Must read: GSK’s mega acquisition, Fevertree shares rally
ii’s head of investment rounds up the morning’s big news.
9th June 2026 09:32
by Victoria Scholar from interactive investor
GSK
GSK (LSE:GSK) is acquiring Boston-based oncology biopharmaceutical company Nuvalent for $10.6 billion. GSK said the deal is expected to be accretive to sales and core operating profit in 2027 and core earnings per share (EPS) in 2029. The deal will be funded primarily from new and existing debt facilities plus cash.
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This is an ambitious move from GSK’s new CEO Luke Miels who took to the helm in January. GSK shares are down around 3% today, languishing at the bottom of the FTSE 100, reflecting the fact that this is a mammoth deal even by GSK’s standards - the hefty price tag represents a 40% premium to Nuvalent’s share price before the announcement.
And the size of the deal dwarfs most of the company's other deals including its previous cancer drug acquisitions like Tesaro and Sierra Oncology. However, GSK argues that it is a multi-product deal, giving the company access to three lung cancer drugs in a single transaction, creating synergies and boosting sales and core earnings next year without hurting its dividend.
Fevertree
Fevertree Drinks (LSE:FEVR) has announced a £30 million extension to its share buyback programme, following its £100 million buyback completed in 2025 and the ongoing £30 million tranche. The company said it is confident in achieving market expectations for adjusted revenue and EBITDA and is ‘well hedged from a cost perspective’.
Shares have jumped over 5% as Fevertree is returning more cash to shareholders via a buyback, and it struck an upbeat tone around its outlook despite the geopolitical uncertainty in the Middle East. The drinks brand is also continuing its major push into the United States via a partnership with Molson Coors.
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Shares in Fevertree have had a tough time since the start of the Iran war, but the stock is regaining some ground today, reflecting signs from the company that is it successfully navigating the uncertainty.
The company’s vast choice of more than 30 different individual drinks means Fevertree is well positioned to benefit from shifting consumer preferences towards non-alcoholic low-calorie alternatives in pubs, bars and at home as well as the premiumisation of mixers in classic drinks such as the G&T.
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