British drugmaker GSK has agreed to acquire Boston-based cancer drug developer Nuvalent for $10.6 billion. The all-cash deal values Nuvalent at approximately $124 per share, a 40% premium to its last closing price. The acquisition is intended to boost GSK's lung cancer portfolio and rebuild its oncology franchise.
The deal gives GSK ownership of three drug candidates for lung cancer, two of which are currently under FDA review for approval this year. CEO Luke Miels stated that the acquisition offers significant new treatment options for patients and provides a platform to expand with Ris-Rez, an experimental antibody-drug conjugate in late-stage testing.
Net of cash acquired, GSK's aggregate investment is estimated to be $9.4 billion. The company expects the deal to add to sales and operating profit in 2027 and core earnings per share in 2029. Miels is tasked with hitting a revenue target of more than £40 billion by 2031 and navigating the 2028 patent expiry of the HIV medicine dolutegravir.
This acquisition comes amid a biotech dealmaking frenzy driven by a race to bolster pipelines, newly buoyant public markets, and looming patent cliffs.