Adds details on deal and cancer drug portfolio in paragraphs 4, 8-10

June 9 (Reuters) - GSK GSK.L has agreed to buy U.S.-listed cancer drug developer Nuvalent for $10.6 billion in its largest deal in years, marking a strategic shift under new CEO Luke Miels as the drugmaker steps up its focus on oncology.

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

The acquisition departs from GSK’s usual strategy of smaller "bolt-on" deals pursued under Miels, who took over earlier this year from Emma Walmsley.

Miels has been tasked with convincing investors the company can deliver more than £40 billion in revenue by 2031, strengthen its drug pipeline and manage the 2028 patent expiry of its HIV medicine dolutegravir.

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

BUILDING SCALE IN CANCER TREATMENTS

Miels said the acquisition offers "significant new treatment options" for lung cancer patients and creates a platform to expand its experimental antibody-drug conjugate Ris-Rez, now in late-stage testing.

He has pledged to accelerate development of new medicines and target assets that would strengthen GSK's late-stage pipeline. The company has struck two deals this year since he took over.

In 2025, GSK saw notable growth across its oncology portfolio, with sales income across the disease area swelling by 43% to just under £2 billion compared to 2024. Oncology accounts for about 6% of GSK's £32.7 billion in total sales.

GSK is also seeking to close the gap with London-listed rival AstraZeneca AZN.L in cancer drugs, which accounted for 44% of the Anglo-Swedish group's total sales last year.

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.

The deal, which is expected to close in the third quarter of 2026, will be funded mainly from new and existing debt facilities plus cash and could have a low single-digit percentage dilution to core earnings per share for 2026 to 2028.

GSK said the deal does not affect its 2026 full-year forecast of 7% to 9% core EPS growth.