GSK agrees to acquire Nuvalent for $10.6bn, strengthening its position in cancer drug development and expanding its oncology pipeline.
GSK has agreed to acquire US listed biotech company Nuvalent in a $10.6 billion all cash transaction, signalling a stronger push into oncology as the drugmaker reshapes its long-term growth strategy under chief executive Luke Miels.
The deal, GSK’s largest in several years, values Nuvalent at about $124 per share, representing a roughly 40% premium to its most recent closing price.
The acquisition marks a clear shift away from the smaller, incremental “bolt-on” deals previously favoured by Miels’ predecessor, Emma Walmsley. Since taking over earlier this year, Miels has been under pressure to reassure investors that GSK can exceed £40 billion in annual revenue by 2031 while also strengthening its late stage pipeline.
GSK said the purchase would expand its cancer treatment portfolio and support development of experimental therapies, including its antibody-drug conjugate programme Ris-Rez, which is currently in late-stage trials. The company has also highlighted oncology as a key growth driver as it works to offset future revenue pressure from the expected 2028 patent expiry of its HIV drug dolutegravir.
The British pharmaceutical group reported that oncology sales rose 43% in 2025 to just under £2 billion, though the segment still accounts for only about 6% of its total £32.7 billion revenue. Management is aiming to close the gap with rivals such as AstraZeneca, which generates a far larger share of its income from cancer medicines.
Under the terms of the deal, GSK’s net investment after cash acquired is estimated at $9.4 billion. The company expects the acquisition to begin contributing to sales and operating profit in 2027, with core earnings per share benefits projected from 2029.
GSK also said the transaction, expected to complete in the third quarter of 2026, will be financed through a mix of existing and new debt facilities alongside cash reserves.
It added that the deal is likely to cause only a low single-digit percentage dilution to core earnings per share between 2026 and 2028, while leaving its 2026 guidance of 7% to 9% core EPS growth unchanged.