Key facts
- GSK has agreed to acquire Nuvalent for $10.6 billion in an all-cash transaction.
British pharmaceutical giant GSK has agreed to acquire U.S.-based cancer drug developer Nuvalent for $10.6 billion in an all-cash deal. The acquisition aims to strengthen GSK's oncology pipeline, particularly in lung cancer treatments.
The acquisition marks GSK's largest purchase in eight years and is intended to bolster its oncology pipeline, particularly in lung cancer treatments, as the company faces upcoming patent expirations on key drugs.
British pharmaceutical giant GSK has agreed to acquire U.S.-based cancer drug developer Nuvalent for $10.6 billion in an all-cash deal. The acquisition values Nuvalent at approximately $124 per share, representing a 40% premium over its last closing price, and aims to enhance GSK's oncology pipeline, particularly in lung cancer treatments. GSK CEO Luke Miels is working to convince investors that the company can meet its 2031 revenue target of over £40 billion, strengthen its drug pipeline, and navigate the upcoming 2028 patent expiry of its HIV medicine dolutegravir. Miels stated the deal provides "significant new treatment options" for lung cancer patients and a platform for expansion with Ris-Rez, GSK's experimental antibody-drug conjugate. The British company estimates its net investment, after accounting for acquired cash, to be $9.4 billion, with the deal expected to contribute to sales and operating profit from 2027 and core earnings per share from 2029.