Eli Lilly and Company has agreed to acquire AtaiBeckley, a New York-based clinical-stage bio/pharmaceutical company developing therapeutics for mental healh conditions, in a $3.8-billion deal ($2.8 billion upfront and $1 billion in contingent value right [CVR]).   

AtaiBeckley is advancing a pipeline of rapid-acting psychedelic-based neuroplastogens. The company’s lead asset, BPL-003 (mebufotenin benzoate), is a synthetic form of 5-methoxy-N,N-dimethyltryptamine (5-MeO-DMT), a psychedelic compound. The company plans to initiate Phase III studies following positive results from a Phase II study. The drug is administered intranasally for treatment-resistant depression and has been granted Breakthrough Therapy Designation by the US Food and Drug Administration. AtaiBeckley’s second most advanced program, VLS-01, is a buccal film formulation of DMT in Phase IIb development. Other pipeline candidates include EMP-01 ((R)-MDMA HCI) for treating social anxiety disorder. The company is also advancing a drug-discovery program to identify novel, non-hallucinogenic 5-HT2AR agonists. 

Emerging research indicates that treatment-resistant depression and other serious mental health conditions may involve a loss of synaptic plasticity, the brain’s ability to form and strengthen connections in regions critical to mood regulation. AtaiBeckley’s therapies are designed to restore synaptic connectivity and aim to promote the growth of new neural connections, which provides a different mechanism from conventional antidepressants that primarily target neurotransmitter levels, according to information from Lilly. 

Under the terms of the agreement, Lilly will acquire all outstanding shares of AtaiBeckley’s common stock for $6.75 per share in cash upon closing, plus up to $2.50 per share in the form of a CVR entitling the holder to certain additional cash payments upon achievement of specified development and regulatory milestones related to the BPL-003 and VLS-01 programs. The upfront cash consideration represents an aggregate equity value of approximately $2.8 billion and the CVR represents an additional potential aggregate equity value of approximately $1.0 billion.  

The Boards of Directors of both companies have approved the transaction, which is expected to close in the third quarter of 2026, subject to approval by AtaiBeckley stockholders and satisfaction of other customary closing conditions, including regulatory approvals.  

Source: Eli Lilly and Company