Lilly to buy AtaiBeckley in up to $3.8bn deal

Eli Lilly (LLY) has agreed to acquire clinical-stage psychedelic drug developer AtaiBeckley in a transaction that values the company at several billion dollars. Under the terms, AtaiBeckley shareholders will receive $6.75 per share in cash. This upfront cash consideration values AtaiBeckley’s equity at about $2.8 billion. The acquisition moves Lilly further into the emerging field of psychedelic-based treatments for mental health disorders.

In addition to the cash payment, AtaiBeckley investors will be eligible for contingent value rights worth up to $2.50 per share. These payments are tied to future development and regulatory milestones for the company’s pipeline, bringing the total potential deal value to about $3.8 billion. The agreement provides a structured way for shareholders to participate in potential future upside while giving Lilly immediate control of the assets.

A central motivation for the deal is AtaiBeckley’s lead asset, BPL-003. BPL-003 is a DMT-related intranasal therapy being developed for treatment-resistant depression, an area of high medical need. The program has received Breakthrough Therapy designation from the U.S. Food and Drug Administration, reflecting its potential to offer substantial improvement over existing therapies.

BPL-003 is being advanced into Phase 3 activities, positioning it among the more advanced psychedelic-based treatments in development. By acquiring AtaiBeckley, Lilly gains full access to this program and the broader psychedelic-focused pipeline. The transaction strengthens Lilly’s neuroscience and mental health portfolio by adding a novel mechanism of action aimed at difficult-to-treat depression.

The transaction is expected to close in the third quarter, subject to approval by AtaiBeckley stockholders and customary regulatory clearances. The deal is not subject to a financing condition, indicating that Lilly has arranged the necessary funding. Until closing, AtaiBeckley will continue to operate independently while progressing its development programs in line with existing plans.

The offer terms include both immediate cash and milestone-based CVRs, aligning incentives between the buyer and existing shareholders. The structure allows Lilly to limit upfront risk while providing additional payments if key regulatory or development goals are reached. This reflects the uncertainties inherent in late-stage clinical trials for novel psychedelic therapies.

The $6.75 per share cash component represents about a 26% premium to AtaiBeckley’s Wednesday closing price of $5.36. Following reports of the deal and the official announcement, AtaiBeckley shares surged more than 60% in premarket and after-hours trading. The sharp move highlights investor reassessment of the company’s value under ownership by a large pharmaceutical group.

The premium and strong share reaction underscore the strategic importance attached to psychedelic-based mental health treatments. With this transaction, Lilly enters the psychedelic drug space at scale, while AtaiBeckley shareholders crystallize a significant portion of the company’s potential value upfront and retain exposure through contingent payments.