Bristol Myers Squibb has acquired San Diego-based biotechnology company Mirati Therapeutics for over $4.8 billion, with the deal financed through cash and debt. The acquisition, which could potentially result in additional $1 billion in milestone payments, is expected to be completed at a price of $58 per share.

The anticipated closing date for the deal is in the first half of the upcoming year.

“Bristol Myers Squibb’s global scale, resources and commitment to innovation will enable Mirati’s therapeutics to benefit more patients, faster, and deliver on our vision of unlocking the science behind the promise of a life beyond cancer,” said Charles Baum, founder and CEO of Mirati Therapeutics, in a statement.

This acquisition is part of Bristol-Myers Squibb's larger strategy to diversify its cancer treatment portfolio. Bristol Myers Squibb is acquiring Mirati's commercial non-small cell lung cancer drug, Krazati, which received FDA approval in December.

According to the company's quarterly report, Krazati generated $19.7 million in revenue in the first half of this year. Adding this commercial drug strengthens Bristol Myers Squibb's presence in targeted cancer therapies, complementing its existing immunotherapy offerings.

Mirati is the second San Diego biotech company that Bristol Myers Squibb has recently acquired for its oncology portfolio. Last year, the company paid $4.1 billion for Turning Point Therapeutics in order to gain access to its treatments for lung cancer and cancer-causing mutations.

For 28 years, Mirati Therapeutics, located in San Diego, has been actively engaged in developing treatments that target the genetic and immunological factors underlying cancer. At the end of last year, the biotech company had a workforce of 593 employees.

In addition to acquiring Krazati, Bristol Myers Squibb secures access to Mirati's pipeline of potential treatments for various cancer types, including lung, bile duct, and skin cancer tumors, as well as mutations in pancreatic, lung, and colorectal cancers.

“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 Giovanni Caforio, CEO of Bristol Myers Squibb, in a statement. “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.”

Neither company responded quickly to the Union-Tribune's inquiries about the integration of their operations, the status of Mirati's CEO, and the fate of the local workforce.

The acquisition of Mirati was not entirely unexpected, as rumors had circulated last week following a report by Bloomberg suggesting that a French pharmaceutical company, Sanofi, was considering purchasing Mirati.

In response to Bristol Myers Squibb's acquisition announcement, Mirati's shares concluded Monday's trading at $57.02, marking a decrease of $3.18 on the Nasdaq exchange. The announcement indicated that the transaction would have a dilutive impact on Bristol Myers Squibb.