BioLineRx's Stock Rallies After Collaboration Agreement With Novartis Pharma

Shares of BioLineRx soared 17% in premarket trade Tuesday after the biopharmaceutical company said it entered into a collaboration agreement with Novartis Pharma to develop and commercialize its drug candidates. As part of the agreement, Novartis invested $10 million in BioLineRx through the purchase of 5 million U.S.-listed shares of the company. Novartis will also pay BioLineRx a $5 million fee, if a drug development project is selected, and fund 50% of the development costs. Through Monday, BioLineRx's stock had dropped 42% this year, compared with a 7.6% rise in the S&P 500.