9th Jun 2026 07:58
(Alliance News) - GSK agrees to buy US cancer treatment firm Nuvalent for USD10.6 billion, AstraZeneca advances its own weight-loss treatment while Bellway reports an "increasingly challenging" housing market.
Here is what you need to know before the London market open on Tuesday:
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MARKETS
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FTSE 100: called flat at 10,373.20
GBP: higher at USD1.3364 (USD1.3339 at previous London equities close)
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BROKER RATINGS
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Berenberg starts WPP with 'buy' - price target 405 pence
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Exane BNP cuts Tate & Lyle to 'neutral' (outperform) - price target 595 pence
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COMPANIES - FTSE 100
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GSK agrees to buy oncology-focused biopharmaceutical company Nuvalent for USD10.6 billion. The deal is the London-based pharmaceutical firm's largest in over a decade, following a USD20 billion deal back in 2014. GSK says the deal to buy the Boston, Massachusetts-based firm is "consistent" with its strategy of "acquiring assets that have validated targets and meaningfully address efficacy and/or tolerability limitations of existing standard-of-care therapies". The acquisitions includes three products in lung cancer, GSK notes. Zidesamtinib and neladalkib are two late-stage, potential best-in-class drugs for the treatment of lung cancer. Both received US Food & Drug Administration breakthrough therapy and orphan drug designations. Subject to FDA approval, they are expected to launch in 2026 with "multi-blockbuster potential". GSK Chief Executive Officer Luke Miels says: "The acquisition provides GSK with immediate new sales growth opportunities, improving profit contributions from 2027, and a platform in lung cancer for rapid expansion with Ris-Rez, our B7-H3 targeted ADC in phase III clinical development." GSK will commence a tender offer to acquire all of Nuvalent's outstanding shares at USD124 per share in cash within 10 business days. Net of cash acquired, GSK's aggregate investment is estimated to be USD9.4 billion. The price is a 40% premium to Nuvalent's last closing price. There is no change to GSK's 2026 full-year guidance range of 7-9% core operating profit and core earnings per share growth. The acquisition is expected to contribute to revenue growth from 2027.
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AstraZeneca says it is advancing its weight-loss treatment after a phase 2 trial achieves 11.8% weight loss in adults with obesity or overweight. The Cambridge, England-based pharmaceutical company says elecoglipron, an oral small molecule GLP-1 receptor agonist, will move to a phase 3 programme in obesity and type 2 diabetes, including cardiovascular and kidney outcome trials. In the Vista phase 2 trials, adults with obesity or overweight receiving the drug achieved a "clinically meaningful and statistically significant average reduction in body weight" the firm says. In the Solstice phase 2 trial, adults with type 2 diabetes achieved a clinically meaningful and statistically significant average reduction in HbA1c of 1.9% from the baseline at 26 weeks. "The progression of elecoglipron is an important step in delivering a differentiated weight management portfolio, offering monotherapies and combinations, designed to address the biological complexity of obesity and comorbidities that can be tailored to individual needs, enabling people to live healthier lives," says Sharon Barr, executive vice president for Biopharmaceuticals R&D at AstraZeneca.
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COMPANIES - FTSE 250
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Bellway says it continues to perform "robustly" in an "increasingly challenging" market. The Newcastle upon Tyne-based housebuilder says trading in the early part of the spring selling season shows a "marked improvement" from autumn 2025. However, it notes a moderation in customer demand in April and May amid a rise in mortgage rates. Current reservation rates are generally above the levels in the first half of the financial year, with incentive usage averaging around 5%. Bellway adds that there is "renewed upward pressure" on building material costs, but it is actively managing cost pressures through "disciplined" procurement, new standard house types and close control of production and overheads. The company says it remains on track to open over 40 new outlets in the second half of the financial year. The forward order book comprises 5,345 homes at the end of May, down from 5,759 homes a year ago, with a value of GBP1.57 billion, lower than GBP1.65 billion. Bellway reiterates its guidance for financial 2026 volume output between 9,300 homes and 9,500 homes, and remains on track for underlying operating profit between GPB320 million and GBP330 million. Chief Executive Jason Honeyman says: "The outlook beyond the current financial year remains uncertain, reflecting ongoing geopolitical tensions in the Middle East and a less predictable domestic political environment. Against this backdrop our clear focus on self-help and drive for capital efficiency provides resilience while supporting our strategy to increase cash generation and shareholder returns."
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Costain says it has been selected as one of three contractors for a Transport for London infrastructure improvement framework, worth around GBP700 million in total. The London-based construction firm says projects will be awarded over a two-year term, with an option of a two-year extension. Costain says the framework includes design, engineering, programme delivery and supply chain management. It will allow for infrastructure across London, including upgrade work at South Kensington tube station and works to enable TfL's step-free access programme. "We are a trusted, long-term partner of Transport for London, and our growing relationship with this important customer is testament to our proven track record in delivering best-in-class infrastructure services across the capital," says Costain Chief Executive Officeer Alex Vaughan.
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OTHER COMPANIES
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Fevertree Drinks says it remains confident of achieving full-year market expectations after a "solid start" to the year. Ahead of Tuesday's annual general meeting, the London-based manufacturer of premium drink mixers extends its ongoing share buyback programme by a further GBP30 million. This builds on the GBP100 million share buyback completed in 2025 and the ongoing GBP30 miillion tranche, of which GBP18.9 million has been returned by last Friday. "We have continued to make good progress against our strategic priorities so far this year. Fever-Tree is well placed to drive long-term growth across our markets as both a premium mixer and soft drink brand and this year we are significantly increasing marketing investment and innovating to support our growth ambitions," says Chief Executive Officer Tim Warrillow. Fevertree Drinks says it is "well hedged" from a cost perspective and remains confident of achieving market expectations for both adjusted revenue and earnings before interest, tax, depreciation and amortisation.
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Lindsell Train Investment Trust says it materially underperformed its benchmark index in the financial year to the end of March, as its net asset value falls. The investment trust set up by Nick Train and Michael Lindsell says its NAV per share at the end of March was 716.1 pence, down 25% from 952.1p a year earlier. The NAV total return for the financial year is minus 21.3%, compared to a 16.4% gain for its comparative benchmark, the MSCI world index in sterling. Chair Roger Lambert notes that the trust has little direct exposure to growth in AI infrastructure and applications but has investments which were impacted by fears of disruption to software and data companies. Lambert adds: "The strong performance over the last 12 months of energy companies, industrials and miners, as well as leverage financials including banks, has had an adverse impact on the company’s comparative performance." The chair continues: "We recognise that our manager’s approach is designed to achieve results over the long term, and that such a distinct and highly concentrated portfolio will likely have difficult periods when it is out of favour, either because its companies are temporarily disadvantaged or because investor capital is directed elsewhere. The board challenges the manager at every board meeting on the continued relevance of its investment strategy, the quality of the underlying businesses owned by the company and their suitability as investments to achieve the company’s objective. It will continue to do so." Lindsell Train cuts the final dividend to 28p per share from 42p. The company says it is proposing to introduce a contingency process, in case the firm is left with no directors after "recent activity by activist investors". The proposed amendments would allow the automatic and temporary appointment of re-appointment of the minimum number of individuals to fill the vacancies, drawn from those who stood or were removed at a general meeting. The board would then be required to appoint new, replacement directors as soon as possible after the meeting.
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Seraphim Space Investment Trust says a recent funding round by its largest portfolio funding ICEYE would be equivalent to an increase in net asset value per share of around 73p. The London-based investor in 'SpaceTech' companies notes the EUR450 million primary Series F financing round at a valuation of over EUR10 billion. The financing round is subject to approval and is expected to close in the third quarter of 2026. Based on the announced valuation, the implied uplift to fair value of the company's holding would be around EUR202 million. This would be a doubling in fair value and equivalent to 73p in NAV per share. At the end of March, ICEYE was Seraphim Space's largest portfolio holding, representing 47% of its NAV. ICEYE is the leading provider of sovereign intelligence from space, Seraphim Space says. "For SSIT shareholders, this financing round demonstrates the company's ability to provide access to category-leading SpaceTech companies at the forefront of some of the most important technological and geopolitical trends shaping the global economy," says Chief Investment Officer James Bruegger.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
WPPTate & LyleGlaxosmithklineAstrazenecaBellwayCostain GroupFevertreeLindsell TrainSeraphim Space