Eli Lilly said Thursday that it will acquire psychedelic drug developer AtaiBeckley for $2.8 billion in cash, adding a new bet on experimental mental health therapies as interest in the field continues to build. The purchase price, set at $6.75 per share, represents a premium of 26% to AtaiBeckley’s Wednesday closing price of $5.36. Lilly could also pay as much as an additional $1 billion if certain development and regulatory targets are met.
The deal gives Lilly access to AtaiBeckley’s lead candidate, BPL-003, a drug related to dimethyltryptamine, or DMT, that is being studied in Phase 3 trials for treatment-resistant depression. The medicine is delivered as a nasal spray in a clinic setting, where patients are monitored for about two hours. Initial Phase 3 results are expected in 2029. AtaiBeckley is also working on other psychedelic-based treatments, including one tied to MDMA.
A broader push into psychedelics
The acquisition comes as psychedelic medicines gain momentum in healthcare and policy circles, with the Trump administration prioritizing development of such treatments for conditions including depression and post-traumatic stress disorder. In an interview with CNBC, Lilly Chief Scientific Officer Dan Skovronsky said the company was looking for a different kind of medicine for depression, one that could potentially change neural connections rather than simply alter brain chemistry. He said the AtaiBeckley program appeared capable of producing effects quickly and potentially for months, with treatment possibly needed only a few times a year.
For Lilly, the transaction also fits a wider acquisition strategy. Before the AtaiBeckley announcement, the company had already said it planned to spend more than $10 billion upfront and as much as $25 billion overall on eight acquisitions this year. Lilly has increasingly focused on larger, later-stage deals as it remains the world’s most valuable healthcare company. AtaiBeckley shares rose more than 30% in premarket trading after the news.
Source: cnbc.com
