Key facts
- Eli Lilly will acquire AtaiBio for up to $3.8 billion.
- The deal includes $2.8 billion upfront and up to $1 billion in milestone payments.
- Lilly will pay $6.75 per share, a 26% premium to Wednesday's closing price.
- The acquisition provides Lilly access to AtaiBio's BPL-003, a treatment for depression.
- The deal is expected to close in the third quarter.
Eli Lilly will acquire AtaiBio for up to $3.8 billion, signaling a significant move by a major pharmaceutical company into the burgeoning field of psychedelic treatments for mental health disorders. The deal, expected to close in the third quarter, includes an upfront payment of $2.8 billion and up to $1 billion in milestone-based payments, representing a premium of approximately 26% to AtaiBio's closing price on Wednesday.
This acquisition grants Lilly access to AtaiBio's lead candidate, BPL-003, a psychedelic-based nasal spray in late-stage development for treatment-resistant depression. The move aligns with Lilly's strategy to diversify its pipeline beyond its core cardiometabolic franchise and strengthen its neuroscience offerings, following its recent $7.8 billion acquisition of Centessa Pharmaceuticals.
The interest in psychedelic treatments has been growing among pharmaceutical companies, with AbbVie previously acquiring an experimental psychedelic-based depression drug for up to $1.2 billion. The sector has also seen increased attention following U.S. President Donald Trump's directive to health regulators to expedite reviews of certain psychedelic treatments and boost federal research funding.
BMO Capital Markets analyst Evan Seigerman noted that AtaiBio would provide differentiated exposure in psychiatry, reinforcing Lilly's broader diversification efforts. The deal is part of Lilly's broader strategy to invest cash generated from its successful obesity drugs into its pipeline across immunology, oncology, and neuroscience.