So, here’s a biotech story that actually involves a biotech company doing what biotech companies are supposed to do: making deals with big pharma. Shares of C4 Therapeutics (CCCC) got a nice little bump on Thursday, climbing as high as $3.66 in premarket trading. The reason? The company just decided to double down on its existing relationship with Swiss giant Roche (RHHBY).

They’ve entered into a new collaboration agreement focused on developing something called degrader-antibody conjugates, or DACs, for oncology targets. If you’re not up on the latest in cancer-fighting jargon, that’s basically a fancy way of saying they’re trying to combine two powerful technologies—targeted protein degradation and antibody-drug conjugation—into one potent treatment. The goal, as always, is to give doctors better options for their patients.

For C4 Therapeutics, the deal starts with a $20 million upfront payment for working on two initial programs. If Roche likes what it sees and decides to pick a third target, there’s an additional payment waiting. But the real potential is down the road: across the collaboration, C4 is eligible to receive over $1 billion in discovery, regulatory, and commercial milestone payments. On top of that, the company gets tiered royalties on any future sales. Not a bad payday for some early-stage research.

Here’s how the work gets split: C4 Therapeutics and Roche will collaborate on two programs to develop DACs against undisclosed oncology targets. C4 will bring its proprietary TORPEDO platform to the table to design the degrader payloads. Roche, being the much larger partner, will then take the reins on advancing any promising candidates through preclinical and clinical development, and ultimately handle commercialization if something makes it to market.

This expanded partnership comes at a time when C4 Therapeutics seems to be in a reasonably solid financial position. The company reported cash, cash equivalents, and marketable securities of $297.1 million as of December 31, 2025. Management expects that pile of money to fund operations all the way through the end of 2028, which gives them a decent runway to keep pushing their own internal programs forward while this Roche collaboration simmers.

Speaking of internal programs, C4 has been busy on that front too. In March, they dosed the first patient with their lead oral asset, cemsidomide, in a Phase 1b trial. They’re evaluating it in combination with an FDA-approved antibody for relapsed or refractory multiple myeloma. That follows on the heels of dosing the first patient in a Phase 2 trial for the same drug back in February. Enrollment for that Phase 2 study is expected to wrap up in the first quarter of 2027.

Wall Street seems to be taking a generally optimistic view. The stock carries a consensus Buy rating with an average price target of $20.72. Recent analyst actions have included Barclays raising its target to $7.00 in late February and Brookline Capital being even more bullish, lifting its target to $30.00 around the same time.

By the time the market closed on Thursday, C4 Therapeutics shares were up 1.03%, settling at $2.93. It’s a move that reflects some cautious optimism—a billion-dollar potential deal with a pharma heavyweight is nothing to sneeze at, even if most of that money is still far off in the future.