Eli Lilly Company (Lilly) has agreed to acquire SiteOne Therapeutics, a biotechnology company specialising in small molecule inhibitors for pain treatment.
The acquisition will expand Lilly’s pain management pipeline, featuring STC-004, a Phase 2 ready Nav1.8 inhibitor, which may offer a non-opioid solution for chronic pain patients.
Under the agreement, SiteOne shareholders could receive up to $1bn in cash, including an upfront payment and additional payments contingent upon achieving certain milestones.
The transaction is subject to customary closing conditions, and Lilly will determine its accounting treatment according to GAAP upon closing.
Lilly group neuroscience research and development vice president Mark Mintun said: “The global burden of chronic pain continues to increase, and an effective non-opioid treatment remains elusive.
“Lilly is eager to continue the development of STC-004 with the outstanding SiteOne team as part of our efforts to advance novel, addiction-free pain therapies. Innovation in pain management is critical to address the unmet needs of millions of patients around the world.”
SiteOne Therapeutics, a clinical-stage biopharmaceutical company, is focused on developing small molecule inhibitors targeting Nav1.7, Nav1.8, and other ion channels.
The drugs treat conditions like pain, cough, and other peripheral nervous system disorders.
SiteOne is committed to creating pain therapeutics without the addiction risks and side effects associated with opioids.
The company is also working on drug candidates targeting specific ion channel subtypes for disorders such as chronic cough and ocular surface pain.
JP Morgan Securities served as the exclusive financial advisor, while Jones Day provided legal counsel to Lilly, on this transaction.
Centerview Partners served as the exclusive financial advisor, Skadden, Arps, Slate, Meagher & Flom and Cooley as legal counsel to SiteOne.
SiteOne Therapeutics CEO and co-founder John Mulcahy said: “At SiteOne, we’ve spent more than a decade advancing a vision to deliver safer, more effective, non-opioid therapies for patients suffering from pain and other sensory hyperexcitability disorders.
“Lilly shares our deep commitment to scientific rigour, innovation, and patient-centred drug development.
“We believe their global capabilities and neuroscience leadership will accelerate our efforts to realise the full potential of STC-004 and our broader platform.
“This acquisition reflects the expertise and dedication of the SiteOne team and marks an exciting new chapter in our mission to transform pain treatment.”
Earlier this year, Lilly signed a collaboration and license agreement with Magnet Biomedicine to discover, develop, and market molecular glue therapeutics in oncology.
