GSK boosts lung cancer portfolio with $10.6 billion Nuvalent takeover

GSK has agreed to acquire U.S.-listed cancer drug developer Nuvalent in a $10.6 billion all-cash deal, marking the British drugmaker’s largest transaction in years and signaling a stronger strategic push into oncology under new CEO Luke Miels.

The agreement values Nuvalent at approximately $124 per share, representing a 40% premium to its last closing price.

The deal marks a shift from GSK’s recent focus on smaller “bolt-on” acquisitions pursued under Miels, who took over leadership earlier this year from Emma Walmsley.

Miels has been tasked with convincing investors that the company can achieve more than £40 billion in annual revenue by 2031, while strengthening its drug pipeline and managing the expected 2028 patent expiration of its HIV treatment dolutegravir.

The acquisition is expected to support GSK’s long-term sales targets, the company said.

BUILDING SCALE IN CANCER TREATMENTS

Miels said the deal would provide “significant new treatment options” for lung cancer patients and help establish a platform to expand GSK’s experimental antibody-drug conjugate Ris-Rez, which is currently in late-stage development.

He has pledged to accelerate the development of new medicines and prioritize assets that strengthen GSK’s late-stage pipeline. The company has completed two transactions this year since his appointment.

In 2025, GSK reported strong growth in its oncology portfolio, with sales rising 43% year-on-year to just under £2 billion. Oncology now accounts for roughly 6% of GSK’s total £32.7 billion in annual sales.

The company is also working to close the gap with London-listed rival AstraZeneca, whose cancer drug portfolio represented 44% of total sales last year.

Excluding acquired cash, GSK’s net investment is estimated at $9.4 billion, the company said. It added that the deal is expected to contribute to sales and operating profit in 2027 and boost core earnings per share by 2029.

The transaction is expected to close in the third quarter of 2026 and will be financed primarily through a combination of new and existing debt facilities, along with cash resources. GSK said the acquisition may result in low single-digit dilution to core earnings per share between 2026 and 2028.

The company also maintained its full-year 2026 guidance, projecting core earnings per share growth of 7% to 9%.

GSK bets on oncology with $10.6 billion Nuvalent takeover

-Reporting by Dhanush Vignesh Babu and Yadarisa Shabong in Bengaluru and Bhanvi Satija in London; Editing by Mrigank Dhaniwala and Louise Heavens/Reuters