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Cell Therapeutics

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soared following the announcement of a cancer-drug development deal with pharmaceuticals giant

Novartis

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potentially worth $285 million.

The stock jumped 22% to $1.95 in premarket trading Monday.

The deal covers the development and marketing of Cell's experimental drug for nonsmall-cell lung cancer, Xyotax, which is currently in phase III trials. Xyotax is also in investigational studies for use in other types of cancer.

Novartis will make a $15 million equity investment in Cell, and total product registration and sales milestones could reach up to $270 million.

Additionally, Novartis will have the option to develop and market the antitumor drug Pixantrone for a $7.5 million fee and $104 million in registration and sales milestones. The transaction is subject to antitrust clearance and certain other closing conditions.

Novartis shares dipped 6 cents, or 0.1%, to $57.06.