Pharmaceutical company Eli Lilly has announced plans to acquire private biotech company SiteOne in a deal worth up to $1 billion. This move has been done to expand the company’s neuroscience pipeline with a focus on non-opioid pain treatments. This acquisition would give Lilly access to STC-004, a Phase 2-ready Nav1.8 inhibitor that could offer significant relief to patients suffering from chronic pain without the risks associated with addictive medications.
“The global burden of chronic pain continues to increase, and an effective non-opioid treatment remains elusive,” said Mark Mintun, vice president of neuroscience research and development of Lilly group. “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.”
READ: Theranos founder’s partner receives millions in funding for new health startup (May 12, 2025)
Under the terms of this agreement, SiteOne shareholders could receive up to $1 billion in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain regulatory and commercial milestones.
John Mulcahy, chief executive officer and cofounder of SiteOne Therapeutics 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 rigor, innovation, and patient-centered drug development. We believe their global capabilities and neuroscience leadership will accelerate our efforts to realize 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.”
Lilly stated that the acquisition will be accounted for under generally accepted accounting principles (GAAP) and reflected in its future financial guidance. While J.P. Morgan is acting as the exclusive financial advisor for Lilly, Jones Day is acting as its legal counsel. For SiteOne, Centerview Partners LLC is acting as exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP, and Cooley LLP are acting as legal counsel.
The transaction is subject to customary closing conditions. Lilly will determine the accounting treatment of this transaction in accordance with Generally Accepted Accounting Principles (GAAP) upon closing.