Nuvalent (NUVL) Stock Jumps 39% After GSK’s $10.6 Billion Takeover Bid

TLDR

• GSK agreed to acquire Nuvalent for $10.6 billion in an all-cash deal at $124 per share
• The offer is a 40% premium over Monday’s closing price
• Nuvalent stock jumped 39% to $122.90 in early trading Tuesday
• The deal gives GSK three non-small cell lung cancer programs, including two awaiting FDA decisions later in 2026
• The transaction is GSK’s largest acquisition in more than a decade

GSK announced Tuesday it will acquire Boston-based cancer drug developer Nuvalent for $10.6 billion in cash, sending Nuvalent stock up 39% to $122.90.

Nuvalent, Inc., NUVL

The offer price of $124 per share represents a 40% premium to where Nuvalent closed on Monday. GSK’s American depositary receipts traded flat at $50.65, while GSK’s London-listed stock dropped more than 3%.

The deal is GSK’s largest acquisition in over a decade, marking a major shift in strategy for the British pharma giant.

Through the acquisition, GSK gains three non-small cell lung cancer programs. The two lead assets are zidesamtinib, which targets ROS1 mutations, and neladalkib, an ALK inhibitor.

Both drugs are in late-stage development and are already under FDA review. Regulatory decisions are expected on September 18 and November 27, 2026, respectively.

A third asset, NVL-330, is a HER2 inhibitor currently in phase I trials.

A Strategic Pivot Into Oncology

GSK had previously swapped its oncology business for Novartis’ vaccines division back in 2014. This deal marks a clear return to cancer as a core focus area.

Miels, who took over as CEO at the start of 2026, had previously signaled to investors a preference for deals in the £2 billion to £4 billion range. He argued the higher price tag was justified because the acquisition effectively purchases three distinct products through a single transaction.

Net of cash acquired, GSK’s total investment is estimated at $9.4 billion. The deal will be funded through new and existing debt facilities plus cash, with no expected impact on GSK’s credit rating.

What It Means for GSK’s Financials

GSK said its existing 2026 full-year guidance remains unchanged. The company expects the deal to start lifting revenue and core operating profit from 2027, with a positive impact on core earnings per share following in 2029.

GSK also said the acquisition will help strengthen core operating profit through the dolutegravir loss of exclusivity period running from 2028 to 2030.

The deal is expected to accelerate GSK’s entry into lung cancer and create a platform for further expansion alongside Ris-Rez, its B7-H3 antibody-drug conjugate currently in phase III development.

Subject to regulatory approvals, including clearance under the Hart-Scott-Rodino Act, both companies expect to close the transaction before the end of Q3 2026.

The FDA decisions on Nuvalent’s two lead drugs are scheduled for September 18 and November 27, 2026.

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