taiBeckley NASDAQ:ATAI, a New York-based developer of psychedelic-based treatments for mental health conditions, rose 34.70% premarket after Eli Lilly NYSE:LLY said it would acquire the company for up to $3.8 billion. Lilly will pay $6.75 a share in cash, or about $2.8 billion, a 26% premium to Wednesday's close, with up to $2.50 a share more, roughly $1 billion, tied to development and regulatory milestones. Lilly shares were up 0.44%.
The deal marks Lilly's entry into psychedelics. AtaiBeckley's lead drug, BPL-003, is a nasal spray formulation based on DMT now in Phase 3 trials for treatment-resistant depression, with initial results expected in 2029. The company is developing other psychedelic treatments, including one related to MDMA.
The purchase extends an aggressive year of dealmaking for Lilly, the world's most valuable healthcare company, which has said it would spend more than $10 billion upfront and up to $25 billion across eight acquisitions this year. Momentum has built behind the sector since the Trump administration moved to speed development of psychedelic treatments earlier this year.