Celgene Corp. is set to acquire privately held biotechnology firm Delinia Inc. for an initial payment of $300 million.

Delinia's shareholders are eligible for an additional $475 million in contingent payments upon achievement of certain development, regulatory and commercial milestones.

The acquisition will expand Celgene's inflammation and immunology pipeline through Delinia's lead program, DEL106, a novel IL-2 mutein Fc fusion protein that helps in the restoration of the immune system.

The transaction is expected to close in the first quarter of 2017.