The third largest biotechnology company may soon become a bit larger. Celgene, headquartered in Summit, New Jersey, announced Wednesday that it intends to buy Abraxis BioScience for $2.9 billion.

Abraxis, based in Los Angeles, is best known for its cancer drug Abraxane, a form of Taxol that is bound to the protein albumin and, the company says, works better than Taxol alone. And unlike Taxol, Abraxane doesn’t have to be dissolved in toxic solvents. Abraxane is on the market for metastatic breast cancer, and in late stage clinical trials for advanced lung cancer, skin cancer, and pancreatic cancer.

The purchase is a significant step forward in establishing Celgene as “a major solid tumour oncology company,” CEO Bob Hugin told investors on Wednesday, but there are concerns that the deal is a bit pricey, an analyst told Bloomberg BusinessWeek.

It is also a significant step forward in making the richest man in the drug business (according to Forbes) richer still. Patrick Soon-Shiong, the surgeon who owns 82.4% of Abraxis, is a controversial figure in the industry – the NY Times says he’s been sued by a few business partners, including his own brother – but no one can question his financial success. The sale of Abraxis is expected to earn him $2.4 billion

Celgene anticipates the purchase to be completed in the fourth quarter of this year.