UPDATED Oct. 20, 2016, with Cerulean share price movement.

Cerulean Pharma Inc. (NSDQ:CERU) said today that it inked a deal with Novartis (NYSE:NVS) to develop nanoparticle-drug conjugates. The products will match Cerulean’s tumor-targeting tech with Novartis compounds directed at up to 5 targets.

The agreement calls for Cerulean to receive $5 million plus funding for 5 full-time equivalents to develop NDC candidates. The Waltham, Mass.-based company can also receive preclinical, clinical, regulatory, and sales milestones for each target, as well as single-digit to low double-digit tiered royalties on net sales for each NDC product, following regulatory approval. Swiss biotech giant Novartis is responsible for further development and commercialization of NDC products that result from the collaboration.

“Novartis is widely recognized as one of the world leaders in drug development,” Cerulean president & CEO Christopher D.T. Guiffre said in prepared remarks. “This collaboration is further validation of our powerful technology platform, and we are excited that Novartis is including NDCs in its drug discovery and development efforts. We are pleased to have the opportunity to contribute to Novartis’ pipeline, and we believe that partnering with them will help accelerate our efforts to provide safer and more effective options to cancer patients.”

As of today, Novartis has not made an official statement on the deal.

Cerulean’s stock jumped 37% on the deal, trading at 95¢ per share in pre-market activity.