GSK is in advanced talks to acquire cancer biotech Nuvalent for $9-10 billion, a significant premium to its $7 billion market cap. The deal would mark the UK pharmaceutical giant's largest acquisition in over a decade, signaling a strategic shift under new CEO Luke Miels. Negotiations are progressing rapidly, with companies aiming to reach an agreement this week despite potential last-minute hurdles.

The acquisition represents a bold bet for GSK as it rebuilds its oncology portfolio following a 2014 asset swap with Novartis. Recent oncology acquisitions include Sierra Oncology at $1.9 billion and IDRx for up to $1.1 billion. This move marks a departure from the small, bolt-on deals Miels previously pursued, as the company targets ambitious revenue growth of more than £40 billion by 2031.

Nuvalent's pipeline includes two targeted therapies for non-small-cell lung cancer, with FDA decisions expected later this year. Analysts project peak sales of $5-7 billion from its medicines. Despite a recent setback with neladalkib as a frontline therapy, GSK sees this acquisition as critical to competing with larger cancer drugmakers like Merck and Bristol Myers Squibb in a rapidly evolving oncology market.