Weight-loss drugmaker Lilly nears $1.97 bn AtaiBeckley's acquisition: Report. By Reuters Last Updated: Jul 16, 2026, 10:31:00 AM IST Eli Lilly is reportedly negotiating to acquire psychedelic drugmaker AtaiBeckley. AtaiBeckley shares experienced a significant surge following the news of these discussions. The company focuses on mental health treatments using psychedelic-based compounds. AtaiBeckley is developing an intranasal formulation for treatment-resistant depression. Talks are ongoing, and a deal could be announced this week. Eli Lilly is in talks to acquire psychedelic drugmaker AtaiBeckley and a deal could be announced as soon as this week, Bloomberg News reported on Wednesday, citing people familiar with the matter. AtaiBeckley shares soared 66% in aftermarket trading, while Lilly was flat. AtaiBeckley was up 31% so far this year and had a market value of $1.97 billion as of Wednesday's close, according to LSEG data. Lilly is negotiating a deal at a premium, Bloomberg News said. You May Like Eli Lilly and AtaiBeckley were not immediately available for comment outside regular business hours. New York-based AtaiBeckley focuses on psychedelic-based treatments for mental health conditions and is developing BPL-003, an intranasal formulation of 5-MeO-DMT for treatment-resistant depression. The company's shares received a boost this year after U.S. President Donald Trump ordered health regulators to speed up reviews of psychedelic treatments and increased federal funding for their research. Read More News on

Eli Lilly trips into red-hot psychedelics space with A big takeover. * ALLISON GATLIN * Updated 11:23 AM ET 07/16/2026 Eli Lilly (LLY) tripped into the psychedelics space Thursday with the up-to-$3.8 billion acquisition of AtaiBeckley (ATAI). The news, which confirmed a late Wednesday rumor, sent AtaiBeckley stock flying. AtaiBeckley is working on a synthetic form of 5-MeO-DMT, a psychedelic compound in testing to help patients with treatment-resistant depression. The theory is that psychedelic drugs can help restore neural plasticity in the brain, improving conditions like depression and anxiety. Lilly will pay $2.8 billion up front to buy AtaiBeckley, and up to $1 billion in contingent value rights, or CVRs, tied to clinical and regulatory milestones around its drug, BPL-003. In morning trades, AtaiBeckley stock rocketed more than 33% to 7.13, topping the takeover price of $6.75 per share up front. The CVRs add an additional $2.50 per share. Eli Lilly stock rose more than 2% to 1,183.73. Psychedelics in the spotlight. Psychedelic drugs are getting newfound attention thanks to longtime support from Health Secretary Robert F. Kennedy Jr. Last month, Definium Therapeutics (DFTX) stock soared nearly 50% in a day on positive results for its LSD-based drug in major depressive disorder. Compass Pathways (CMPS) is nearing potential approval for its form of psilocybin in treatment-resistant depression. For Lilly, the deal "enhances LLY's pipeline of potential neuroscience blockbuster candidates," Leerink Partners analyst David Risinger said in a report. The deal values AtaiBeckley stock at a roughly 40% premium to its one-month average price, Needham analyst Ami Fadia said in a client note. That's in line with recent transactions, valuing stocks at 30% to 40% premiums. "The acquisition validates our thesis for ATAI where BPL-003 had a strong competitive edge over other therapies given the short treatment duration and likeness to Spravato," Fadia said. Spravato is a treatment-resistant depression drug from Johnson & Johnson (JNJ). IBD newsletters. Get exclusive IBD analysis and actionable news daily. Follow Allison Gatlin on X/Twitter at @AGatlin_IBD. YOU MAY ALSO LIKE:

Eli Lilly will acquire AtaiBeckley for $6.75 per share in cash, representing approximately $2.8 billion in equity value. AtaiBeckley shareholders could receive up to an additional $2.50 per share through contingent value rights tied to development and regulatory milestones, potentially adding $1.0 billion. AtaiBeckley is developing rapid-acting neuroplastogens for mental health conditions. Its lead programme, BPL-003, is a synthetic form of 5-MeO-DMT delivered intranasally for treatment-resistant depression. The drug has received Breakthrough Therapy Designation from the FDA and has initiated Phase 3 activities. In Phase 2b trials, BPL-003 demonstrated rapid symptom reduction with effects lasting months. The transaction, approved by both boards, is expected to close in the third quarter subject to shareholder approval and regulatory clearances. The upfront price represents a 40% premium to AtaiBeckley's 30-day volume-weighted average share price.