Amgen Inc. on Monday announced it has entered into a collaboration and licensing agreement with German pharmaceutical company Immatics Biotechnologies to develop next-generation cancer treatments.

The Thousand Oaks biotech will utilize Immatic’s T-cell receptor technology combined with its Bispecific T-cell Engager platform to create new immunotherapy medications. T-cells are a subset of white blood cells that can naturally eradicate cancer cells through immune response.

Under the terms of the contract, Immatics will receive $30 million upfront and is eligible to receive north of $500 million in milestone payments for each program as well as royalties based on net sales. Amgen will be responsible for worldwide clinical development, manufacturing and commercialization of any future oncology drugs from the collaboration.

“The intersection of immunology and oncology represents a promising and rapidly developing approach that can have a significant impact for patients with cancer,” Dr. Sean Harper, Amgen’s executive vice president of research and development, said in a statement. “We look forward to collaborating with Immatics.”

Amgen shares closed Monday up $2.06, or 1 percent, to $158.84 on the Nasdaq.