US pharmaceutical company Eli Lilly and Company (NYSE: LLY) and SiteOne Therapeutics Inc, a private biotechnology company developing small molecule inhibitors of sodium channels to treat pain and other neuronal hyperexcitability disorders, announced on Tuesday a definitive agreement for Lilly to acquire SiteOne.

The deal includes STC-004, a Phase 2 ready Nav1.8 inhibitor being studied for the treatment of pain.

"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," said Mark Mintun, Lilly group vice president Neuroscience Research and Development.

Under the terms of the agreement Lilly will acquire SiteOne, and SiteOne shareholders could receive up to USD1.0bn in cash, including an upfront payment and subsequent payments upon achievement of certain regulatory and commercial milestones.

The transaction is subject to customary closing conditions.