Eli Lilly to buy psychedelics maker AtaiBeckley for $2.8 billion as experimental treatments gain traction

Eli Lilly will acquire psychedelic drugmaker AtaiBeckley for $2.8 billion up front, the company said Thursday, as momentum grows for using versions of the drugs as mental health treatments.

The transaction gives Lilly access to AtaiBeckley's experimental DMT-based drug that's being studied in Phase 3 clinical trials for treatment resistant depression. AtaiBeckley is developing several other psychedelics for mental health conditions, including one related to MDMA, also known as ecstasy.

AtaiBeckley's lead drug, BPL-003, is related to dimethyltryptamine, or DMT. The nasal spray is administered in a clinic where patients are monitored for about two hours. Initial Phase 3 trial results are expected in 2029.

The acquisition price of $6.75 per share in cash, or about $2.8 billion, is 26% higher than AtaiBeckley's Wednesday close of $5.36 per share. Lilly could pay up to an additional $2.50 per share, or $1 billion, if the company's drugs meet certain development and regulatory milestones.

The acquisition marks the latest sign of momentum behind psychedelics. The Trump administration has prioritized development of psychedelic-based treatments for mental health conditions, including depression and post-traumatic stress disorder. It's also the latest deal for Lilly, which has been on a spending spree. Before announcing its intention to acquire AtaiBeckley, Lilly had already said it would spend more than $10 billion upfront and potentially up to $25 billion on eight acquisitions this year.

The drugmaker has deliberately targeted later stage and therefore more expensive deals than it has historically pursued as it settles into its status as the world's most valuable healthcare company. AtaiBeckley shares spiked more than 30% in premarket trading following the announcement.