Lilly agrees to buy AtaiBeckley in all-cash deal worth up to $3.8B

Lilly agreed to acquire the clinical-stage psychedelic medicines company AtaiBeckley for up to $3.8 billion in cash. The upfront value is about $2.8 billion and the rest is a contingent value right tied to development and regulatory milestones. The lead asset, BPL-003, has Breakthrough Therapy Designation for treatment-resistant depression, which gives Lilly a new neuroscience position outside its metabolic franchise.

• Up to $3.8B all-cash, about $2.8B upfront
• $6.75 per share at closing plus a CVR of up to $2.50 per share
• Price represents about a 40% premium to AtaiBeckley's 30-day VWAP
• Lead asset BPL-003 (synthetic DMT nasal spray) has FDA Breakthrough Therapy Designation for treatment-resistant depression