AtaiBeckley shares surge after Eli Lilly announces acquisition

AtaiBeckley shares climbed sharply after Eli Lilly agreed to acquire the clinical-stage biotechnology company in a deal valued at up to $3.8 billion. The offer consists of $6.75 per share in cash up front, with an additional $2.50 per share available through contingent value rights tied to clinical and regulatory milestones. The cash portion of the deal amounts to about $2.8 billion. Lilly’s announcement states the transaction is expected to close in the third quarter, subject to customary closing conditions.

The primary asset in the agreement is BPL-003, an intranasal formulation of 5‑MeO‑DMT that is ready for Phase III testing. The drug is being developed as a rapid-acting treatment for treatment-resistant depression, designed to be administered in a single, two-hour clinic session. AtaiBeckley’s broader pipeline includes programs such as VLS-01; the contingent payments will be payable only if specified late-stage clinical and regulatory milestones, including U.S. Food and Drug Administration approvals, are met.

Market reaction extended beyond AtaiBeckley. ATAI shares were trading above Lilly’s $6.75 cash offer at the time of reporting, around $7.15, after more than doubling from levels in early March. Competitors in the psychedelic therapeutics sector moved higher on the news, with GH Research up roughly 15% and Compass Pathways up about 7%.

An April executive order directed federal agencies to accelerate evaluations of psychedelic therapies, a regulatory development that has influenced investor and corporate interest in late-stage psychedelic programs. Lilly has used cash generated from its successful weight-loss medicines to expand into new therapeutic areas, including neuropsychiatric assets.

Analysts updated coverage after the announcement. Analysts at Oppenheimer set a $16 price target for AtaiBeckley. Consensus ratings on Eli Lilly remain positive, with a mean price objective near $1,290 and a prevailing Strong Buy view among tracked analysts.

The deal will require customary regulatory approvals and closing conditions. The contingent value rights will pay out only if the acquired programs achieve the specified clinical and regulatory outcomes.