British pharmaceutical giant AstraZeneca has agreed to buy California-based biotech company ZS Pharma for $2.7 billion in cash, in a bid to come up with a drug to treat deadly blood disease.

Fortune reported that the move would outbid its rival Swiss company Actelion from coming up with a treatment that would cure the deadly blood disease called hyperkalaemia. ZS Pharma specializes on a proprietary ion-trap technology, which is used to treat high potassium levels, which hyperkalaemia is. High potassium is typically associated with chronic kidney disease, as well as heart failure. ZS Pharma's ZS-9 drug is already approved by the US Food and Drug Administration. The company is planning to get approval from the European authorities before putting it on the market. AstraZeneca expects it to hit global peak sales of more than $1 billion.

In a report by The Irish Times, AstraZeneca's chief executive Pascal Soriot said, "This acquisition complements our strategic focus on cardiovascular and metabolic disease by adding a potential best-in-class treatment to our portfolio of innovative medicines."

According to The New York Times, the deal is just another pharmaceutical acquisition in a year filled with mergers. Drug makers are buying other pharmaceutical companies hoping to come up with the next hit product that would treat late-stage conditions. 18 months ago, Pfizer tried to acquire AstraZeneca in a $107 billion deal.

The deal comes as AstraZeneca is about to lose exclusivity of its popular cholesterol treatment, Crestor, in the US next year. The company will also be losing patent protection on its Nexium antacid.

ZS Pharma chief executive said, "This agreement will allow us to maximize the potential of ZS-9, drawing on AstraZeneca's longstanding expertise in developing and commercializing medicines for cardiovascular and metabolic diseases."

ZS Pharma's board of directors unanimously approved the transaction. AstraZeneca is going to pay $90 a share. This translates to 42 percent premium over Thursday's closing price.