British pharmaceutical giant GlaxoSmithKline (GSK) is buying cancer drugmaker Nuvalent (NUVL) for $10.6 billion U.S.
GlaxoSmithKline, or GSK as the company is known, is Britain’s second-largest pharma company.
It says that acquiring Nuvalent will boost its pipeline of cancer medications. The deal is the largest by GSK in more than a decade.
The all-cash deal values Nuvalent at $124 U.S. per share and represents a 40% premium to its last closing price on June 8.
Nuvalent’s stock jumped 39% higher in U.S. premarket trading, while GSK’s stock fell 3% on news of the purchase.
Nuvalent is a cancer drugmaker that specializes in late-stage development of the disease. Its treatments are especially focused on lung cancer with specific genetic mutations.
The acquisition is expected to help GSK offset a drop in revenue expected when its best-selling HIV medication loses its patent exclusivity in 2028.
The deal is the second largest acquisition in GSK’s history, trailing only its 2014 purchase of Novartis, which was a transaction valued at $20 billion U.S.
GSK stock has risen 24% in the last year to trade at $50.64 U.S. per share in New York.
Tech Insider
