Eli Lilly to Buy AtaiBeckley in Up to $3.8 Billion Psychedelic Drug Deal
Synopsis
Eli Lilly’s up to $3.8 billion acquisition of AtaiBeckley strengthens its push into psychedelic therapies, adding the late-stage depression treatment BPL-003 to its growing neuroscience portfolio.
Key Highlights
- Eli Lilly has purchased AtaiBeckley for up to $3.8B.
- Enhances Lilly’s strategic focus on psychedelic-derived therapeutic agents for mental health disorders.
- The company forecasts closing the deal in the third quarter.
Big pharma firm Eli Lilly (NYSE: LLY) has struck a$3.8 billion acquisition deal with AtaiBeckley, expanding its neuroscience pipeline and strengthening its position in the nascent market for psychedelic drugs for depression and other mental health conditions.
Lilly will pay $6.75 a share in cash, which is a 26% premium to AtaiBeckley’s Wednesday closing share price. The deal is valued at $2.8 billion upfront plus milestone payments that could total up to an additional $1 billion.
The agreement comes as interest in psychedelic medicines has emerged following US President Donald Trump’s call in April for health regulators to accelerate reviews of a handful of psychedelics and the subsequent doubling of federal funding for research.
Lead Depression Drug Drives Acquisition
Lilly gets hold of BPL-003, AtaiBeckley’s lead dry-peach-based rasal within the nasal spray that was just being developed in level 2 for treatment-resistant depression.
As well as a treatment for social anxiety disorder (via AtaiBeckley). The companies anticipate that the deal could be finalised in the third quarter.
Lilly Expands Neuroscience Portfolio
The deal is Lilly’s most recent spend in the neuroscience space since completing its up to $7.8 billion buy of Centessa Pharmaceuticals back on June 1. The company has been funding expansion of its pipeline in immunology, oncology and neuroscience with revenue from its obesity drugs.
Psychedelic therapies have attracted interest in the broader pharmaceutical sector as well, and this deal is a larger reflection of that trend. In 2020, AbbVie signed a potentially $1.2 billion deal to acquire an experimental depression drug dosed with psychedelics from Gilgamesh Pharmaceuticals this year.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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