LONDON — GSK has agreed to buy US-listed cancer drug developer ‌Nuvalent for US$10.6 billion in its largest deal in more than a decade, marking a major strategic shift under new CEO Luke Miels as the British company steps up its focus on oncology.

The all-cash deal values Nuvalent at approximately US$124 per share, a 40 per cent premium to its last closing price. Shares in Nuvalent, which develops lung cancer drugs, were up about 38 per cent at US$122.10 in US premarket trade. GSK shares slipped over 3 per cent in early trading in London.

The deal marks a departure from GSK’s usual strategy of smaller “bolt-on” deals as Miels, who took over from Emma Walmsley at the start of the year, looks to convince investors the drugmaker can hit a bold target of £40 billion in annual revenue by 2031.

“It’s larger than the bracket because it was unusual,” Miels told reporters on a call, although he said GSK’s sales targets were not dependent on the acquisition. “It’s a multi-product deal... So it’s essentially three products in one.”

UBS analysts said that investors could be surprised by the size of the deal, given GSK’s normal preference for ‌acquisitions in the US$2 billion to US$4 billion range.