British pharmaceutical giant GSK said Tuesday it has reached an agreement to acquire cancer-drug developer Nuvalent for $10.6 billion, paying $124 a share in cash in a deal that strengthens its oncology pipeline with three lung-cancer drug candidates.
The $124-per-share offer represents a roughly 40% premium to Nuvalent’s closing price of $88.49 on Monday. GSK said its aggregate investment is estimated at $9.4 billion after accounting for the cash that Nuvalent brings to the transaction. The company plans to launch a tender offer to acquire Nuvalent shares.
Nuvalent’s portfolio includes two experimental drugs for lung cancer in late-stage development: zidesamtinib and neladalkib. Both are under review by the U.S. Food and Drug Administration for possible approval this year. A third candidate is in earlier-stage development. GSK said the deal accelerates its entry into lung-cancer treatment and opens new sales growth opportunities.
The acquisition continues GSK’s recent efforts to rebuild its oncology business, which the company has identified as a strategic priority. The deal is expected to contribute to revenue growth beginning in 2027, GSK said, and is designed to strengthen its core operating profit as the company faces a looming patent cliff for its blockbuster HIV drug dolutegravir over 2028 to 2030.
The transaction ranks among the larger pharmaceutical deals of the year and follows a pattern of drugmakers acquiring biotech developers to replenish pipelines ahead of patent expirations on existing top-selling products. MSI previously reported on a similar strategy on June 8, when Roche agreed to pay $700 million upfront in a deal valued at up to $2.3 billion for blood-cancer drug developer Nurix.