GSK plc is in advanced negotiations to purchase Nuvalent, a U.S.-based cancer drug developer, in a transaction valued at more than $9 billion, the Financial Times reported on Tuesday, citing people familiar with the matter.
Sources told the FT that the two companies were aiming to reach an agreement as soon as this week. However, the report emphasized that talks were ongoing and could still fall apart if last-minute obstacles emerge.
The proposed deal could place a valuation on Massachusetts-based Nuvalent in the range of $9 billion to $10 billion, which would be a notable premium to its market capitalization of nearly $7 billion at Monday's close, according to the report.
If completed, the acquisition would stand as GSK's largest transaction in more than a decade and would rank among the biggest deals in the company's history. The move would align with Chief Executive Luke Miels' stated push to bolster the British drugmaker's oncology pipeline.
The potential takeover comes amid a broader surge in biotech mergers and acquisitions this year. The FT noted Dealogic data showing almost $211 billion of biotech transactions announced so far this year.
Nuvalent develops targeted cancer therapies, with its lead candidate neladalkib - a lung cancer drug - currently under review by U.S. regulators.
Market context - The reported valuation range implies a substantial premium to Nuvalent's recent market value and reflects heightened deal activity in the biotech sector.
Deal status - Discussions are advanced but not finalized, and the parties could still walk away if unresolved issues arise in the final stages of negotiation.
Strategic rationale - The acquisition, if completed, would reinforce GSK's focus on expanding its oncology offerings under its current leadership.