Lilly to Acquire Psychedelic Drug Developer for $3.8 Billion. Are There Any Prospects?
The world's first pharmaceutical company with a market capitalization exceeding $1 trillion is expanding its portfolio
Eli Lilly to Acquire Developer of a Drug for Severe Depression for $3.8 Billion / Photo: Shutterstock.com / Tada Images
U.S. pharmaceutical company Eli Lilly has agreed to acquire biotech firm AtaiBeckley for up to $3.8 billion. This will strengthen its position in the promising segment of psychedelic drugs for the treatment of depression and other mental disorders, according to Reuters. The deal will give the pharmaceutical giant rights to a promising drug for treating severe depression, which is in late-stage clinical trials.
Details
Eli Lilly will pay AtaiBeckley shareholders $6.75 per share, representing a premium of about 26% over the closing price on July 15 (the last trading day before the deal was announced), the pharmaceutical company said. The total value includes an upfront payment of $2.8 billion and up to $1 billion in additional payments upon reaching specified development milestones. The companies expect to close the deal in the third quarter of 2026.
AtaiBeckley’s main asset is BPL-003, a nasal spray based on psychedelic compounds designed to treat treatment-resistant depression—a severe form of the disease in which standard therapy is ineffective, according to Reuters. AtaiBeckley expects the first results from late-stage clinical trials of BPL-003 in early 2029, the publication notes. The biotech company’s stock rose 33% at the close of trading on July 16.
If the trials are successfully completed, annual sales of BPL-003 could exceed $1–2 billion, Jefferies analyst Andrew Tsai noted in a report by Reuters. The acquisition of AtaiBeckley aligns with Eli Lilly’s strategy to expand its portfolio of neurology drugs and opens up growth opportunities for the company in one of the largest markets for psychiatric disorders, according to Barclays analyst Emily Field, as quoted by Reuters. By 2034, the global market for psychedelic drugs could grow by 50% to $12 billion, according to an estimate by RBC Capital Markets cited by Reuters.
Pharmaceutical companies' interest in psychedelic therapy has increased significantly after the administration of U.S. President Donald Trump, in April 2026, directed regulators to expedite the review of a number of such drugs and expanded federal support for research in this field.
What's happening with Eli Lilly's stock?
Eli Lilly shares closed up 1.1% on July 16, and the company’s shares have risen 8.8% year-to-date. In November 2025, Eli Lilly became the first pharmaceutical company in history to reach a market capitalization of over $1 trillion. The average target price for its shares is currently $1,307, which implies an 11% increase relative to the closing price on Thursday, July 16.
Wall Street consensus remains positive regarding the U.S. pharmaceutical giant: According to MarketWatch, of the 31 analysts covering Eli Lilly, 26 recommend buying the company’s stock (Buy and Overweight ratings), three are neutral (Hold), and two recommend selling (Sell and Underweight).
This article was AI-translated and verified by a human editor
