Eli Lilly to Acquire SiteOne to Boost Non-Opioid Pain Drug Pipeline

Key Takeaways:

• Eli Lilly to acquire SiteOne Therapeutics in a deal worth up to $1 billion.
• STC-004, a promising non-opioid pain therapy, is the focal point of the acquisition.
• The deal strengthens Lilly’s neuroscience pipeline with a novel chronic pain candidate.

In accordance with the transaction agreement, Eli Lilly is acquiring biotech firm SiteOne Therapeutics in an biotech acquisition agreement of $1 billion biopharma deal. This amount is comprised of an upfront payment, as well as additional regulatory and commercial milestone-based payouts contingent upon regulatory success and commercial sales.

Mark Mintun, Lilly group vice president Neuroscience Research and Development said, "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. Innovation in pain management is critical to address the unmet needs of millions of patients around the world."  

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The transaction is subject to customary closing conditions and once closed, Lilly will account for the transaction in accordance with Generally Accepted Accounting Principles (GAAP), and reflected in the company's financial performance and future guidance.

J.P. Morgan Securities LLC is serving as Lilly's exclusive financial advisor, with M&A legal advisory team from Jones Day. SiteOne is being advised by Centerview Partners LLC on an exclusive basis and is represented by leading life sciences law firms Skadden, Arps, Slate, Meagher & Flom LLP and Cooley LLP.