Eli Lilly is in early talks to buy psychedelic drugmaker AtaiBeckley, sending shares up 66%. The deal would mark Lilly's first entry into psychedelic medicine.
Eli Lilly is in early-stage talks to acquire AtaiBeckley, a psychedelic drug developer, sending the smaller company's shares up 66% in Tuesday trading.
The deal would give Lilly a pipeline of psychedelic-based treatments for depression and PTSD, a class of drugs that has drawn growing interest from large pharmaceutical companies. AtaiBeckley's lead candidate, a synthetic psilocybin compound, is in Phase 2 trials for treatment-resistant depression.
Lilly's move follows similar investments by Johnson & Johnson and Compass Pathways into the space. The acquisition would mark Lilly's first entry into psychedelic medicine, expanding beyond its core diabetes and oncology franchises.
AtaiBeckley's market value rose to roughly $1.2 billion on the news. The company had traded below $10 a share for most of the past year before the report.
Lilly declined to comment. AtaiBeckley did not respond to a request for comment.
LLY shares were little changed on the session. The stock carries an Alpha Score of 60 out of 100, a Moderate rating, reflecting its steady performance in the healthcare sector.
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