British drugmaker GSK has agreed to acquire U.S.-listed oncology specialist Nuvalent in an all-cash deal valued at $10.6 billion.
The transaction values Boston-based Nuvalent at approximately $124 per share, representing a 40% premium to its last closing price.
Net of cash acquired, GSK’s aggregate investment is estimated at $9.4 billion, with the deal primarily funded through debt.
GSK has pledged to maintain its dividend and credit rating throughout the financing process, signaling confidence in its balance sheet.
The acquisition secures three key lung cancer assets, including late-stage ROS1 and ALK inhibitors zidesamtinib and neladalkib, as well as a HER2 inhibitor and a broader precision oncology pipeline.
The deal marks the first major acquisition for Chief Executive Officer Luke Miels and the company’s largest purchase in more than eight years.
Miels said the deal offers “significant new treatment options” for lung cancer patients and creates a platform to expand with Ris-Rez, GSK’s experimental antibody-drug conjugate in late-stage testing.
GSK sold its commercial oncology portfolio in 2015 as part of a broader restructuring but retained early-stage cancer assets before returning to the disease space in 2019.
The Nuvalent acquisition represents a major acceleration of that strategy, adding late-stage clinical assets that could deliver near-term commercial value.
The deal is expected to add to sales and operating profit in 2027 and contribute to core earnings per share growth by 2029.
Miels faces mounting pressure to convince investors that GSK can hit a revenue target of more than £40 billion by 2031 while navigating a pipeline transition.
A significant challenge looming over the company is the 2028 patent expiry of its HIV medicine dolutegravir, which currently generates substantial revenue.
The Nuvalent purchase is seen as a direct effort to offset that anticipated revenue loss by building a credible oncology growth engine.
Precision oncology has become one of the most competitive and high-value segments in biopharma, with lung cancer representing one of its largest commercial opportunities globally.
GSK’s expanded pipeline, anchored by the Nuvalent assets and Ris-Rez, positions the company to compete more aggressively in targeted lung cancer treatments over the coming years.
