03:12 PM EDT, 05/27/2025 (MT Newswires) -- Eli Lilly ( LLY ) has agreed to acquire privately held SiteOne Therapeutics in a deal worth up to $1 billion in cash as the pharmaceutical giant looks to advance its pipeline of non-opioid medicines for pain management.

Under the terms of the deal, SiteOne shareholders could receive as much as $1 billion in cash, including an undisclosed upfront payment and subsequent milestone-based payments, the companies said Tuesday.

The acquisition includes phase 2-ready Nav1.8 inhibitor STC-004, which is being studied for pain treatment.

"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."

The company's shares were up 1.9% in Tuesday late-afternoon trade. The stock has lost 5.9% in value so far in 2025.

"Lilly shares our deep commitment to scientific rigor, innovation, and patient-centered drug development," SiteOne Chief Executive John Mulcahy said. "We believe their global capabilities and neuroscience leadership will accelerate our efforts to realize the full potential of STC-004 and our broader platform."

Earlier this month, Lilly cut its full-year earnings outlook due to acquisition-related charges even as its first-quarter results surpassed market expectations.

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