GSK expands deal worth $ 10.6B for lung cancer treatment

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GSK plc and Nuvalent, Inc. announced that they have entered into a definitive agreement under which GSK will acquire Nuvalent, a clinical-stage biopharmaceutical company focused on creating precisely targeted therapies for patients with cancer, for $124 per share in cash. The transaction values Nuvalent at a total equity value of approximately $10.6 billion (£8.0 billion), or $9.4 billion net of cash acquired.

The acquisition instantly secures three lung ancer assets for GSK, accelerating its entry into the non-small cell lung cancer (NSCLC) market and establishing a therapeutic platform alongside its existing B7-H3 targeted antibody-drug conjugate (ADC), Ris-Rez.

The primary assets included in the deal consist of  Zidesamtinib(NVL-520),a late-stage, highly selective ROS1 inhibitor for NSCLC. It has received FDA Breakthrough Therapy and Orphan Drug designations. The US FDA review is underway with a target decision date of September 18, 2026.Neladalkib (NVL-655),a late-stage, highly selective ALK inhibitor for NSCLC, also holding FDA Breakthrough Therapy and Orphan Drug designations. The US FDA target decision date is November 27, 2026. NVL-330: A HER2 inhibitor currently in Phase I clinical trials for HER2-altered NSCLC.

Both zidesamtinib and neladalkib have demonstrated potential “best-in-class” clinical profiles, with data showing durable treatment responses, improved blood-brain barrier penetration to fight central nervous system metastases, and better tolerability than existing standards of care.

GSK will launch a tender offer within 10 business days to acquire all outstanding Nuvalent Class A and Class B common stock at $124 per share in cash. This represents a 40% premium over the last closing price. The deal will be funded through a mix of new and existing debt facilities plus cash, keeping GSK’s strong investment-grade credit rating intact.

The transaction is expected to be accretive to GSK’s sales and core operating profit starting in 2027,and accretive to core EPS by 2029.It will bring low single-digit percentage dilution to core EPS for 2026, 2027, and 2028.It is expected to protect core operating profits during the dolutegravir loss of exclusivity period (2028–2030) and build on GSK’s goal of reaching >£40 billion in sales by 2031.GSK remains committed to its expected 70p dividend for 2026.

Written by: Pragna Biswas

Graphics by:Mainak Sen

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