Eli Lilly to acquire SiteOne therapeutics for up to US$1B to boost non-opioid pain pipeline

USA— Eli Lilly has announced its agreement to acquire SiteOne Therapeutics, a privately held biopharmaceutical company focused on developing non-opioid treatments for pain and other conditions involving nerve hyperexcitability.

The deal, valued at up to US$1 billion, includes an upfront payment as well as additional regulatory and commercial milestone payments to SiteOne shareholders.

This acquisition strengthens Eli Lilly’s pain management portfolio by adding SiteOne’s lead candidate, STC-004, which is ready to enter Phase II clinical trials.

 STC-004 is an oral drug that works by blocking the Nav1.8 sodium channel, a voltage-gated channel primarily found in pain-sensing neurons.

This mechanism offers a promising alternative to opioid-based pain treatments, which, while effective, carry significant risks of addiction and overdose.

SiteOne has been developing selective ion channel modulators for pain, cough, and other sensory hyperexcitability disorders, but STC-004 remains its only publicly disclosed candidate.

Early Phase I trial results showed that STC-004 is rapidly absorbed, has a half-life suitable for once-daily dosing, and was well tolerated at all doses tested, indicating a favorable safety profile.

Eli Lilly’s vice president of neuroscience research and development, Mark Mintun, emphasized the urgent need for effective non-opioid pain treatments, noting that the global burden of chronic pain continues to rise.

He expressed Lilly’s commitment to advancing STC-004 as part of its broader efforts to develop novel, addiction-free therapies for millions of patients worldwide.

The acquisition comes at a time when the pharmaceutical industry is actively seeking alternatives to opioids due to the ongoing opioid epidemic, particularly in the United States.

Common opioids like hydrocodone, oxycodone, morphine, codeine, and fentanyl are effective but highly addictive, prompting regulatory agencies and companies to support the development of safer options.

Notably, the U.S. Food and Drug Administration recently approved Vertex Pharmaceuticals’ Journavx (suzetrigine), the first non-opioid pain medication targeting the same Nav1.8 sodium channel.

While Journavx showed mixed results in Phase II trials, it met its primary endpoint and is forecasted to reach blockbuster sales of US$2.7 billion by 2031. This success sets a promising precedent for STC-004’s potential in the market.

SiteOne’s CEO, John Mulcahy, highlighted the company’s decade-long commitment to developing safer, more effective non-opioid therapies and expressed confidence that Eli Lilly’s global capabilities and neuroscience expertise will accelerate the development and commercialization of STC-004 and other pipeline candidates.

Following the announcement, Eli Lilly’s shares rose by 0.46% to US$717.03 at market open, reflecting investor optimism.

 The company currently holds a market capitalization of approximately US$648.5 billion, underpinning its strong financial position to support this strategic acquisition.

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