Eli Lilly And Co ( LLY ) on Tuesday agreed to acquire SiteOne Therapeutics, Inc., a private biotechnology company developing small-molecule inhibitors of sodium channels to treat pain and other neuronal hyperexcitability disorders.

The transaction includes STC-004, a Phase 2 ready Nav1.8 inhibitor being studied for pain.

STC-004 may represent a next-generation, non-opioid treatment for patients suffering from chronic pain.

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“The global burden of chronic pain continues to increase, and an effective non-opioid treatment remains elusive,” said Mark Mintun, Lilly group vice president of 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.”

Under the terms of the agreement, Lilly will acquire SiteOne, and SiteOne shareholders could receive up to $1 billion in cash, including an upfront payment and subsequent payments upon achieving certain regulatory and commercial milestones.

Earlier in May, Eli Lilly ( LLY ) entered into a strategic global research collaboration and licensing agreement with Rznomics Inc., a South Korea-based biopharmaceutical company specializing in RNA-based therapeutics.

The agreement focuses on developing and commercializing RNA-editing therapies using Rznomics' proprietary trans-splicing ribozyme platform.

If Lilly exercises all available options under the agreement, the total deal value could reach more than $1.3 billion, and separate royalties on product sales. The upfront payment was not disclosed. 

Price Action: LLY stock is up 1.7% at $726.14 at the last check Tuesday.

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