GSK Buys Lung Cancer Drugmaker Nuvalent for $10.6B

GSK Plc is set to acquire Nuvalent Inc. in a substantial $10.6 billion deal, significantly enhancing its oncology franchise. The British pharmaceutical giant is gaining a biotech firm specializing in developing advanced treatments for lung cancer. This strategic move is the first major acquisition for GSK's CEO, Luke Miels, as he works to revitalize the company's drug development pipeline.

Nuvalent's pipeline includes small molecule therapies precisely targeting cancer, with two leading drugs in late-stage trials for non-small-cell lung cancer. These treatments focus on mutations typically found in non-smokers and are awaiting regulatory decisions from the US Food and Drug Administration later this year. If approved, these could become significant revenue generators for GSK.

The transaction, valued at $124 per share, represents a 40% premium over Nuvalent's closing price on the previous day. GSK anticipates the deal will contribute to revenue growth starting in 2027 and does not expect it to impact current year guidance. Funding for the acquisition will primarily come from debt facilities and existing cash, with no anticipated effect on GSK's credit rating. The deal is expected to be finalized by the third quarter, contingent on regulatory approvals.