Eli Lilly to acquire AtaiBeckley to advance therapies for depression

Eli Lilly and Company announced Tuesday it has entered into a definitive agreement to acquire AtaiBeckley Inc., a clinical-stage biopharmaceutical company developing innovative therapies for mental health conditions. The deal is expected to enhance Lilly's neuroscience pipeline and advance treatments for difficult-to-treat depression and other challenging mental health conditions.

AtaiBeckley is developing a pipeline of rapid-acting neuroplastogens, including multiple clinical-stage programs and a discovery pipeline of next-generation compounds. Its lead asset, BPL-003, a synthetic form of 5-MeO-DMT, has shown in Phase 2b studies to provide rapid and durable relief from depression symptoms, with effects lasting for months. The U.S. Food and Drug Administration has granted BPL-003 Breakthrough Therapy Designation, and Phase 3 activities have commenced.

The acquisition also brings Lilly the VLS-01 program, a buccal film formulation of DMT that is advancing in an ongoing Phase 2b study. Both programs are designed to target the biological underpinnings of depression and other psychiatric disorders, offering a distinct mechanism of action compared to conventional antidepressants that primarily affect neurotransmitter levels.

Under the terms of the agreement, Lilly will acquire AtaiBeckley for $6.75 per share in cash, plus up to $2.50 per share in the form of a Contingent Value Right (CVR). The CVR entitles holders to additional cash payments upon the achievement of specified development and regulatory milestones for BPL-003 and VLS-01. The upfront cash consideration represents an aggregate equity value of approximately $2.8 billion, with the CVR representing an additional potential aggregate equity value of approximately $1.0 billion. The transaction is expected to close in the third quarter, subject to AtaiBeckley stockholder approval and customary regulatory approvals.