NUVL - Downgrading to Hold after GSK Acquisition; Aligning PT to $124 (from $140)

Research evidence excerpt

NUVL - Downgrading to Hold after GSK Acquisition; Aligning PT to $124 (from $140)

Truist Securities

Equity Research Report June 9, 2026

HEALTHCARE: Biotech Nuvalent, Inc. (NUVL)

NUVL - Downgrading to Hold after GSK Acquisition; Aligning PT to Gregory Renza, M.D.

212-419-4617 $124 (from $140)

Gregory.Renza@truist.com

Supawat Thongthip, Ph.D. Following the announced acquisition of Nuvalent by GSK (GSK, NR), we are downgrading

212-401-4429 NUVL shares to Hold from Buy and adjust our PT to $124 (from $140), reflecting the $10.6B

Supawat.Thongthip@truist.com deal price. We note that the transaction includes NUVL's lead late-stage assets, zidesamtinib

(ROS1 TKI) in ROS1+ NSCLC and neladalkib (ALK TKI) in ALK+ NSCLC, and NVL-330, a

Anish Nikhanj, Ph.D. ph.I HER2 TKI in HER2+ solid tumors, as well as undisclosed preclinical portfolio. The deal

212-326-3106 is expected to close by 3Q26.

Anish.Nikhanj@truist.com

GSK's all-cash acquisition of NUVL for $10.6B or $124 per share (see A Nu Valuation

Realized), represents a 40% premium to NUVL's prior closing price and a 26% premium to

Stock Rating HOLD the 30 calendar day VWAP. The tender offer is expected to commence within 10 business

↓ days and includes a standard $350M breakup fee, though we do not expect a competing bid

from from another suitor at this stage and currently expect the transaction to close by 3Q26.

Buy

Key catalysts: (1) Target close of the GSK/NUVL transaction (3Q26); (2) Potential FDA

Price Target $124.00 decision for zidesamtinib in TKI-pretreated ROS1+ NSCLC based on ARROS-1 data

↓ (PDUFA: Sep. 18, 2026); (3) Potential FDA decision for neladalkib in TKI-pretreated ALK

from + NSCLC based on ALKOVE-1 data (PDUFA: Nov. 27, 2026); (4) Potential expansion of