Eli Lilly (LLY) Stock Buys Psychedelic Drugmaker AtaiBeckley for $2.8 Billion

TLDR

• Eli Lilly will acquire psychedelic drugmaker AtaiBeckley for $2.8 billion upfront, or up to $3.8 billion including milestone payments
• The deal gives Lilly access to BPL-003, a DMT-based nasal spray in Phase 3 trials for treatment-resistant depression
• Lilly is paying $6.75 per share — a 26% premium to AtaiBeckley’s Wednesday close of $5.36
• AtaiBeckley (ATAI) surged more than 30% in premarket trading following the announcement
• This is Lilly’s ninth acquisition deal this year, with total spending already topping $10 billion upfront

---

Eli Lilly has agreed to acquire AtaiBeckley for $2.8 billion upfront, with the potential for an additional $1 billion in milestone-based payments. The offer price of $6.75 per share represents a 26% premium to AtaiBeckley’s closing price of $5.36 on Wednesday.

Eli Lilly $LLY agreed to acquire AtaiBeckley $ATAI for up to $3.8B.

Terms: $6.75/share cash upfront, valuing AtaiBeckley at about $2.8B, plus a CVR worth up to $2.50/share tied to BPL-003 and VLS-01 milestones.

The upfront price is a roughly 40% premium to $ATAI’s 30-day VWAP.… pic.twitter.com/ZsYaRqCYul

— Wall St Engine (@wallstengine) July 16, 2026

AtaiBeckley (ATAI) jumped more than 30% in premarket trading after the announcement. Lilly (LLY) was up around 0.51% in after-hours trading.

Atai Beckley Inc., ATAI

At the center of the deal is AtaiBeckley’s lead drug candidate, BPL-003. It’s a DMT-based nasal spray being tested in Phase 3 clinical trials for treatment-resistant depression — a form of the illness that doesn’t respond to standard treatments.

Patients take the spray in a clinic and are monitored for around two hours. Early Phase 3 results are not expected until 2029.

AtaiBeckley is also developing other psychedelic-based drugs, including one related to MDMA (ecstasy), and a treatment for social anxiety disorder.

Lilly’s Psychedelic Play

The deal marks Lilly’s first move into psychedelic medicine. It comes as interest across the pharma industry in this space has picked up speed.

AbbVie paid up to $1.2 billion last year for an experimental psychedelic depression drug from Gilgamesh Pharmaceuticals. Lilly’s entry signals the race is heating up further.

The Trump administration has added fuel to the sector, directing health regulators in April to fast-track reviews of certain psychedelic treatments and boosting federal research funding.

BMO analyst Evan Seigerman said AtaiBeckley “would provide differentiated exposure in psychiatry and reinforce the company’s broader effort to diversify beyond its cornerstone cardiometabolic franchise.”

A Busy Year for Lilly’s Dealmaking

This acquisition is part of a wider spending push for Lilly. Before announcing the AtaiBeckley deal, the company had already committed more than $10 billion upfront across eight acquisitions in 2025 alone, with potential total payouts reaching $25 billion.

In June, Lilly completed its acquisition of Centessa Pharmaceuticals for up to $7.8 billion, adding experimental drugs targeting sleep-wake brain systems.

Lilly has been deliberately targeting later-stage, higher-priced deals as it cements its position as the world’s most valuable healthcare company.

The cash funding these acquisitions is coming largely from booming demand for its obesity and diabetes drugs. Lilly has been channeling those profits into building out its pipeline across neuroscience, immunology, and oncology.

The AtaiBeckley deal is expected to close in the third quarter of 2026.