British “GSK” expands into cancer drugs by acquiring “Novalent” | economy

British pharmaceutical company GSK announced on Tuesday that it had reached an agreement to acquire the American company Novalent, which specializes in developing cancer treatments, in a deal worth $10.6 billion, as part of its efforts to expand its portfolio of innovative medicines and enhance its presence in the oncology market.

The giant British pharmaceutical company said that the deal includes three lung cancer treatments that are still in the testing stages, two of which are approaching the commercial marketing stage, awaiting approval from US regulatory authorities.

The company’s CEO, Luke Mills, explained that two of the drug treatments developed by Novalent “may be among the best in their class, and may be launched this year if they receive approval from US regulatory authorities.”

GSK expects to complete the acquisition deal during the current year, which may allow the two drugs “Zedsamtneb” and “Nila Dalkup” to be put on the market before the end of 2026 if they meet the conditions of the regulatory authorities.

On the other hand, James Porter, CEO of Novalent, said: “GSK’s strong track record, infrastructure and experience will help to successfully commercialize zedsamtnib and Nila Dalcup, in addition to accelerating the development of our research plan.”

Bet on the oncology market

The deal comes within the framework of the increasing competition between international pharmaceutical companies to acquire companies that own promising treatments in the field of cancer, which is one of the fastest growing and most profitable sectors of the pharmaceutical industry.

The pharmaceutical sector is witnessing a wave of mergers and acquisitions as major companies seek to strengthen their production lines and compensate for the expiration of patents on some major medicines in the coming years.

The deal also comes at a time when the pharmaceutical sector is facing increasing challenges in the United States, after US President Donald Trump threatened to impose customs duties on the pharmaceutical industry with the aim of encouraging local investment and reducing drug prices.

GSK, along with a number of non-American international pharmaceutical companies, agreed last December to reduce the prices of some medications prescribed for American patients in exchange for obtaining customs exemptions for a period of 3 years.

The acquisition represents the first major deals for the British company under the leadership of Luke Mills, who assumed the position of CEO last January, succeeding Emma Walmsley, in a step that reflects the new management’s direction towards expansion through acquisitions to enhance growth in the innovative pharmaceutical market.