Eli Lilly and Company (NYSE:LLY) is advancing its neuroscience portfolio by acquiring SiteOne Therapeutics in a deal valued at up to $1 billion, reinforcing its focus on non-opioid pain therapies. The acquisition centers on SiteOne’s STC-004, a Phase 2-ready Nav1.8 inhibitor designed to provide relief for chronic pain sufferers without the risks of addiction associated with opioid medications.
The transaction aligns with growing investor and regulatory attention on safer, non-opioid alternatives amid increasing concerns about opioid misuse. Lilly said the deal supports its goal to lead in next-generation pain treatments while enhancing its neurology research efforts.
“The global burden of chronic pain continues to grow, and effective non-opioid treatments remain scarce,” said Mark Mintun, Lilly’s Group Vice President of Neuroscience R&D. “We’re excited to advance STC-004 with the talented SiteOne team as part of our commitment to innovative, addiction-free pain therapies.”
SiteOne, a privately held biotech, has developed a proprietary platform targeting Nav1.8 channels, which are crucial in transmitting pain signals. Although not yet commercialized, SiteOne’s technology has attracted significant pharmaceutical interest.
“At SiteOne, we’ve dedicated over a decade to creating safer, more effective non-opioid treatments for pain and sensory disorders,” said John Mulcahy, Ph.D., CEO and co-founder of SiteOne. “Lilly shares our passion for scientific rigor, innovation, and patient-centered drug development.”
Lilly will pay an upfront fee plus milestone payments contingent on regulatory and commercial successes, potentially totaling $1 billion. The acquisition will be accounted for under GAAP and reflected in Lilly’s future financial guidance.
J.P. Morgan Securities acted as exclusive financial advisor to Lilly, with Jones Day as legal counsel. SiteOne was advised by Centerview Partners, with legal support from Skadden, Arps, Slate, Meagher & Flom LLP and Cooley LLP.
Pending closing conditions, the acquisition marks a strategic move by Lilly to diversify beyond its leading diabetes and oncology franchises. As competition intensifies in central nervous system therapies, this deal could position Lilly at the forefront of transformative pain treatments.
Following the announcement, Lilly’s shares rose nearly 1%.