GSK Acquires Nuvalent for $10.6 Billion to Boost Oncology

GSK has announced the acquisition of Nuvalent for $10.6 billion, representing its largest deal in a decade and a strategic shift under new CEO Luke Miel. The cash deal values Nuvalent at approximately $124 per share, a 40% premium over its last closing price.

Nuvalent is developing lung cancer drugs, with GSK's shares slipping 3% in early London trading following the announcement. This acquisition marks a departure from GSK's usual strategy of smaller deals, as Miel aims to convince investors of the company's potential to achieve $40 billion in annual revenue by 2031.

The deal is expected to add significant treatment options for lung cancer patients and strengthen GSK's late-stage pipeline, particularly as it faces a patent expiration for its key HIV medication, dolutegravir, in 2028. GSK's oncology sales grew 43% to $2 billion, accounting for 6% of its total sales of $32.7 billion.

The acquisition is anticipated to enhance GSK's operational profit by 2027 and core earnings per share by 2029.