GSK Boosts Cancer Portfolio, Acquires Nuvalent for $10.6 Billion

GSK has agreed to acquire U.S.-listed cancer drug developer Nuvalent for $10.6 billion, its largest transaction in more than a decade. The move signals a strategic pivot under new Chief Executive Luke Miels, as the British company intensifies its focus on oncology.

The all‑cash deal values Nuvalent at roughly $124 per share, a 40 % premium to its last closing price. Shares in Nuvalent, which develops lung‑cancer drugs, were up about 38 % at $122.10 in U.S. pre‑market trade. GSK shares fell more than 3 % in early London trading.

Unlike GSK’s usual smaller “bolt‑on” acquisitions, this purchase reflects Miels’ ambition to convince investors that the drugmaker can reach a bold target of £40 billion in annual revenue by 2031, a Reuters report said.

“It’s larger than the bracket because it was unusual,” Miels told reporters on a call, adding that GSK’s sales targets were not tied to the acquisition. “It’s a multi‑product deal… So it’s essentially three products in one.”

UBS analysts noted that investors might be surprised by the deal’s size, given GSK’s typical preference for acquisitions between $2 billion and $4 billion. After an initial jump at the start of 2026, GSK’s shares are up about 2 % year‑to‑date.

Miels said the acquisition offers “significant new treatment options” for lung‑cancer patients and creates a platform to expand its experimental antibody‑drug conjugate Ris‑Rez, now in late‑stage testing.

He has pledged to accelerate the development of new medicines and target assets that strengthen GSK’s late‑stage pipeline while managing the 2028 patent expiry of its key HIV medicine dolutegravir. GSK has closed two smaller deals this year since Miels took over.

In 2025, GSK saw notable growth across its oncology portfolio, with sales income in the disease area rising 43 % to just under £2 billion compared to 2024. Oncology accounts for about 6 % of GSK’s £32.7 billion in total sales.

Barclays analysts said the Nuvalent deal made strategic sense because it adds late‑stage cancer assets in an area where GSK already operates, and could help offset the expected HIV patent cliff if approvals come on time.

GSK is also seeking to close the gap with London‑listed rival AstraZeneca in cancer drugs. Oncology accounted for 44 % of the Anglo‑Swedish group’s total sales last year.

Net of cash acquired, GSK’s aggregate investment is estimated at $9.4 billion, the British company said, adding that the deal is expected to boost sales and operating profit in 2027 and core earnings per share in 2029.

Miels said GSK had tracked Nuvalent for over a year after it was first identified by its oncology and business development teams, and was internally known as “Nashville.” Nuvalent’s data at a major medical conference last week convinced him that GSK should pursue the deal, he said.

The deal adds Nuvalent’s two lead lung‑cancer drugs, zidesamtinib and neladalkib, to GSK’s basket of products that are close to being launched. U.S. decisions for the drugs are expected in September and November this year.