GSK is in advanced discussions to acquire oncology biotech Nuvalent for a deal valued between $9 billion and $10 billion, representing a premium of approximately 29% to 43% over Nuvalent's market capitalization of nearly $7 billion as of Monday's close.
This potential acquisition would be GSK's second largest in its history, following a $20 billion asset swap with Novartis in 2014, and signifies a shift from GSK's recent strategy of smaller transactions. GSK's new CEO, Luke Miels, has indicated a focus on larger deals to revitalize the company's drug pipeline, which has faced scrutiny from investors.
The acquisition comes at a time when the biotech sector is experiencing a surge in deal activity, with global biotech transactions reaching $106 billion in 2026, driven by factors such as patent expirations and a recovering public market.
Nuvalent's lead asset, neladalkib, is under FDA review, with potential annual revenues estimated at $823 million by 2029 if approved, which could further enhance GSK's oncology offerings and market position