Key facts
- 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, a 40% premium to its last closing price.
- The deal aims to strengthen GSK's oncology pipeline, particularly in lung cancer treatments.
- GSK estimates its net investment, after acquired cash, to be $9.4 billion.
- The deal is expected to contribute to GSK's sales and operating profit from 2027 and core earnings per share from 2029.
- The acquisition adds Nuvalent's two lead lung cancer drugs, zidesamtinib and neladalkib, to GSK's pipeline.
GSK has agreed to acquire U.S.-listed cancer drug developer Nuvalent for $10.6 billion in an all-cash deal, marking its largest acquisition in over a decade and a strategic shift towards oncology under CEO Luke Miels. The deal values Nuvalent at approximately $124 per share, a 40% premium to its last closing price, and is expected to bolster GSK's pipeline, particularly in lung cancer treatments.
Miels stated the acquisition offers significant new treatment options for lung cancer patients and creates a platform to expand its experimental antibody-drug conjugate Ris-Rez. The deal adds Nuvalent's two lead lung cancer drugs, zidesamtinib and neladalkib, with U.S. decisions expected in September and November respectively. If approved, both could launch in 2026 and are believed to have multi-blockbuster potential.
GSK estimates its net investment, after acquired cash, to be $9.4 billion. The transaction is expected to add to sales and operating profit in 2027 and core earnings per share in 2029. Analysts from UBS noted the deal's size might surprise investors, given GSK's usual preference for smaller acquisitions, while Barclays analysts found strategic sense in adding late-stage cancer assets.