• GSK is buying Nuvalent in a deal valued at $10.6 billion, or $124 per share.
• The transaction notably includes three lung cancer products: Zidesamtinib, Neladalkib, and NVL-330.
• The deal will be funded through new and existing debt facilities, plus cash, and will boost certain financial metrics in 2027 but not in 2026.

Shares of Nuvalent, Inc. (NUVL) surged in early premarket trading on Tuesday after GSK plc (GSK) said it would buy the Boston-based oncology company in a $10.6 billion deal, as the British drug giant bolsters its portfolio with highly promising lung cancer therapies.

At the time of writing, NUVL stock was up nearly 39% premarket, and on track for a new record high. It was also among the top percentage gainers under equities on Stocktwits.

Why GSK Wants Nuvalent

GSK said the Nuvalent acquisition aligns with its strategy of snapping up firms with proven science that manufacture better, safer cancer therapies than what’s available on the market.

Through this deal, GSK will notably gain access to three products aimed at treating non-small cell lung cancer: Zidesamtinib, Neladalkib, and NVL-330. The first two therapies are in late-stage trials, while the last is currently in early-stage trials. 

Zidesamtinib and Neladalkib have already been granted “Breakthrough Therapy” and 
“Orphan Drug” designations by the U.S. Food and Drug Administration, with target decisions expected in September and November this year. 

“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,” said GSK CEO Luke Miels. “The two lead products are potential best-in-class assets that could launch this year if approved by the FDA and offer significant new treatment options to patients with two forms of non-small cell lung cancer.”

Additionally, GSK will assume Nuvalent's preclinical portfolio, which comprises multiple programs, and its existing revenue-sharing arrangements of low-single-digit royalties payable to Royalty Pharma and Deerfield.

Deal Financing Details 

GSK will acquire all of Nuvalent's outstanding shares via a tender offer within 10 business days for $124 a pop in cash, representing a 40% premium to NUVL stock’s last closing price on Monday. On a net-of-cash basis, the deal value is $9.4 billion.

The deal will be funded through new and existing debt facilities, plus cash, and will boost certain financial metrics in 2027 but not in 2026.

From next year, the Nuvalent deal will contribute to GSK’s revenue growth, be incremental to the total company’s existing ambition for sales of more than £40 billion ($53.5 billion) by 2031, and will be accretive to core operating profit. However, it will result in low-single-digit percentage dilution to core earnings per share until 2028 and will contribute to the metric only from 2029. 

The deal is expected to close in the third quarter this year.

What Retail Thinks About NUVL and GSK

On Stocktwits, retail sentiment about NUVL remained ‘bullish,’ while it turned ‘neutral’ from ‘bearish’ on GSK over the last 24 hours.

NUVL stock has fallen roughly 12%, while GSK has risen more than 3% so far this year, underperforming the S&P 500.

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