GSK will acquire lung cancer biotech Nuvalent for $10.6bn in one of its largest ever deals, bolstering its pipeline with two late-stage assets the drugmaker believes have “multi-blockbuster potential”.
The all-cash transaction sees GSK pay $124 per share of Nuvalent, representing a 40% premium to the US-listed biotech’s last closing price of $88.49. The British drugmaker will fund the deal through new and existing debt facilities plus cash, with no resulting change to its full-year guidance.
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The high-value deal – second only in GSK’s history to a $20bn asset swap with Novartis in 2015 – marks a change in tack from new CEO Luke Miels. Since taking over from Emma Walmsley in January, Miels has largely conducted “bolt-on” acquisitions and licensing deals to reinforce the company’s pipeline.
Investors are keeping a close eye on GSK’s revenue roadmap given the looming patent expiry for HIV medicine Tivicay (dolutegravir) in 2028. The drug is part of the company’s combination tablet Dovato (dolutegravir/lamivudine), sales of which surged 22% to $3.6bn in 2025.
During the same year, GSK also saw high growth across its oncology portfolio, with sales swelling by 43% to around $2.7bn. This is an area that the drugmaker has doubled down on with the Nuvalent acquisition.
In a statement, Miels said: “Today’s acquisition is a multi-product deal, consistent with our approach to acquire assets that have clinically proven targets and meaningfully address an efficacy and/or tolerability gap.”
Nuvalent’s two late-stage assets are zidesamtinib and neladalkib, ROS1 and ALK inhibitors, respectively, for the treatment of non-small cell lung cancer (NSCLC). Buoyed by strong clinical data in patients, both assets have received breakthrough therapy and orphan drug designations from the US Food and Drug Administration (FDA). The agency is set to make a decision on zidesamtinib by mid-September, with a verdict on neladalkib expected by the following month. GSK will launch both products in 2026 if the FDA approves them, citing “multi-blockbuster potential.”
Miels added: “The two lead products are potential best-in-class assets that could launch this year if approved by the FDA and offer significant new treatment options to patients with two forms of non-small cell lung cancer.”
NSCLC accounts for around 85% of lung cancer cases. In 2022, lung cancer was the leading cause of cancer death, with an estimated 2.5 million cases and 1.8 million deaths, as per the World Health Organization (WHO).
GSK has set a 2031 target goal of £40bn ($53.5m) as it looks to maintain HIV growth despite loss of exclusivities and continue scaling its cancer portfolio. It is also seeking to bridge the gap to fellow British big pharma company AstraZeneca, which relied on oncology products for 44% of its total revenue in 2025. AstraZeneca showcased significant readouts for several of its late-stage assets at the recent Annual Society of Clinical Oncology (ASCO) 2026 annual meeting, reflecting the company’s depth in cancer offerings.
