AtaiBeckley, a psychedelic drug developer, saw its shares surge 50% in premarket trading on Thursday after a report emerged that Eli Lilly was in talks to acquire the company. According to Bloomberg News, the potential deal could be valued at over $2 billion.
Potential Acquisition
The report, which cited people familiar with the matter, stated that Eli Lilly was negotiating a deal at a premium. AtaiBeckley focuses on developing psychedelic-based treatments for mental health conditions, including treatment-resistant depression.
The potential acquisition is seen as a significant development in the psychedelic sector, which has gained momentum in recent months. U.S. President Donald Trump’s executive order in April to help speed up access to treatment based on psychedelic drugs has sparked an industry-wide rally.
Analysts believe that the deal could support a higher takeout price for AtaiBeckley, given the company’s strong pipeline of potential treatments. AtaiBeckley’s shares have gained 31% so far this year, giving the company a market value of $1.97 billion as of Wednesday’s close.
Eli Lilly has been on an acquisition spree, particularly in the neuroscience space, highlighted by the $7.8 billion buyout of Centessa Pharmaceuticals. The company’s potential acquisition of AtaiBeckley is seen as a strategic move to expand its portfolio of treatments for mental health conditions.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
