GlaxoSmithKline headquarters in London on Jan. 17, 2022.
Hannah McKay Reuters
UK pharmaceutical group GSK struck a deal to acquire a US-based drugmaker Nuvalent for $10.6 billion to bolster its lung cancer pipeline, in what could be the British drugmaker’s biggest acquisition in more than a decade.
The all-cash deal values Nuvalent at about $124 per share, according to a GSK filing on Tuesday, representing a 40% premium to its last closing price.
The Financial Times reported on this earlier on Tuesday. Nuvalent did not respond to a request for comment.
“The acquisition provides GSK with new opportunities for rapid sales growth, improved profit margins from 2027, and the lung cancer platform to rapidly expand with Ris-Rez, our B7-H3-targeted ADC (antibody-drug conjugate) in phase III clinical development,” GSK CEO Luke Miels said in a statement.
There is no change in GSK’s full-year 2026 guidance for core operating profit and core earnings per share growth, the company said, expecting the acquisition to contribute to revenue growth from 2027.
Data for GSK Plc
The deal is the second largest in GSK’s history, following a 2014 asset swap with Novartis in which it took control of the Swiss drugmaker’s vaccines division for $20 billion.
It may also mark a significant departure from the company’s focus on small businesses in recent years.
Miels, who took over the job from long-time boss Emma Walmsley earlier this year, told investors in February that he would focus on sales in the £2 billion ($2.67 billion) to £4 billion range that had been “clearly hidden.”
Miels has been tasked with overhauling a company that has struggled to ease investor concerns about its drug pipeline. GSK’s share price has risen nearly 29% since Miels’ hiring was announced in September.
Nuvalent’s lead product, neladalkib — a treatment that targets certain types of lung cancer — is currently under FDA review with a Nov. 27.
The company also has a new application for the drug zidesamtinib, for patients with ROS1-positive non-small cell lung cancer, under review by the FDA.
Analysts at CGS International estimate that if approved, neladalkib and zidesamtinib could generate combined annual revenue of $823 million in fiscal year 2029, in a January letter to investors.
The deal also comes amid a frenzy in biotech, driven by looming patent cliffs, booming public markets and a race by pharma giants to strengthen their pipelines. Biotech deals worldwide reached $106 billion across 201 deals so far in 2026, according to PitchBook data, putting the sector on track for its strongest year since its pre-pandemic peak.
– CNBC’s Elsa Ohlen contributed to this report.
