The British pharmaceutical giant GlaxoSmithKline PLC has finalized an agreement to acquire the US-based biopharmaceutical company Nuvalent, Inc. for a total of $10.6 billion, aiming to significantly strengthen its lung cancer drug portfolio. This deal marks the largest acquisition for the UK drugmaker in over a decade.

According to a statement released by GSK on Tuesday, the transaction is an all-cash offer, valuing Nuvalent at $124 per share, which represents a 40% premium over the company's previous closing stock price.

GSK's Chief Executive Officer, Luke Mills, stated in the announcement, "This acquisition will provide GSK with an immediate and incremental source of revenue growth, enhancing profit contributions from 2027 onwards. It also establishes a rapidly scalable lung cancer research platform, anchored by the Phase 3-ready, B7-H3 targeting antibody-drug conjugate, Ris-Rez."

The company indicated that this acquisition does not alter its full-year 2026 guidance for core operating profit and core earnings per share growth. It is anticipated to begin contributing to overall revenue growth from 2027.

This transaction stands as the second-largest in GSK's history, only surpassed by the $20 billion asset swap deal with Novartis in 2014, through which GSK took over Novartis's vaccine business.

Furthermore, this multi-billion dollar acquisition represents a significant strategic shift, moving away from the company's recent focus on small to mid-sized deals.

Luke Mills assumed the CEO role earlier this year, succeeding Emma Walmsley. In February, he informed investors that the company's prior acquisition strategy had concentrated on high-quality, undervalued assets in the £2-4 billion range.

A central task for Mills is to rebuild the company's drug pipeline to alleviate investor concerns over a thin new product portfolio. Since his appointment was announced last September, GSK's share price has risen approximately 29%.

Nuvalent's lead drug candidate, neladalkib, is a targeted therapy for a specific subtype of lung cancer currently under review by the US Food and Drug Administration, with a decision deadline of November 27.

Another of its drugs, zidesamtinib, for ROS1-positive non-small cell lung cancer, is also undergoing the FDA's new drug application review process.

Analysts from CGS International estimated in a January investor note that, if both drugs gain approval, their combined annual sales could reach $823 million by the 2029 fiscal year.

The global biopharma sector is currently experiencing a surge in merger and acquisition activity. Factors driving this trend include impending patent cliffs for blockbuster drugs, a recovery in capital markets, and major pharmaceutical companies actively seeking to expand their drug pipelines. Data from market research firm PitchBook shows that 201 deals have been completed in the biopharma sector so far in 2026, totaling $106 billion, putting the industry on track for its strongest year for M&A since the pre-pandemic peak.