GlaxoSmithKline headquarters in London on Jan. 17, 2022.
Hannah Mckay | Reuters
UK pharmaceutical group GSK is in talks to amass oncology biotech Nuvalent for greater than $9 billion, in what could be the British drugmaker’s largest acquisition in additional than a decade, the Monetary Occasions reported Tuesday.
The businesses have been in discussions with the intention of finalizing a deal as early as this week, the FT reported, citing folks acquainted with the matter. Representatives for GSK and Nuvalent didn’t reply to CNBC’s requests for remark.
Either side have but to achieve a closing settlement and the talks might nonetheless collapse over last-minute hurdles, in line with the report. A possible deal might worth Nuvalent at between $9 billion and $10 billion, representing a premium of roughly 29% to 43% over the biotech firm’s market capitalization of practically $7 billion at Monday’s shut.
GSK Plc
The deal could be the second largest acquisition in GSK’s historical past, the FT reported, trailing its 2014 asset swap with Novartis during which it assumed management of the Swiss drugmaker’s vaccines division in a transaction valued at $20 billion.
It will additionally mark a notable departure from the corporate’s give attention to smaller transactions in recent times.
GSK chief govt Luke Miels, who took over the job from longtime boss Emma Walmsley at the beginning of the yr, advised traders in February that he would give attention to transactions within the £2 billion to £4 billion vary that have been “hiding in plain sight.”
Miels has been tasked with overhauling an organization that has struggled to allay investor considerations about its drug pipeline. GSK’s share worth has climbed roughly 29% since Miels’ appointment was introduced in September.
Nuvalent’s lead asset, neladalkib — a remedy that targets sure varieties of lung most cancers — is at the moment present process FDA assessment with a deadline of Nov. 27.
The corporate additionally has a brand new drug utility for zidesamtinib, for sufferers with a sort of most cancers often known as ROS1-positive non-small cell lung most cancers, below FDA assessment.
Analysts at CGS Worldwide estimated that if accredited, neladalkib and zidesamtinib might generate mixed annual revenues of $823 million within the 2029 monetary yr, in a January observe to traders.
The deal additionally comes at a time of biotech dealmaking frenzy, pushed by looming patent cliffs, newly buoyant public markets and pharma giants’ race to bolster their pipelines. Biotech offers globally reached $106 billion throughout 201 transactions to date in 2026, in line with PitchBook information, placing the sector on observe for its strongest yr for the reason that pre-pandemic peak.
— CNBC’s Elsa Ohlen contributed to this report.
