Vertex Pharmaceuticals

(VRTX) - Get Report

shares rose in premarket trading Wednesday after the company announced a drug development deal with Switzerland-based

Novartis

(NVS) - Get Report

.

Cambridge, Mass.-based Vertex said Novartis had selected its small molecule protein kinase inhibitor, VX-322, for clinical development for the treatment of cancer. VX-322 is seen as a possible treatment for a wide range of leukemias, including acute myelogenous leukemia.

Under terms of the deal, Vertex will receive $10 million as well as milestone and royalty payments, should they apply. Novartis gets worldwide development and commercialization rights. The two companies first entered into an alliance in 2000.

Shares rose 54 cents, or 4.7%, to $12.