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iStock, Cinefootage Visuals The acquisition of SiteOne provides a bit of diversification for Lilly, which has burrowed into the obesity and diabetes space with mega-blockbuster tirzepatide and several follow-on molecules. Eli Lilly has executed a bolt-on acquisition of SiteOne Therapeutics for up to $1 billion, adding a clutch of non-opioid pain medicines to its pipeline, which has lately been largely focused on obesity and diabetes medications. “Today’s deal adds another arrow to Lilly’s growing quiver of pipeline opportunities, positioning Lilly with advanced planning for diversification and growth beyond GLP-1s,” BMO Capital Markets analysts wrote to investors Tuesday following the announcement. Key to the deal is the Nav1.8 inhibitor STC-004, which is nearing Phase II development for the treatment of pain, according to Lilly’s morning release . The deal could total $1 billion, including an undisclosed upfront payment for additional payments down the line based on certain regulatory and sales milestones. The addition of SiteOne would represent an expansion into new targets for Lilly, but into a field that Vertex Pharma has also captured with the approval of Journavx earlier this year, BMO said. SiteOne has been chasing Vertex in the pursuit of non-addictive pain medications . The pharma earned an FDA approval for suzetrigine , now known as Journavx, in January, marking a significant moment in the treatment of pain. But suzetrigine, which targets the NaV1.8 voltage-gated sodium channel, had a bumpy road through the clinic , with one Phase II trial showing little differentiation between the treatment and placebo arms. Biotechs like SiteOne, Tris Pharma and Latigo Biotherapeutics are hoping to do even better. Lilly, meanwhile, has been taking its own approach to pain with four assets in development. Mazisotine is a SSTR4 agonist in mid-stage testing for adults with diabetic peripheral neuropathic pain. Other Phase II assets include LY3857210, which targets the ATP ligand-gated ion channel P2X7, and LY3848575, a monoclonal antibody, both in chronic pain. The next readout for mazisotine could be coming soon, as the study’s completion date is listed as July. “A long-time player in the pain space, today’s deal reads as a strategic positive for Lilly, fast following a validated mechanism with an attractively priced deal,” BMO wrote. However, the rollout of Vertex’s asset has been challenging, which gave the analysts some pause. The acquisition of SiteOne provides a bit of diversification for Lilly, which has burrowed into the obesity and diabetes space with the mega-blockbuster dual incretin receptor agonist tirzepatide and several follow-on molecules. The deal “appears prudent as Lilly continues its string of pearls approach to deal making following its incretin success,” BMO wrote.