Eli Lilly to acquire SiteOne for up to $1B in cash

Eli Lilly (LLY) and SiteOne Therapeutics, a private biotechnology company developing small molecule inhibitors of sodium channels to treat pain and other neuronal hyperexcitability disorders, announced a definitive agreement for Lilly to acquire SiteOne. The transaction includes STC-004, a Phase 2 ready Nav1.8 inhibitor being studied for the treatment of pain. STC-004 may represent a next-generation, non-opioid treatment for patients suffering from chronic pain. Under the terms of the agreement, Lilly will acquire SiteOne and SiteOne shareholders could receive up to $1.0B in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain regulatory and commercial milestones. “The global burden of chronic pain continues to increase, and an effective non-opioid treatment remains elusive,” said Mark Mintun, Lilly group vice president Neuroscience Research and Development. “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.” The transaction is subject to customary closing conditions. Lilly will determine the accounting treatment of this transaction in accordance with Generally Accepted Accounting Principles upon closing. This transaction will thereafter be reflected in Lilly’s financial results and financial guidance.