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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowEli Lilly and Co. announced plans on Tuesday to acquire private biotechnology company San Francisco-based SiteOne Therapeutics Inc. in a deal worth up to $1 billion.
SiteOne, founded in 2010, is developing a non-opioid therapy that targets sodium ion channels in the human body to treat pain and sensory hyperexcitability disorders. Called STC-004, the treatment is a a Nav1.8 inhibitor that is ready for Phase 2 testing.
Lilly said STC-004 might represent a next-generation, non-opioid treatment for chronic pain.
“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, in written remarks. “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 deal includes an undisclosed upfront payment and milestone-based payments. Lilly did not disclose an expected closing date.
SiteOne has been developing STC-004 for years and has raised more than $100 million in financing toward the effort, led by Novo Holdings, the controlling shareholder for Lilly competitor Novo Nordisk.
“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,” John Mulcahy, CEO and cofounder of SiteOne, said in written remarks. “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.”
Shares in Lilly were up nearly 1% at midday Tuesday, to $720.37 per share.
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