07:31 AM EST, 12/02/2024 (MT Newswires) -- PTC Therapeutics ( PTCT ) said Monday that it signed an exclusive global license and collaboration agreement for its PTC518 Huntington's disease program with a subsidiary of Novartis ( NVS ) , and will receive a $1 billion upfront payment.

The company said it will also be entitled to additional payments of up to $1.9 billion based on development, regulatory and sales milestones, plus a profit share in the US and double-digit tiered royalties on international sales.

As part for the deal, PTC Therapeutics ( PTCT ) said Novartis ( NVS ) will be in charge of PTC518's development, manufacturing and commercialization after the completion of the ongoing placebo-controlled portion of a phase 2 trial on PTC518, which is expected in the first half of 2025.

The transaction is expected to close in Q1 2025, said PTC Therapeutics ( PTCT ).

PTC Therapeutics ( PTCT ) shares were up over 20% in recent premarket activity.