GSK to acquire Nuvalent for $10.6 billion to expand lung cancer portfolio

GSK has announced that it has entered into an agreement to acquire Nuvalent, a Boston-based clinical-stage biopharmaceutical company, for $10.6 billion. The company said the acquisition is aligned with its strategy of acquiring assets with validated targets that address efficacy and/or tolerability limitations of existing standard-of-care therapies. The transaction includes three lung cancer products.

The acquisition includes zidesamtinib (NVL-520) and neladalkib (NVL-655), two next-generation selective ROS1 and ALK inhibitors for the treatment of non-small cell lung cancer (NSCLC). Both products have received FDA Breakthrough Therapy and Orphan Drug Designations and are currently under FDA review, with target decision dates of 18 September 2026 for zidesamtinib and 27 November 2026 for neladalkib.

Subject to FDA approval, GSK expects both products to launch in 2026. The acquisition also includes NVL-330, a HER2 inhibitor currently being evaluated in Phase I trials for HER2-altered NSCLC, as well as Nuvalent’s preclinical portfolio comprising multiple programmes developed through its precision medicine platform and clinical research capabilities.

Luke Miels, Chief Executive Officer, GSK, 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. 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.

The acquisition provides GSK with immediate new sales growth opportunities, improving profit contributions from 2027, and a platform in lung cancer for rapid expansion with Ris-Rez, our B7-H3 targeted ADC in phase III clinical development.”

According to GSK, data presented at the IASLC 2025 World Conference on Lung Cancer and the 2026 ASCO Annual Meeting demonstrated the profiles of zidesamtinib and neladalkib. The company stated that both products are designed to support longer treatment duration through target selectivity, treatment response, tolerability, blood-brain barrier penetration and broader coverage of ALK and ROS1 mutations.

GSK noted that ROS1- and ALK-altered NSCLC primarily affect non-smoking adults aged between 40 and 50 years. The company added that both products have accumulated treatment experience through clinical development programmes and patient assistance initiatives.

James Porter, PhD, Chief Executive Officer, Nuvalent, said: “Since our founding, we have leveraged our deep expertise in chemistry and structure-based drug design to develop a portfolio of novel, potentially best-in-class kinase inhibitors. Our close collaboration with leading physician-scientists and patient advocates has driven remarkable enrolment, accelerating development and building confidence in the clinical profile of these drugs. We’re excited that GSK has recognised the significant value these programmes can offer patients and shares our vision for practice-changing innovation. GSK’s proven track record, infrastructure, and expertise will support the successful commercialisation of zidesamtinib and neladalkib, as well as accelerate advancement of our broader discovery pipeline.”

Under the terms of the merger agreement, GSK will commence a tender offer within 10 business days to acquire all outstanding Class A and Class B common stock of Nuvalent at $124 per share in cash. The aggregate equity value of the transaction is estimated at $10.6 billion (£8.0 billion). Net of cash acquired, GSK’s aggregate investment is estimated at $9.4 billion (£7.1 billion).

The purchase price represents a 40 per cent premium to Nuvalent’s last closing share price and a 26 per cent premium to its 30-calendar-day volume-weighted average price (VWAP).

GSK stated that there is no change to its 2026 full-year guidance range of 7–9 per cent core operating profit and core earnings per share growth. The company expects the acquisition to contribute to revenue growth from 2027, support its ambition of achieving sales of more than £40 billion by 2031, and strengthen core operating profit through the dolutegravir loss of exclusivity period between 2028 and 2030.

The company expects accretion to core operating profit in 2027 and to core earnings per share in 2029, inclusive of synergies and reprioritisation. Assuming the transaction closes in the third quarter of 2026, GSK expects low single-digit percentage dilution to core earnings per share for FY2026, FY2027 and FY2028.

The transaction will be funded primarily through new and existing debt facilities and cash. GSK said it does not expect any impact on its credit rating and intends to maintain its investment-grade credit profile. The company also reiterated its commitment to the expected 70 pence dividend for 2026 and its progressive dividend policy thereafter.

The transaction remains subject to customary closing conditions, including the tender of a majority of Nuvalent’s outstanding Class A common stock and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act in the United States. Following completion of the tender offer, GSK expects to acquire the remaining shares through a second-step merger under Delaware law at the same price per share.

GSK will account for the transaction as a business combination and will assume Nuvalent’s existing revenue-sharing arrangements involving low-single-digit royalties payable to Royalty Pharma and Deerfield.