NEW YORK (TheStreet) -- Shares of Signal Genetics (SGNL) were gaining 48.7% to $2.20 on heavy trading volume Tuesday after the molecular diagnostics company announced a new master service agreement with a leading pharmaceutical company.

Under the new master service agreement the pharmaceutical company will use Signal Genetics' MyPSR genetic test in multiple clinical trials related to the development of "novel treatments for patients with multiple myeloma." The company said MyPSR will inform patterns of response to therapy regimens to help physicians better manage multiple myeloma patients based on their genetic profile.

"This services agreement with a leading pharmaceutical company is a significant achievement for Signal, and validates the potential of our technology to impact therapy decisions in multiple myeloma," Michael Cerio, SVP of Commercial Strategy and Business Development, Signal Genetics, said in a statement.

Cerio continued, "Developing a pipeline of pharmaceutical company relationships is a key objective for Signal, and we plan to pursue additional clinical trial service agreements with multiple clients as part of our overarching commercial strategy going forward."

About 2.8 million shares of Signal Genetics were traded by 9:54 a.m., above the company's average trading volume of about 174,000 shares a day.

SGNL data by YCharts

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