GSK plc (NYSE:GSK) on Tuesday agreed to acquire Boston-based biotech firm Nuvalent, Inc. (NASDAQ:NUVL) for $10.6 billion in cash as the British drugmaker seeks to strengthen its lung cancer portfolio.
Under the agreement, GSK will acquire all outstanding Nuvalent shares for $124 each in cash, representing a 40% premium to its last closing price of $88.49.
Nuvalent shares surged 38.7% to $122.76 in premarket trading following the announcement.
“The acquisition provides GSK with immediate new sales growth opportunities, improving profit contributions from 2027, and a platform in lung cancer…” GSK CEO Luke Miels said in a statement.
The deal marks GSK’s largest acquisition in more than a decade and its second-largest acquisition on record.
GSK said the acquisition is expected to contribute to revenue growth and be accretive to sales and core operating profit beginning in 2027, while boosting core earnings per share from 2029.
Lung Cancer Assets
The acquisition gives GSK three lung cancer assets in a single transaction, including Nuvalent’s lead drug candidates, zidesamtinib and neladalkib, which are being developed for certain forms of non-small cell lung cancer.
The deal also includes NVL-330, a Phase 1 HER2-targeted therapy, along with Nuvalent’s broader oncology pipeline.
“By combining our highly differentiated pipeline with GSK’s global development, commercial and operational capabilities, we have the opportunity to accelerate the delivery of important new medicines to patients around the world,” Nuvalent CEO James Porter said.
Pipeline Race
The acquisition comes as major pharmaceutical companies race to strengthen drug pipelines ahead of looming patent cliffs and increased competition.
Nuvalent’s lead asset, neladalkib, has previously generated encouraging clinical data. In November, the company reported a 31% response rate in previously treated patients with advanced ALK-positive non-small cell lung cancer. In a separate exploratory cohort of treatment-naive patients, the therapy achieved an 86% response rate.
The transaction also builds on GSK’s broader oncology push under Miels. In April, the company reported promising early-stage data for its experimental cancer therapy Mo-rez.
The deal also comes amid a broader wave of biotech acquisitions. According to PitchBook data, global biotech dealmaking has reached $106 billion across 201 transactions so far in 2026, putting the sector on track for its strongest year since the pre-pandemic peak.
Price Action: Nuvalent shares closed Monday at $88.49, down 2.70% for the session. NUVL shares had declined approximately 12.25% year-to-date and 15.82% over the previous six months.
Benzinga Edge Stock Rankings place Nuvalent in the 20.55th percentile for Momentum. The stock was showing positive price trends across short, medium and long-term time frames.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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