Pasadena biotechnology company Arrowhead Research Corp. announced today that it had struck a deal to acquire the RNAi research and development portfolio of drug maker Novartis in a deal valued at about $35 million.

The deal includes the acquisition of some patents as well as patent applications owned by Novartis and related to RNAi therapeutics, the source of potential treatments for cancer and other hard-to-treat illnesses.

Under the agreement, Arrowhead has paid $7 million in cash to Novartis and will pay an additional $3 million in cash after it completes its review of the Novartis portfolio plus another $25 million in Arrowhead common stock.

“Novartis has been developing its portfolio of technologies and IP for the better part of the last decade, so this is a very exciting acquisition for us,” Arrowhead Chief Executive Christopher Anzalone said in a conference call. “It provides us with a number of valuable assets including … three preclinical programs that Novartis has been developing.”

News of the deal sent share of Arrowhead shares up 5.7 percent in Thursday trading to close at $7.94.