BioAge Labs saw a significant increase in its shares, rising by 14% to $4.67, after announcing a research collaboration with Novartis.

The collaboration has the potential to be worth up to $550 million. This increase in share price comes after a significant drop of 76% on December 6, when BioAge Labs announced the discontinuation of a phase-two trial for its obesity treatment.

The collaboration between BioAge Labs and Novartis will focus on a multi-year research project that aims to understand aging-related diseases and the impact of physical exercise on longevity. BioAge Labs will utilize its extensive human longevity datasets, while Novartis will contribute its expertise in exercise biology. The agreement includes upfront research funding, with BioAge Labs eligible for payments of up to $20 million, as well as an additional $530 million tied to future research, development, and commercial milestones. Both BioAge Labs and Novartis will have the rights to pursue novel targets identified during the collaboration.