GSK Stock Drops 3% After Splashing $10.6B on Cancer Biotech Nuvalent

TLDR

• GSK agreed to buy Nuvalent for $10.6 billion, paying $124 per share in cash — a 40% premium to Monday’s close
• GSK stock fell as much as 3% in early London trading following the announcement
• Two of Nuvalent’s lead drugs treat non-small-cell lung cancer and are awaiting FDA decisions later this year
• The deal is expected to add to revenue and operating profit in 2027, with core EPS contribution from 2029
• GSK says the acquisition does not affect its 2026 full-year guidance of 7–9% core EPS growth

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GSK has agreed to acquire Nuvalent in an all-cash deal worth $10.6 billion, paying $124 per share — a 40% premium to where Nuvalent closed on Monday.

GSK plc, GSK

GSK stock dropped as much as 3% in early London trading after the deal was announced Tuesday. The stock is still up around 23% over the past 12 months.

Nuvalent’s stock had already been under pressure this year, down about 12% before the deal, giving it a market cap of close to $7 billion.

The acquisition is the largest deal under new CEO Luke Miels, who took over from Emma Walmsley at the start of 2026. It’s his second deal this year, following a $2.2 billion agreement in January to buy Rapt Therapeutics.

The deal will be funded mainly through new and existing debt, plus cash on hand. GSK said it won’t affect its credit rating.

Two Late-Stage Drugs in the Pipeline

Nuvalent’s two lead drugs target non-small-cell lung cancer patients with specific genetic mutations — mutations that typically affect non-smokers. Both are in late-stage clinical trials and awaiting FDA decisions later in 2026.

GSK said both drugs have blockbuster potential if approved. The deal also gives GSK a platform to expand its experimental antibody-drug conjugate Ris-Rez, currently in late-stage testing.

Nuvalent develops precisely-targeted cancer therapies. Its pipeline fits directly into what Miels has been building toward — a stronger late-stage oncology lineup.

GSK’s oncology business grew 43% in 2025 to just under £2 billion, though it still only accounts for about 6% of the company’s £32.7 billion in total sales.

For context, rival AstraZeneca generates 44% of its total revenue from cancer drugs. GSK has a long way to close that gap, but this deal is a clear step in that direction.

GSK’s Oncology Gap — and the AstraZeneca Shadow

GSK exited oncology in 2014 via an asset swap with Novartis. AstraZeneca went the other way, going all-in on cancer under CEO Pascal Soriot — and it paid off.

Miels himself is a former AstraZeneca executive. His hire was widely seen as a signal that GSK wanted to replicate some of that playbook.

The Nuvalent deal won’t impact GSK’s 2026 full-year guidance, which remains at 7–9% core EPS growth. The company expects earnings per share dilution in the low single digits from 2026 to 2028.

Revenue contribution is expected from 2027, with core EPS accretion arriving in 2029. Net of cash acquired, GSK’s total investment is estimated at $9.4 billion.

The transaction is expected to close in Q3 2026, pending regulatory approvals.

Miels has said he wants to hit more than £40 billion in revenue by 2031 and strengthen the pipeline ahead of the 2028 patent expiry of HIV drug dolutegravir.