April 11 (Reuters) - Swiss drugmaker Novartis AG

has entered into a licensing deal worth up to $1.01

billion with Arvinas ( ARVN ) to gain access to the U.S. biotech

firm's experimental prostate cancer drug, Arvinas ( ARVN ) said on

Thursday.

Shares of Connecticut-based Arvinas ( ARVN ) rose more than 6% to $39

in premarket trade.

The pact adds to Novartis' pursuit of cancer treatments

after it launched a tender offer on Thursday to acquire German

cancer drugmaker MorphoSys for an aggregate 2.7

billion euros ($2.9 billion).

Novartis has been cutting jobs and trying to rein in costs

after spinning off its generic drugs business Sandoz last year,

to focus on fewer therapeutic areas and geographic markets.

Under the agreement with Arvinas ( ARVN ), Novartis has acquired

global rights to develop and commercialize the drug, ARV-766,

for an upfront payment of $150 million.

The partnership is a validation of Arvinas' ( ARVN ) protein

degradation platform and the drug candidates being developed

against a type of prostate cancer, Truist Securities analyst

Srikripa Devarakonda wrote in a note.

Novartis will also buy another candidate in preclinical

stage targeting prostate cancer, AR-V7, as part of the deal,

Arvinas ( ARVN ) said.

Arvinas ( ARVN ) is also eligible to get tiered royalties for the

drug and potential milestone payments adding up to $1.01

billion.

ARV-766 is designed to target and degrade androgen

receptors, which bind to male sex hormones or androgens.

Arvinas ( ARVN ) is developing treatments that harness the body's own

natural protein disposal system to degrade and remove

disease-causing proteins.