Eli Lilly announced Thursday that it has agreed to acquire AtaiBeckley in a deal valued at up to $3.8 billion, making a major move into the emerging market for psychedelic-based therapies targeting depression and other mental health conditions.
Under the terms of the agreement, Lilly will pay $6.75 per share in cash for AtaiBeckley — a price that represents roughly a 26% premium over where the stock closed on Wednesday.
News of the acquisition sent AtaiBeckley shares climbing more than 30% before the market opened Thursday.
Through this purchase, Lilly gains access to AtaiBeckley’s most advanced drug candidate, known as BPL-003. The product is a psychedelic-based nasal spray currently in late-stage clinical development, designed to treat treatment-resistant depression — a particularly severe form of the condition that fails to respond to conventional therapies.
The total deal value breaks down to approximately $2.8 billion paid upfront, with an additional $1 billion potentially owed depending on whether specific development milestones are achieved.
