U.K. pharmaceutical group GSK
has entered an agreement to acquire U.S.-based drugmaker Nuvalent
for $10.6 billion to bolster its lung cancer pipeline, in what would be the British drugmaker’s largest acquisition in more than a decade.

The all-cash deal values Nuvalent at about $124 per share, according to a GSK filing on Tuesday, representing a 40% premium to its last closing price.

The Financial Times had reported the transaction earlier on Tuesday. Nuvalent did not respond to a request for comment.