Source Credit : Portfolio Prints
U.K.-based pharmaceutical giant GSK has agreed to acquire U.S. biotech company Nuvalent for $10.6 billion, strengthening its lung cancer portfolio in what would be the British drugmaker's largest acquisition in more than a decade.
The all-cash transaction values Nuvalent at approximately $124 per share, according to a regulatory filing released by GSK on Tuesday, representing a premium of roughly 40% to Nuvalent's previous closing price.
The Financial Times first reported the deal earlier in the day. Nuvalent did not immediately respond to requests for comment.
"The acquisition provides GSK with immediate new growth opportunities, improving profit contributions from 2027 and establishing a strong platform in lung cancer alongside Ris-Rez, our B7-H3-targeted antibody-drug conjugate currently in Phase III development," Chief Executive Luke Miels said in a statement.
GSK said the transaction would not affect its financial guidance for 2026, including expectations for core operating profit and core earnings-per-share growth. The company expects the acquisition to begin contributing to revenue expansion from 2027 onward.
The deal ranks as the second-largest acquisition in GSK's history, behind its 2014 asset swap with Swiss pharmaceutical group Novartis, through which it gained control of Novartis' vaccines business in a transaction valued at roughly $20 billion.
The acquisition also marks a significant shift from GSK's recent strategy, which has focused primarily on smaller, targeted transactions.
Speaking to investors in February, Miels — who succeeded longtime CEO Emma Walmsley at the beginning of the year — indicated that the company would prioritize acquisitions in the £2 billion to £4 billion range that were "hiding in plain sight."
Since taking the helm, Miels has been under pressure to strengthen GSK's long-term growth outlook and address investor concerns surrounding the company's drug development pipeline. GSK shares have risen approximately 29% since his appointment was announced in September, reflecting growing confidence in the company's strategic direction.
A key attraction of the acquisition is Nuvalent's lead drug candidate, neladalkib, a targeted therapy for certain forms of lung cancer that is currently under review by the U.S. Food and Drug Administration. The agency is expected to make its decision by Nov. 27.
Nuvalent is also seeking regulatory approval for zidesamtinib, a treatment designed for patients with ROS1-positive non-small cell lung cancer, another difficult-to-treat cancer subtype.
Analysts at CGS International estimated in a January research note that, if approved, neladalkib and zidesamtinib could generate combined annual revenue of approximately $823 million by fiscal 2029.
The transaction comes amid a resurgence in biotechnology dealmaking as major pharmaceutical companies race to replenish drug pipelines ahead of looming patent expirations. Improving capital market conditions and renewed investor appetite for biotech have further accelerated acquisition activity.
According to PitchBook data, global biotech mergers and acquisitions have reached $106 billion across 201 transactions so far in 2026, putting the industry on course for its strongest year since the pre-pandemic boom.
For GSK, the Nuvalent acquisition represents both a major strategic investment in oncology and a clear signal that the company is prepared to pursue larger-scale deals to strengthen future growth, even as competition intensifies across the global pharmaceutical sector.
