GSK Buys Cancer Drug Company for $10.6 Billion
Drug company GSK is buying Nuvalent for $10.6 billion in cash. Nuvalent is a cancer drug company based in Boston, United States.
This is GSK's biggest purchase in eight years. GSK is paying $124 per share.
That is 40% more than Nuvalent's recent share price. Nuvalent shares jumped 39% after the news.
Nuvalent makes cancer drugs including three treatments for lung cancer. Two lung cancer drugs are currently being reviewed by the United States Food and Drug Administration.
They could be approved in 2026. GSK's new chief executive Luke Miels wants to build a stronger cancer drug range. The deal is also expected to help GSK when its HIV drug loses patent protection in 2028.
Klear Note — GSK is a large drug company. Patent protection lets companies sell drugs alone. When patents expire, cheaper copies can be made.
Key Terms 4
- acquisition When one company buys another company completely
- premium Extra amount paid above the normal market price
- patent protection Legal right stopping others from copying a drug
- Food and Drug Administration US agency that approves medicines as safe to use