GSK to buy cancer drugmaker Nuvalent for $10.6B

GSK ↘2.84% agreed to acquire Nuvalent ↗0.06% at $124 per share, a 40% premium, in a deal expected to close in Q3 2026.gsk
The acquisition adds two lung cancer drugs awaiting FDA decisions this year, aimed at offsetting future revenue losses from generic competition.fiercebiotech
GSK shares fell sharply in London, dragging the FTSE 100 lower, while Deutsche Bank ↗0.63% maintained a Neutral rating on the stock.morningstar

GSK Acquires Nuvalent for $10.6 Billion, Dragging FTSE 100 Lower

GSK announced on Tuesday that it will acquire Boston-based cancer drugmaker Nuvalent for $10.6 billion in an all-cash deal, marking the British pharmaceutical giant’s largest acquisition in more than a decade. GSK shares fell roughly 3% in early London trading, making the stock the biggest drag on the FTSE 100, which slipped 0.3% to around 10,341 points by mid-morning.globalbankingandfinance

The deal values Nuvalent at $124 per share, a 40% premium to its last closing price on Monday, according to a GSK press release. Net of cash acquired, the aggregate investment comes to approximately $9.4 billion. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and a majority shareholder tender.rttnews

Lung Cancer Pipeline in Focus

The acquisition brings GSK two near-approval therapies for non-small cell lung cancer. The FDA is set to rule on Nuvalent’s ROS1 inhibitor zidesamtinib in September and its ALK inhibitor neladalkib in November. GSK said it sees “multiblockbuster potential” in both drugs, which could challenge existing treatments from Pfizer and Roche.fiercebiotech

The deal is designed to offset revenue pressures GSK expects as generics erode sales of a key HIV drug between 2028 and 2030, according to Fierce Biotech. GSK said it anticipates the acquisition will be accretive to sales and core operating profit from 2027, according to Reuters.reuters

Market Reaction and Analyst Response

The FTSE 250 edged up 0.2% on Tuesday even as the blue-chip index fell, suggesting the sell-off was concentrated around GSK. Deutsche Bank analyst Emmanuel Papadakis maintained a Neutral rating on GSK with a price target of 1,900 pence following the announcement.morningstar

GSK confirmed there is no change to its 2026 full-year guidance range of 7-9% core operating profit and core EPS growth. The company said it will maintain a strong investment-grade credit rating and start a tender offer to acquire all outstanding Nuvalent shares within 10 business days.investing