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 said Novartis 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.

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