Latest news with #STC-004
Yahoo
3 days ago
- Business
- Yahoo
Eli Lilly Targets Pain Management Opportunity with SiteOne Therapeutics Acquisition
Eli Lilly and Company (NYSE:LLY) is expanding its footprint into the non-opioid pain management market in pursuit of growth opportunities. On May 27, the company announced the inking of an agreement to acquire SiteOne therapeutics. The company is acquiring the private biotech company in a deal worth up to $1 billion in cash and milestone-based payments. Pixabay/Public Domain With the acquisition, Eli Lilly will gain access to SiteOne Therapeutics flagship product STC -004, a Phase 2 ready Nav1.8 inhibitor being developed as a non-opioid treatment for chronic pain. The asset aligns with the company's push for addiction-free pain therapies. The acquisition also underscores the company's push for opportunity in the pain management market, whereby hundreds of millions of patients struggle with chronic pain. Eli Lilly views pain management as a strategic therapeutic area, given the massive market size and persistent unmet medical needs. Expansion into the pain management sector comes as Eli Lilly seeks to reduce its reliance on weight loss and diabetes drugs for revenues. "The rising global impact of chronic pain highlights the urgent need for effective non-opioid treatments," said Mark Mintun, Lilly's Group VP of Neuroscience R&D. "Lilly looks forward to advancing STC-004 with the exceptional SiteOne team, furthering our mission to develop innovative, addiction-free pain therapies." SiteOne Therapeutics is a clinical-stage biopharma company developing highly selective small molecule inhibitors targeting Nav1.7 and Nav1.8 to treat pain, cough, and sensory hyperexcitability disorders. Its focus is on safe, non-opioid treatments to minimize addiction risks. Eli Lilly and Company is a global pharmaceutical leader dedicated to innovative, life-changing treatments. With nearly 150 years of pioneering research, Lilly addresses diabetes, obesity, Alzheimer's, cancer, and immune disorders, ensuring accessible, affordable medicines worldwide. While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Yahoo
3 days ago
- Business
- Yahoo
Eli Lilly to Expand Pain Pipeline With $1B SiteOne Buyout Offer
Eli Lilly LLY recently announced that it has entered into a definitive agreement to acquire the privately held clinical-stage company SiteOne Therapeutics in a deal valued at $1 billion. Through this acquisition, LLY intends to strengthen its neuroscience pipeline and advance non-opioid medicines for pain management. Once the deal is closed, the company will add SiteOne's lead asset, STC-004, to its pipeline. This investigational phase II-ready drug belongs to a class of drugs called Nav1.8 inhibitors that block the channels involved in transmitting pain signals. This approach intends to replace the highly addictive opioid-based medications. In February, SiteOne announced positive results from an early-stage study on STC-004, which showed that the drug was safe and well-tolerated at all dose levels while also improving pain tolerance. The deal will also add other investigational drugs to LLY's pipeline, which are being developed to treat pain, cough and other conditions involving hyperexcitability of the peripheral nervous system. Though Eli Lilly did not provide a breakdown of the financial details of the deal, it did mention that the sum of $1 billion is inclusive of upfront and milestone payments. Founded in 2010, SiteOne has been garnering interest from big pharma for its non-opioid pipeline. Toward the end of last year, it closed a $100 million funding round led by Novo Holdings, the parent company of pharma giant Novo Nordisk NVO. SiteOne also has a partnership with Vertex Pharmaceuticals VRTX, signed in 2022, to advance NaV1.7 inhibitors for the treatment of pain. As seen in the chart below, Eli Lilly's shares are in line with the industry in the year-to-date period. Image Source: Zacks Investment Research The transaction seems to be a strategic fit for Eli Lilly, which is advancing multiple pain candidates like SSTR4 agonist mazisotine, P2X7 inhibitor LY3857210 and epiregulin antibody LY3848575 across separate mid-stage studies. The addition of STC-004 is likely to diversify the company's existing non-opioid pain pipeline. Notably, the mechanism utilized by STC-004 was validated earlier this year when the FDA approved Vertex Pharmaceuticals' Journavx — also a Nav1.8 inhibitor — for treating adults with moderate-to-severe acute pain. Following this approval, the VRTX drug is the first and only non-opioid oral pain signal inhibitor and also the first new class of pain medicine to be approved in more than 20 years. The deal also benefits SiteOne as it lacks the commercial infrastructure and expertise needed to bring a drug to market, areas whereas Eli Lilly is already well established. Eli Lilly and Company price | Eli Lilly and Company Quote Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Eli Lilly Targets Pain Management Opportunity with SiteOne Therapeutics Acquisition
Eli Lilly and Company (NYSE:LLY) is expanding its footprint into the non-opioid pain management market in pursuit of growth opportunities. On May 27, the company announced the inking of an agreement to acquire SiteOne therapeutics. The company is acquiring the private biotech company in a deal worth up to $1 billion in cash and milestone-based payments. Pixabay/Public Domain With the acquisition, Eli Lilly will gain access to SiteOne Therapeutics flagship product STC -004, a Phase 2 ready Nav1.8 inhibitor being developed as a non-opioid treatment for chronic pain. The asset aligns with the company's push for addiction-free pain therapies. The acquisition also underscores the company's push for opportunity in the pain management market, whereby hundreds of millions of patients struggle with chronic pain. Eli Lilly views pain management as a strategic therapeutic area, given the massive market size and persistent unmet medical needs. Expansion into the pain management sector comes as Eli Lilly seeks to reduce its reliance on weight loss and diabetes drugs for revenues. "The rising global impact of chronic pain highlights the urgent need for effective non-opioid treatments," said Mark Mintun, Lilly's Group VP of Neuroscience R&D. "Lilly looks forward to advancing STC-004 with the exceptional SiteOne team, furthering our mission to develop innovative, addiction-free pain therapies." SiteOne Therapeutics is a clinical-stage biopharma company developing highly selective small molecule inhibitors targeting Nav1.7 and Nav1.8 to treat pain, cough, and sensory hyperexcitability disorders. Its focus is on safe, non-opioid treatments to minimize addiction risks. Eli Lilly and Company is a global pharmaceutical leader dedicated to innovative, life-changing treatments. With nearly 150 years of pioneering research, Lilly addresses diabetes, obesity, Alzheimer's, cancer, and immune disorders, ensuring accessible, affordable medicines worldwide. While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Yahoo
4 days ago
- Business
- Yahoo
Eli Lilly expands pain pipeline with acquisition of SiteOne Therapeutics
-- Eli Lilly and Company (NYSE:LLY) is expanding its neuroscience pipeline through the acquisition of SiteOne Therapeutics in a deal worth up to $1 billion, deepening its bet on non-opioid pain treatments. The centerpiece of the acquisition is STC-004, a Phase 2-ready Nav1.8 inhibitor that could offer significant relief to patients suffering from chronic pain without the risks associated with addictive medications. The transaction follows growing investor momentum behind non-opioid alternatives as public and regulatory pressure continues to intensify around opioid misuse. Lilly said the acquisition aligns with its ambition to lead in next-generation pain therapeutics while bolstering its research focus in neurology. "The global burden of chronic pain continues to increase, and an effective non-opioid treatment remains elusive," said Mark Mintun, Lilly's 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." SiteOne, a privately held biotech, has spent years developing its proprietary platform around Nav1.8 channel inhibition, which plays a key role in pain signal transmission. The deal represents a strategic milestone for the company, which has yet to commercialize a product but has generated growing interest from pharmaceutical partners. "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," said John Mulcahy, Ph.D., CEO and cofounder of SiteOne Therapeutics. "Lilly shares our deep commitment to scientific rigor, innovation, and patient-centered drug development." Lilly will pay an upfront fee and additional milestone-based payments tied to regulatory and commercial achievements, bringing the total value of the transaction to a possible $1 billion. The company said the acquisition will be accounted for under generally accepted accounting principles (GAAP) and reflected in its future financial guidance. Investment banks and legal teams are positioned behind both sides of the transaction, with J.P. Morgan Securities acting as exclusive financial advisor to Lilly and Jones Day serving as legal counsel. SiteOne was advised by Centerview Partners, while Skadden, Arps, Slate, Meagher & Flom LLP and Cooley LLP served as legal counsel. Pending closing conditions, the acquisition marks Lilly's continued strategic push to diversify beyond its dominant diabetes and oncology portfolio. As competition intensifies in central nervous system therapies, the move could position Lilly on the front edge of a potentially transformative class of pain treatments. Lilly stock is up nearly 1% following the announcement. Related articles Eli Lilly expands pain pipeline with acquisition of SiteOne Therapeutics Goldman Sachs: Machinery supply is improving for the first time in three years TSX higher as Trump delays tariffs on EU Sign in to access your portfolio
CNBC
4 days ago
- Business
- CNBC
Eli Lilly to buy privately held SiteOne in deal worth up to $1 billion
Eli Lilly will buy privately held SiteOne Therapeutics in a deal worth as much as $1 billion, the companies said on Tuesday, giving the drugmaker access to an experimental non-opioid pain medicine. SiteOne's STC-004 belongs to a class of drugs, known as Nav1.8 inhibitors, that target the channels involved in transmitting pain signals. Vertex Pharmaceuticals' recently approved non-opioid painkiller Journavx also belongs to the same class. Under the terms of the agreement, SiteOne shareholders could receive up to $1 billion in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain regulatory and commercial milestones.
