Abbott Laboratories (ABT) and Neurocrine Biosciences (NBIX) announced Wednesday they have entered into a collaboration agreement to develop and commercialize a potential gynecological treatment, elagolix. Elagolix, which has completed Phase IIb trials, is being developed for the treatment of endometriosis and uterine fibroids.

Endometriosis is a condition where tissue similar to the lining of the uterus is found elsewhere in the body, with symptoms ranging from menstrual pain, chronic pelvic pain and infertility. The number of women who suffer from endometriosis is thought to be around 100 million worldwide. The condition is associated with annual direct and indirect costs estimated to exceed $20 billion in the U.S. alone.

Abbott licensed worldwide exclusive rights to develop and sell elagolix. It will pay Neurocrine $75 million upfront and fund ongoing activities. Neurocrine is eligible for additional payments of about $500 million as well as royalties based on sales of elagolix if approved.

NBIX shares jumped nearly 20% in premarket trading.