Biopharmaceutical firm Xoma Ltd said it entered into a research and development deal related to its antibody technologies with a unit of Cephalon Inc.
Under terms of the agreement, the unit Arana Therapeutics Ltd agreed to pay Xoma $6 million and Xoma will be entitled to milestone payments and royalties on product sales, the company said in a statement.
It will be fully reimbursed for all services it may provide to Arana under the deal, Xoma added.
Shares of Xoma rose 13 percent to 93 cents in premarket trade. They closed at 82 cents Tuesday on Nasdaq.
(Reporting by Shailesh Kuber in Bangalore; Editing by Aradhana Aravindan)