Investing.com — shares fell over 2% on Tuesday after the British drugmaker agreed to buy Boston-based for $10.6 billion.
The deal, announced June 9, values Nuvalent at $124 per share, a 40% premium to its last closing price and to its 30-day volume-weighted average price. After accounting for cash acquired, GSK’s net investment stands at $9.4 billion.
GSK chief executive Luke Miels on the media call defended the price, saying the deal size was “larger than usual” because it was “unusual” to get multiple products in one deal, adding he was “convinced that this was a deal that we needed to do.” Miels also said GSK is working to offset the cost of servicing the debt from deal financing.
The acquisition centres on three lung cancer assets. Zidesamtinib (NVL-520) and neladalkib (NVL-655) are highly selective ROS1 and ALK inhibitors for non-small cell lung cancer, both carrying FDA Breakthrough Therapy and Orphan Drug designations.
The FDA has set target decision dates of 2026 for both, zidesamtinib first, with neladalkib following on Nov. 27. A third asset, NVL-330, targets HER2-altered NSCLC and remains in Phase I trials, per the filing.
Nuvalent chief executive James Porter said GSK’s “proven track record, infrastructure” would support “successful commercialisation of zidesamtinib and neladalkib.”
GSK said the acquisition will begin contributing to revenue from 2027 and is expected to be accretive to core operating profit and core earnings per share by 2029, inclusive of synergies and reprioritisation.
Miels said GSK does not need the Nuvalent deal to achieve its £40 billion sales target by 2031, though the filing states the acquisition is expected to strengthen the company’s ambition for sales of more than £40 billion by 2031.
GSK confirmed there is no change to its 2026 full-year guidance of 7% to 9% core operating profit growth, and flagged a low-single-digit percentage dilution to core EPS for 2026, 2027 and 2028.
The company will also pay low-single-digit royalties to Royalty Pharma under existing revenue-sharing arrangements.
The transaction will be funded primarily through new and existing debt facilities. GSK said it will maintain a strong investment-grade credit profile and reiterated its 70 pence expected dividend for 2026.
The deal is structured as a tender offer for all outstanding Class A and Class B Nuvalent shares, to be launched within 10 business days, with a second-step merger at the same price to follow. Closing remains subject to antitrust clearance under the Hart-Scott-Rodino Act.