluding the pending MRT-6160 Phase 2 initiation milestones, is expected to support operations into 2029.

In October the company reported positive results from GFORCE-1, a Phase 1 study of NEK7-directed MRT-8102 in 108 obese subjects with elevated cardiovascular disease risk. Across three dose levels, MRT-8102 achieved median NEK7 degradation of approximately 80% to 90% and produced substantial reductions in IL-1β and damage-associated molecular patterns linked to atherosclerotic plaque biology. The company said the drug was well tolerated, with no serious adverse events, adverse-event rates similar to placebo, and no evidence of increased infection risk.

With dose selection informed by those data, Monte Rosa plans three Phase 2 studies of MRT-8102. GEMINI-1 in gout is expected to initiate in the fourth quarter of 2026, with initial data in the second half of 2027. GFORCE-2, a Phase 2b study in stable coronary artery disease with residual inflammation, and GALAXY-1 in hidradenitis suppurativa are each expected to start in the first half of 2027. IND submission for a next-generation NEK7 degrader is now anticipated in 2027 due to prioritization of those MRT-8102 initiations.

In August, Monte Rosa dosed the first patient in MODeFIRe-1, a Phase 2 study of GSPT1-directed MRT-2359 in combination with apalutamide in heavily pretreated metastatic castration-resistant prostate cancer patients with androgen receptor mutations. The study will enroll up to 25 patients. Enrollment in the initial Phase 1/2 expansion arm was completed, with six AR-mutant patients treated with MRT-2359 plus enzalutamide; a data update on that subset is planned by year-end, and a Phase 2 update from MODeFIRe-1 is expected in 2027.

Novartis’s Sjögren’s and psoriatic arthritis trials are the first two of several MRT-6160 Phase 2 studies expected under the global exclusive license. Monte Rosa said it is eligible for additional Phase 2 initiation milestones. The company also expects to submit IND applications for CDK2- and cyclin E1-directed degraders in 2027.