In the wake of announcing an exclusive deal with Novartis AG NVS, shares of Ionis Pharmaceuticals Inc. (IONS) continued to surge during Wednesday’s morning session.

As of 11:01 a.m., Ionis’ stocks were trading at $51.71, an increase of 3.28 percent. The momentum was spurred by Tuesday’s results, which saw shares close at 50.07, an increase of 4.01 percent. Ionis’ range Tuesday went from $47.06 to $50.25.

A Carlsbad, California-based biotechnology company, Ionis researches and develops drugs domestically for rare diseases. Ionis and Novartis agreed to collaborate with the development and marketing of two treatments with the potential to treat cardiovascular disease. The two drugs the two companies plan to commercialize are AKCEA-APO(a)-L and AKCEA-APOCIII-L, according to a press release. Reuters reported the agreement could evolve into a $1 billion deal. (See also: Biogen, Ionis Rise on SMA Drug News.)

The deal called for Ionis, which had a market valuation of $ 6.07 billion, to receive upfront payments of $75 million and an equity investment of $100 million, equaling 1,631,435 shares of stock at $61.30 per share, Zacks reported.

Backed by the recent approval of Spinraza, a disputed treatment of spinal muscular atrophy, Ionis expected to close 2016 with revenues of approximately $360 million, including more than $150 million during the fourth quarter. The company opened 2017 with $650 million in cash and a pro forma net operating income of approximately $20 million, a release stated. (See also: Biogen, Ionis Under Fire for Spinraza.)

Zacks rates Ionis’ stocks as a Hold.


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