Amgen Inc. on Thursday announced it will buy a 20.5 percent stake in Beigene, a Chinese cancer biotech company, for $2.7 billion in cash.

The Thousand Oaks biotech company acquired Beigene to increase its oncology presence in China, Amgen said in a statement, adding that China is the world’s second-largest pharmaceutical market.

Under the agreement, Beigene will commercialize Amgen drugs Xgeva, Kyprolis and Blincyto in China and collaborate to advance 20 medicines from Amgen’s pipeline around the world.

Beigene has a 700-person commercial organization and 600-person clinical development team.

“With its extensive commercial and clinical capabilities within China and a commitment to global quality standards, BeiGene is the ideal strategic collaborator as we seek to make a meaningful difference in the lives of millions of cancer patients in China and around the world,” Robert Bradway, chief executive of Amgen, said in a statement.

The transaction is expected to close in early 2020, subject to Beigene shareholder approval and other closing conditions. Goldman Sachs & Co. is acting as exclusive financial advisor for the deal, and Los Angeles-based Latham and Watkins law firm serves as legal advisor to Amgen.

Shares of Amgen (AMGN) closed Thursday up $2.37, or 1.12 percent, to $213.25 on the Nasdaq.