GSK plc (GSK) has entered into an agreement to acquire Nuvalent, Inc (NUVL), a Boston-based clinical-stage biopharmaceutical company developing targeted cancer therapies, in a transaction valued at $10.6 billion (£8.0 billion). The deal strengthens GSK's oncology pipeline with late-stage assets aimed at non-small cell lung cancer.
Nuvalent's portfolio includes Zidesamtinib (NVL-520) and Neladalkib (NVL-655), next-generation ROS1 and ALK inhibitors currently under FDA review, with decision dates set for September 18, 2026, and November 27, 2026. Both candidates have Breakthrough Therapy and Orphan Drug Designations and are expected to launch later this year, subject to approval. A third candidate, NVL-330, is in early-stage trials targeting HER2-altered NSCLC.
Under the terms, GSK will commence a tender offer to acquire all outstanding Nuvalent shares at $124 per share in cash, representing a 40% premium to the last closing price. Net of cash acquired, the investment totals $9.4 billion.
GSK said its 2026 outlook remains unchanged, with profit and earnings growth still expected at 7-9%. The Nuvalent deal is projected to start adding revenue from 2027 and support profit through the dolutegravir loss of exclusivity period (2028-2030). The company expects operating profit to benefit in 2027 and EPS in 2029, through near-terms results will see low single-digit dilution though FY2026-2028.
The company also reaffirmed its planned 70p dividend for 2026 and its commitment to a progressive dividend policy thereafter.
Executives from both companies highlighted the strategic fit. GSK CEO Luke Miels noted that acquisition provides "significant new treatment options" and a platform for expansion in lung cancer alongside GSK's B7-H3 antibody-drug conjugate Ris-Rez. Nuvalent CEO James Porter emphasized the alignment with GSK's infrastructure and commercial expertise to advance its precision oncology pipeline.
The transaction, expected to close in Q3 2026, is subject to customary conditions, including regulatory approvals and majority shareholder tender. Advisors include Leerink Partners and Citigroup for GSK, and Centerview Partners and Jefferies for Nuvalent.
This acquisition positions GSK to expand its oncology footprint with assets that could reshape treatment options for patients with genetically defined forms of lung cancer.
GSK has traded between $35.45 and $61.70 over the past year. The stock closed Monday's trading at $50.64, down 1.71%. During after-hours trading, the stock is at $50.53, down 0.22%.
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