Halozyme Therapeutics, Inc. (NASDAQ: HALO) stock up more than 18% on Thursday after the biotechnology company announced that it has licensed its ENHANZE® drug-delivery technology to Roche for exclusive development of an undisclosed therapeutic target.

The company announced that under the terms of the agreement it will receive an initial $30 million with the potential to earn additional payments of up to $160 million subject to achievement of specified development, regulatory and sales-based milestones. Halozyme will also receive tiered, mid-single digit royalties on sales of commercialized products.

"We are pleased to broaden our longstanding collaboration with Roche to include selection of a new target," said Dr. Helen Torley, president and CEO. "With each new licensing agreement, we see the potential for our global partners to advance their innovative therapies, reducing the treatment burden for patients, caregivers and payers through shorter administration times or a less frequent dosing regimen."

According to the copmany’s official press release, the Halozyme/Roche relationship dates back to the original global collaboration and licensing agreement for the ENHANZE technology signed in 2006. ENHANZE technology is based on a proprietary recombinant human hyaluronidase enzyme (rHuPH20) that temporarily degrades hyaluronan -- a glycosaminoglycan or chain of natural sugars in the body -- to aid in the dispersion and absorption of other injected therapeutic drugs. For Halozyme partners, this technology may allow for more rapid delivery of injectable medications through subcutaneous delivery.