Key Takeaways Shares of PTC Therapeutics soared Monday when the pharmaceutical firm announced it struck a nearly $2 billion license and collaboration deal with Novartis.The deal gives Novartis global development,

On Monday, PTC Therapeutics, Inc. (NASDAQ:PTCT) signed an exclusive global license and collaboration agreement with Novartis AG (NYSE:NVS) for its PTC518 Huntington’s disease program, which includes related molecules.

Swiss drugmaker Novartis will pay up to $2.9 billion for PTC Therapeutics' promising experimental drug for a neurological disorder called Huntington's disease, sending the U.S.-based biotech's shares up about 14% on Monday.

At the center of a new licensing deal is an experimental medicine, PTC518, which is currently being tested in a roughly 250-person study that should produce results next year.

The Swiss pharmaceutical company invests in a PTC Therapeutics program to develop treatment for Huntington’s disease.

The potential $2.9 billion deal stands the New Jersey company in good stead after recent disappointing results in its ALS program.

Novartis is paying $1 billion upfront in a licensing deal for an experimental Huntington’s disease treatment from PTC Therapeutics.

PTC Therapeutics has signed an up to $2.9 billion licensing deal with Novartis AG for the U.S. company's experimental drug for a rare neurological disorder, sending its shares up 20% in premarket trading on Monday.