GSK BUYS US CANCER FIRM NUVALENT FOR $10.6BN

GSK has agreed to acquire Nuvalent, a Boston-based cancer drug developer, for $10.6bn (£7.9bn). The FTSE 100 company's chief executive Luke Miels announced the deal, which marks GSK's largest acquisition to date. The purchase adds two late-stage treatments for non-small cell lung cancer to GSK's oncology portfolio. Both drugs, zidesamtinib and neladalkib, are currently under review by the US Food and Drug Administration, with decisions expected in September and November respectively.

Nuvalent has developed three cancer drugs in total, including the two late-stage treatments targeted at mutations that drive lung cancer. Those mutations predominantly affect non-smoking adults between the ages of 40 and 50, the majority of whom are women. Both treatments aim to deliver longer effective treatment periods alongside improved tolerability and quality of life. GSK anticipates launching the drugs later this year, subject to FDA approval, with each potentially generating annual revenues of several billion dollars.

Miels, who previously served as GSK's chief commercial officer, took over as chief executive from Emma Walmsley at the start of this year. The Nuvalent deal follows a series of acquisitions Miels has announced since assuming the role. GSK's previous largest deal was a 2014 asset swap with Novartis, valued at approximately $21bn, under then-chief executive Andrew Witty. The acquisition continues a strategic shift into oncology that Walmsley initiated in 2017.