British pharmaceutical giant GSK (GSK) has sealed an all-cash deal to acquire US oncology biotech firm Nuvalent (NUVL) for a total value of $10.6 billion. Under the terms of the agreement, GSK will offer $124 per Nuvalent share, representing a 40% premium to the company’s latest closing price. The deal triggered sharp moves across both stocks: Nuvalent surged nearly 39% in US premarket trading, while GSK’s London-listed shares dropped 2.6%.
Nuvalent focuses exclusively on targeted therapies for lung cancer. Its two lead late-stage candidates for non-small cell lung cancer are currently under FDA review and are expected to hit the market this year upon approval, with blockbuster sales potential. The company also owns an early-stage drug and a full pipeline of preclinical programmes. The acquisition will rapidly expand GSK’s footprint in the lung cancer treatment segment and strengthen its overall oncology portfolio.
This transaction stands as GSK’s largest acquisition in more than a decade, marking a clear shift from its recent strategy of pursuing only small-scale deals. The strategic move is designed to offset looming revenue headwinds, as GSK’s top-selling HIV medicine will lose patent exclusivity starting in 2028. The newly acquired pipeline is expected to deliver fresh growth drivers for the group. GSK confirmed it will keep its full-year 2026 guidance for core operating profit and core earnings per share unchanged, with contributions to group revenue projected to start in 2027.
The healthcare sector is currently seeing a robust wave of biopharma mergers and acquisitions, as drugmakers expand pipelines and brace for upcoming patent expirations. Industry analysts acknowledge that the takeover adds clinically de-risked late-stage assets to GSK’s oncology business and will help cushion the blow from the 2028 patent cliff. Meanwhile, some analysts have raised questions over the long-term sales upside of Nuvalent’s two flagship therapies.
Subject to routine regulatory approvals, the acquisition is set to close in the third quarter of 2026. GSK will fund the purchase using existing cash and debt facilities. The company stated the deal will not affect its credit rating or established dividend policy.
