Shares of Trubion Pharmaceuticals soared more than 60 percent this morning after the Seattle biotech announced a partnership with Facet Biotech Corp. to develop and commercialize a treatment for chronic lymphocytic leukemia. As part of the deal, Trubion is receiving an upfront payment of $20 million and could receive $176.5 million in additional payments if milestones are met.

In addition, Redwood City, Calif.-based Facet has agreed to buy 2.2 million shares of Trubion for $10 million.

Trubion's stock shot up about 60 percent on the news this morning.

"We are delighted to have Facet as our partner. Coupled with our own strengths in the discovery and development of novel protein therapeutics, their expertise will afford us the opportunity to pursue the clinical development and commercialization of TRU-016 and other CD37-directed therapeutics in the most aggressive manner possible," said Trubion CEO Peter Thompson in a press release.

Facet CEO Faheem Hasnain called Trubion'sTRU-016 drug candidate a "promising therapeutic" that "will greatly enchance our pipeline." TRU-016 is designed for the treatment of B-cell malignancies and autoimmune and inflammatory diseases.

As part of the deal, the companies have agreed to equally share the development, commercialization and promotional costs of the the drug. They also will split global operating profits.

Facet posted a net loss of $40.8 million during the second quarter, finishing the period with $371 million in cash and cash equivalents on the books.