Nuvalent Stock Climbs 39% On $10.6 Bln Takeover Deal With GSK

(RTTNews) - Shares of Nuvalent, Inc. were surging around 39 percent in the pre-market activity on the Nasdaq, after the clinical-stage biopharma company focused on cancer therapies agreed to be acquired by British drug major GSK plc, in a deal valued at $10.6 billion or 8.0 billion pounds.

Further, GSK maintained its 2026 guidance range of 7 percent to 9 percent growth in core operating profit and core earnings per share.

The transaction, which would strengthen GSK's oncology pipeline with late-stage assets aimed at non-small cell lung cancer, will result in dilution to GSK's core earnings per share for the current year, fiscal 2027 and fiscal 2028, but accretion to core operating profit in 2027 and core earnings per share in 2029.

The transaction, expected to close in the third quarter, is subject to customary conditions, including regulatory approvals and majority shareholder tender.

Boston-based Nuvalent is a clinical-stage biopharmaceutical company developing targeted cancer therapies. The transaction includes three Nuvalent products in lung cancer.

Nuvalent's portfolio includes Zidesamtinib (NVL-520) and Neladalkib (NVL-655), next-generation ROS1 and ALK inhibitors currently under FDA review, with decision dates set for September 18, 2026, and November 27, 2026.

Both candidates have Breakthrough Therapy and Orphan Drug Designations and are expected to launch later this year, subject to approval. A third candidate, NVL-330, is in early-stage trials targeting HER2-altered NSCLC.

Luke Miels, CEO, GSK said, "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."

Under the deal terms, GSK will commence a tender offer to acquire all outstanding Nuvalent shares at $124 per share in cash, representing a 40 percent premium to the last closing price. Net of cash acquired, the investment totals $9.4 billion.

The acquisition is expected to contribute to revenue growth from 2027, be incremental to the existing ambition for sales of above 40 billion pounds by 2031 and to strengthen core operating profit through the dolutegravir loss of exclusivity period from 2028-2030.

GSK also reaffirmed its planned 70p dividend for 2026 and its commitment to a progressive dividend policy thereafter.

Nuvalent CEO James Porter emphasized the alignment with GSK's infrastructure and commercial expertise to advance its precision oncology pipeline.

In the deal, advisors include Leerink Partners and Citigroup for GSK, and Centerview Partners and Jefferies for Nuvalent.

In pre-market activity on Nasdaq, Nuvalent shares were jumping around 38.76 percent to $122.79, after closing Monday's regular trading 2.70 percent lower.

GSK shares are currently down 0.40 percent in pre-market trading, at $50.45, after closing Monday's trade 1.71 percent lower.

In London, GSK shares were trading at 1,889.00 pence, down 1.25 percent.