GSK to Acquire Boston-based Nuvalent for $10.6 Bn to Expand Cancer Care Portfolio
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The transaction will be funded primarily from new and existing debt facilities, along with available cash resources.
Pharma giant GSK has inked an agreement to acquire Boston-based clinical-stage biopharmaceutical company Nuvalent in a transaction deal worth $10.6 billion aimed at expanding its cancer drug portfolio.
The acquisition is expected to add multiple clinical-stage assets currently under evaluation alongside Nuvalent’s preclinical portfolio of investigational oncology programmes.
The deal also includes three products for lung cancer, including zidesamtinib (NVL-520) and neladalkib (NVL-655), which are currently under FDA review for non-small cell lung cancer, as well as NVL-330, a Phase I investigational therapy targeting HER2-altered NSCLC, in a single transaction.
Nuvalent is a clinical-stage biopharmaceutical company focused on developing targeted therapies for cancer patients.
The company's research pipeline includes precision medicines designed to address resistance mechanisms that can emerge during cancer treatment. Its lead programmes are focused on cancers driven by alterations in the ROS1 and ALK genes, which are associated with certain forms of lung cancer and other solid tumours.
Commenting on the development, 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,” he added.
Under the terms of the agreement, GSK is set to launch a tender offer to acquire all outstanding shares of Nuvalent's Class A and Class B common stock at $124 per share in cash.
The aggregate equity value of the transaction is estimated to be $10.6 billion (£8.0 billion). According to the company, the offer represents a 40% premium to the last closing price and a 26% premium to the 30-day volume-weighted average price.
Meanwhile, GSK's aggregate investment is estimated at a value of $9.4 billion, with the transaction expected to close in the third quarter of 2026 and is subject to antitrust clearance and customary closing conditions.
As per reports, the transaction will be funded primarily from new and existing debt facilities along with available cash resources.
The company indicated that it does not anticipate any impact on its investment-grade credit rating and expects to retain financial flexibility for future business development activities
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