Eli Lilly and Company and SiteOne Therapeutics, Inc., a private biotechnology firm developing small molecule inhibitors of sodium channels for treating pain and neuronal hyperexcitability disorders, have entered a definitive agreement under which Lilly will acquire SiteOne.
The deal includes STC-004, a Phase 2–ready Nav1.8 inhibitor being studied for the treatment of chronic pain. STC-004 represents a potential next-generation, non-opioid therapy for pain patients.
“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.”
- Mark Mintun, Lilly group vice president Neuroscience Research and Development.
Financial Terms
Under the terms of the agreement:
- Lilly will acquire SiteOne.
- SiteOne shareholders could receive up to $1.0 billion in cash, including:
- An upfront payment.
- Additional milestone-based payments (regulatory and commercial).
Strategic Rationale
\ “At SiteOne, we've spent more than a decade advancing a vision to deliver safer, more effective, non-opioid therapies. Lilly shares our deep commitment to scientific rigor, innovation, and patient-centered drug development. Their global capabilities and neuroscience leadership will accelerate our efforts to realize the full potential of STC-004.”
- John Mulcahy, Ph.D., CEO and cofounder of SiteOne Therapeutics.
Regulatory & Financial Considerations
- The transaction is subject to customary closing conditions.
- Lilly will determine the accounting treatment of the acquisition in accordance with GAAP upon closing.
- The acquisition will then be reflected in Lilly’s financial results and future guidance.
Advisors
- For Lilly:
- Financial Advisor: J.P. Morgan Securities LLC
- Legal Counsel: Jones Day
- For SiteOne:
- Financial Advisor: Centerview Partners LLC
- Legal Counsel: Skadden, Arps, Slate, Meagher & Flom LLP and Cooley LLP
About SiteOne Therapeutics
SiteOne is a clinical-stage biopharmaceutical company focused on:
- Developing highly selective small molecule inhibitors of Nav1.7, Nav1.8, and other ion channels.
- Target indications include pain, cough, and other sensory hyperexcitability disorders.
The company aims to deliver non-addictive pain therapeutics and is also advancing candidates for chronic cough and chronic ocular surface pain.
About Eli Lilly
Eli Lilly and Company is a global medicine company pioneering life-changing discoveries for nearly 150 years. Areas of innovation include:
- Diabetes care
- Obesity and its long-term effects
- Alzheimer’s disease
- Immune system disorders
- Hard-to-treat cancers
Lilly is committed to:
- Making life better for people globally
- Delivering inclusive clinical trials
- Ensuring affordable and accessible medicines
