GSK in talks to acquire US oncology biotech Nuvalent for more than $9 billion in largest deal in over a decade

GSK, the UK pharmaceutical group, is in discussions to acquire Nuvalent, a US oncology biotech, in a deal that sources value at between $9 billion and $10 billion. If completed, it would represent a premium of roughly 29% to 43% over Nuvalent's market capitalisation of nearly $7 billion at Monday's close, and would be the second largest acquisition in GSK's history — trailing only its 2014 asset swap with Novartis, in which it assumed control of the Swiss drugmaker's vaccines division in a transaction valued at $20 billion. The two companies have been in discussions with the aim of finalising a deal as early as this week, though both sides have yet to reach a final agreement and talks could still fall apart over last-minute hurdles. No advisers have been named publicly. The strategic logic centres on Nuvalent's pipeline of targeted cancer therapies. Its lead asset, neladalkib, a therapy targeting certain types of lung cancer, is currently under FDA review with a deadline of 27 November. The company also has a new drug application for zidesamtinib, for patients with ROS1-positive non-small cell lung cancer, also under FDA review. Analysts have estimated combined annual revenues of around $823 million for the two drugs in the 2029 financial year. The move marks a notable departure from the stated strategy of new GSK chief executive Luke Miels, who told investors in February that he would focus on transactions in the £2 billion to £4 billion range. GSK's share price has climbed roughly 29% since Miels' appointment as CEO-designate was announced in September, reflecting investor optimism about the company's direction under its new leadership.

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