Lilly to expand its pain pipeline with acquisition of SiteOne Therapeutics

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

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