Eli Lilly acquires psychedelic drug maker Atai Beckley for $2.8 billion
The company announced on Thursday that it will acquire clinical-stage biopharmaceutical company Atai Beckley for a down payment of US$2.8 billion to acquire its pipeline of hallucinogen-based psychiatric treatment drugs based on DMT and MDMA. Including future milestone payments, the total transaction value could be up to $3.8 billion. AtaiBeckley's core asset, BPL-003, is a synthetic 5-MeO-DMT nasal spray indicated for the treatment of treatment-resistant depression. In Phase 2b clinical trials, the drug rapidly relieved depressive symptoms in about two hours after a single dose, and the effects lasted for months. BPL-003 has received breakthrough therapy designation from the U.S. Food and Drug Administration. Phase 3 clinical trials are expected to start in the second quarter of 2026, and preliminary results are expected to be announced in 2029. According to the agreement, Eli Lilly will acquire all outstanding shares of Atai Beckley for US$6.75 per share in cash, which represents a 26% premium over the company's closing price on July 15 and a premium of approximately 40% over the 30-day volume-weighted average price. AtaiBeckley shareholders will also receive additional consideration of up to $2.50 per share if BPL-003 and another DMT oral film formulation, VLS-01, achieve certain development and regulatory milestones. AtaiBeckley also has clinical-stage pipelines such as EMP-01 (R-MDMA oral formulation) for social anxiety disorder. The company was formed from the merger of atai Life Sciences and Beckley Psytech in November 2025. As of March 2025, it held approximately US$210 million in cash and short-term securities, which can support operations until 2029. The acquisition is Eli Lilly’s eighth transaction this year. The company has previously spent more than US$10 billion in down payments to acquire three vaccine developers, Curevo, LimmaTech Biologics, and Vaccine Company, sleep drug company Centessa Pharmaceuticals, and cell therapy company Kelonia Therapeutics. Boosted by the news of the acquisition, AtaiBeckley's stock price surged more than 30% before the market opened.