GSK Acquires Cancer Drug Developer Nuvalent for $10.6 Billion

GSK announced Tuesday it will acquire Cambridge, Massachusetts-based Nuvalent in a $10.6 billion all-cash transaction, paying $124 per share — approximately a 40% premium to Nuvalent's last closing price and a 26% premium to its 30-day average. Nuvalent, founded in 2017 by Harvard chemistry professor Matthew Shair and listed on Nasdaq in 2021, specializes in targeted therapies for non-small cell lung cancer driven by specific genetic mutations. Its two lead assets, neladalkib and zidesamtinib, are under FDA review with decisions expected in September and November respectively, and GSK CEO Luke Miels said both could launch this year if approved. Analysts at CGS International estimated the two drugs could generate combined annual revenues of $823 million by 2029, though some analysts, including those at Barclays, questioned whether the assets truly have mega-blockbuster potential. The deal is GSK's second-largest transaction in its history, trailing only a 2014 asset swap with Novartis, and marks a significant strategic shift for Miels, who had previously signaled a preference for smaller bolt-on deals in the £2–4 billion range. GSK said the acquisition will contribute to revenue growth from 2027 and help offset the HIV exclusivity headwind from mid-2028, with no change to its 2026 full-year guidance. The transaction comes amid a broader biotech dealmaking surge, with global biotech deals reaching $106 billion across 201 transactions so far in 2026, according to PitchBook data. Cancer death rates in major economies have declined sharply since peaking in the late 1980s and early 1990s, yet cancer remains a major and growing commercial priority for large pharmaceutical companies as populations age.