Biopharmaceutical company GSK plc (LON:GSK) (NYSE:GSK) announced on Tuesday that it has entered an agreement to acquire Nuvalent Inc (NASDAQ:NUVL), a Boston-based clinical-stage biopharmaceutical company, in a USD10.6bn transaction aimed at strengthening its oncology portfolio and accelerating its entry into lung cancer.

The acquisition includes three lung cancer assets, led by zidesamtinib (NVL-520) and neladalkib (NVL-655), late-stage ROS1 and ALK inhibitors for non-small cell lung cancer that are currently under US FDA review, with target decision dates of September and November 2026, respectively. Subject to approval, both products are expected to launch in 2026 and are considered to have multi-blockbuster potential.

The deal also includes NVL-330, Nuvalent's HER2 inhibitor in Phase I development for HER2-altered non-small cell lung cancer, as well as the company's preclinical oncology pipeline.

GSK said the transaction supports its strategy of acquiring assets with validated targets that address efficacy and tolerability limitations of existing therapies, while providing a platform for future expansion alongside Ris-Rez, its B7-H3 antibody-drug conjugate currently in Phase III development.

Under the agreement, GSK will launch a tender offer to acquire all outstanding Nuvalent shares for USD124 per share in cash, representing a 40% premium to the last closing price and a 26% premium to the 30-day volume-weighted average price. Net of acquired cash, GSK's investment is estimated at USD9.4bn.

The company expects the acquisition to contribute to revenue growth from 2027, be accretive to core operating profit in 2027 and core earnings per share in 2029, while remaining consistent with its 2026 financial guidance. The transaction will be funded primarily through debt facilities and cash, with no expected impact on GSK's credit rating. Completion remains subject to customary closing conditions.