Shares of drug developer Xoma ( XOMA) jumped more than 7% after the company said it's expanding its collaboration with Schering-Plough ( SGP) in the development of antibodies to treat cancer and immune diseases.

The stock gained 17 cents to $2.52 Wednesday morning.

Xoma has received upfront payments for each additional collaboration program and will also receive research funding for each project as well as success-based milestones and royalties on sales of products that result from the collaboration, the company said in a press release Wednesday morning.

"We have made significant progress on the first product program since its initiation with Schering-Plough in mid-2006,'' said Xoma. "We look forward to advancing the new programs in a similar high quality and expedited manner.''

Xoma and Schering-Plough announced their initial collaboration last May. Under the agreement, Xoma will discover and develop therapeutic antibodies to treat multiple disease targets selected by Schering-Plough, conduct early studies to support regulatory filings, and produce the antibodies for initial clinical trials.

More from Stocks

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker