In one of the largest acquisitions in its history, GSK has agreed to acquire Nuvalent for $10.6 billion, significantly expanding its presence in oncology and securing two late-stage lung cancer assets that the company believes have multi-blockbuster potential.

Under the terms of the all-cash agreement, GSK will pay $124 per share for Nuvalent, representing a 40% premium over the biotech firm's last closing share price of $88.49. The acquisition will be financed through a combination of new and existing debt facilities along with cash resources, with GSK stating that the transaction will not alter its financial guidance for the year.

The deal marks a notable strategic shift under the leadership of Luke Miels, who took over as CEO earlier this year from Emma Walmsley. Since assuming the role, Miels has primarily focused on smaller bolt-on acquisitions and licensing agreements. The Nuvalent purchase, however, represents a major investment designed to accelerate GSK’s oncology ambitions.

“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,” Miels said in a statement.

Nuvalent’s value lies primarily in its two advanced targeted therapies for non-small cell lung cancer (NSCLC): zidesamtinib, a ROS1 inhibitor, and neladalkib, an ALK inhibitor. Both therapies have demonstrated encouraging clinical data and have received Breakthrough Therapy and Orphan Drug designations from the U.S. Food and Drug Administration.

Regulatory decisions for the two candidates are expected in the coming months. The FDA is scheduled to rule on zidesamtinib by mid-September, while a decision on neladalkib is anticipated in October. If approved, GSK plans to launch both medicines in 2026.