Bristol Myers Squibb  (BMY) – Get Free Report is set to buy cancer drug specialists Mirati Therapeutics  (MRTX) – Get Free Report in a $5.8 billion dollar all-cash deal that adds to a string of recent acquisitions in the oncology sector. 

Bristol Myers will pay $58 per share for San Diego, California-based Mirati, a 3.65% discount to its Friday closing price and representing a market value of $4.8 billion. Mirati shareholders will also get share rights worth $12 each, worth another $1 billion, if it reaches certain performance milestones.

Mrati’s most-valuable asset, in terms of near-term cash generation, is likely its recently approved lung cancer treatment. Krazati, which will provide an immediate boost to Bristol Myers’ oncology division. 

Last year, Bristol Myers paid around $4.1 billion for another San Diego-based oncology group, Turning Point Therapeutics, which focuses on oncogenesis, or the process in which healthy cells turn cancerous.

 “We are excited to add these assets to our portfolio and to accelerate their development as we seek to deliver more treatments for cancer patients,” said Bristol Myers CEO Giovanni Caforio. “With a strong strategic fit, great science and clear value creation opportunities for our shareholders, the Mirati transaction is aligned with our business development goals. Importantly, by leveraging our skills and capabilities, including our global commercial infrastructure, we will ensure patients globally can benefit from Mirati’s portfolio of innovative medicines.” 

Mirati shares were marked 2.18% lower in pre-market trading to indicate an opening bell price of $58.89 each while Bristol Myers slipped 0.28% to $56.50 each. 

Earlier this week, pharma rival Eli Lilly ELI said it would pay $1.4 billion for radiation-therapies expert Point Biopharma PNT , another deal that adds to its adds to its growing oncology portfolio, which was jump-started in 2019 with the $8 billion takeover of cancer treatment specialists Loxo Oncology

• Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.