One of the leading pharmaceutical companies, Array BioPharma has signed a deal with the Novartis AG.

The deal is a licensing deal for the experimental cancer drug candidates of Array BioPharma. The Swiss drug maker Novartis AG is also ready for the license arrangement with the America Inc.

The financial aspects of the contract have been published. Array has to pay the Swiss company $45 million as upfront payments and $422 million in milestones.

However, the share prices of the American pharmaceutical company have gone up by 30% just after the announcement of the deal.

In the premarket trade, the company has managed to receive a huge response. Jefferies & Co analyst, Eun Yang has informed that the Swiss company is the specialist in the cancer treatment.

The US Company is looking forward to grab every opportunity in the field of treatment from the Novartis. The partnership will be an identical in financial and tactical terms.

But Rodman & Renshaw analyst, Simos Simeonidis has different view about the deal. He has said that he is still considering Array as an undervalued stock. Shares of the company were up by $3.93 in premarket trade.