Equity Snap: GSK (GSK LN) Strengthens lung cancer pipeline with Nuvalent deal

Research evidence excerpt

Equity Snap: GSK (GSK LN) Strengthens lung cancer pipeline with Nuvalent deal

9 June 2026

Equity Snap: GSK (GSK LN) Equities Pharmaceuticals

Strengthens lung cancer pipeline with Nuvalent deal United Kingdom

◆ GSK accelerates its entry into the lung cancer programme Morten Herholdt*

with two late-stage assets designed to address efficacy Global Life Sciences & Healthcare Analyst HSBC Bank plc

and/or tolerability limitations in existing therapies morten.herholdt@hsbc.com + 44 20 7992 4082

◆ Reinvesting for growth Rajesh Kumar*

Senior Global Life Sciences & Healthcare Analyst

HSBC Bank plc

rajesh4kumar@hsbcib.com

GSK (GSK LN, GBPp1,913, Reduce, TP GBPp1,500) +44 20 7991 1629

(Priced as of 08 Jun 2026)

Sidharth Sahoo*

Global Life Sciences & Healthcare Analyst

Nuvalent acquisition: GSK has signed an agreement to acquire Nuvalent (NUVL HSBC Securities and Capital Markets (India) Private

US, CMP USD88.49, not rated) for a total consideration of c.USD9.4bn (net of cash Limited

sidharth.sahoo@hsbc.co.in

acquired). With this acquisition, GSK will acquire three lung cancer programmes, of +91 77 3813 4135

which two are late-stage NSCLC inhibitors, i.e. zidesamtinib (NVL-520, peak sales of Dhiraj Baid*

USD3.4bn, POS -90%) and neladalkib (NVL-655, peak sales of USD5.7bn, POS- Associate Bangalore

70%), both under US FDA review with 2026 target decision dates. Management

expects the transaction to close in Q3 2026, with revenue contribution from 2027 and * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

accretive to core operating profit in 2027, and core EPS in 2029 (inclusive of not registered/ qualified pursuant to FINRA regulations

synergies and reprioritisation).

Strategic rationale: Management cited it as a preferred deal type with multi-products

(vs.