The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Aimee Donnellan

DUBLIN, June 9 (Reuters Breakingviews) - On the face of it, the $100 bln UK pharma’s swoop on Nuvalent goes against new boss Luke Miels’ plan for small-fry M&A. But the US lung cancer specialist’s duo of promising drugs gets GSK closer to its 2031 sales target. And provided they get approved, Miels isn’t overpaying.

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CONTEXT NEWS

GSK on June 9 agreed to buy U.S.-listed cancer drug developer Nuvalent for $10.6 billion.

The all-cash deal values Nuvalent at approximately $124 per share, a 40% premium to its last closing price.

The deal is expected to add to the drugmaker's existing sales target, the company said.

Net of cash acquired, GSK's aggregate investment is estimated to be $9.4 billion, the British company said, adding that the deal is expected to add to sales and operating profit in 2027 and core earnings per share in 2029.

Shares in GSK were down 2.7% by 0811 GMT on June 9.