Starpharma Holdings (ASX:SPL) signed a collaboration and license agreement with Genentech, a member of the healthcare group Roche, to develop potential cancer therapies using Starpharma's proprietary product drug delivery technology for an upfront payment of $5.5 million, according to a Monday Australian bourse filing.

The company will be eligible to receive up to $564 million in development, regulatory, and commercial milestones, as well as tiered royalties on global net sales of products resulting from the collaboration, the filing said. It granted Genentech an exclusive worldwide license under its intellectual property to commercialize products resulting from the parties' collaboration.

The firm will use its technology to generate dendrimer-drug conjugates that incorporate Genentech medicines for oncology targets. However, it will not be permitted to generate products directed to these oncology targets for itself or third parties.

Starpharma's shares soared nearly 77% in early trading on Monday, earlier reaching their highest point in over two years.