Lilly moves to acquire AtaiBeckley, strengthening its pipeline of therapies for treatment-resistant depression and broader mental health conditions

Eli Lilly and AtaiBeckley, which is a clinical-stage biopharmaceutical company building innovative treatments for mental health conditions, have entered into a definitive agreement under which Lilly will acquire AtaiBeckley.

AtaiBeckley is building out a pipeline of rapid-acting neuroplastogens, spanning multiple clinical-stage programmes alongside a discovery pipeline of next-generation compounds. Its lead asset, BPL-003 (mebufotenin benzoate), is a synthetic form of 5-MeO-DMT administered intranasally for treatment-resistant depression, a condition affecting millions of people in the United States.

A growing body of research points to treatment-resistant depression and other serious mental health conditions involving a deterioration in synaptic plasticity, the brain’s capacity to forge and reinforce connections in areas central to mood regulation. AtaiBeckley’s therapies are designed to restore this synaptic connectivity and encourage the formation of new neural pathways, offering a fundamentally different mechanism from conventional antidepressants that work primarily by adjusting neurotransmitter levels.

“Treatment-resistant depression persists even after multiple treatments have failed. Millions of people are still searching for relief and desperately need a therapy that works,” said Carole Ho, Executive Vice President and President, Lilly Neuroscience. “Advancing AtaiBeckley’s investigational therapies gives us a real chance to change that.”

In a Phase 2b study, BPL-003 produced rapid and lasting reductions in depressive symptoms following an in-clinic session averaging around two hours, with the benefits persisting for months afterwards. The US Food and Drug Administration has granted BPL-003 Breakthrough Therapy Designation, and Phase 3 activities are now underway. VLS-01, the second most advanced asset in the portfolio, is a buccal film formulation of DMT currently being evaluated in an ongoing Phase 2b study.

“Across our portfolio, we’re seeking to demonstrate that psychiatric illness is treatable at its biological root, not just its symptoms,” said Srinivas Rao, Co-Founder and Chief Executive Officer of AtaiBeckley. “Lilly’s expertise and reach are expected to accelerate that work for people whose conditions have not responded to existing treatments.”

“From Atai’s founding, our mission has been to bring transformative mental health treatments to the patients who need them most. Joining Lilly gives this pipeline, and the patients waiting for it, the benefit of the resources and scale Lilly has to potentially advance therapies faster than we could alone. I am confident this transaction represents the best path forward for patients and shareholders,” said Christian Angermayer, Founder, Largest Shareholder, and Chairman of the Board, AtaiBeckley.

Under the agreed terms, Lilly will purchase all outstanding AtaiBeckley common shares at $6.75 per share in cash upon closing, plus up to $2.50 per share through a Contingent Value Right entitling holders to further cash payments upon hitting specified development and regulatory milestones tied to BPL-003 and VLS-01. These milestone payments break down as follows: $1.00 per share upon initiation of a Phase 3 trial for VLS-01 within four years of closing; $0.50 per share upon US regulatory approval and DEA rescheduling of BPL-003 within five years; and $1.00 per share upon US regulatory approval and DEA rescheduling of VLS-01 within seven years. The upfront cash consideration values AtaiBeckley’s equity at approximately $2.8 billion, with the Contingent Value Right representing a further potential aggregate equity value of around $1.0 billion, subject to milestone achievement.

The deal carries no financing condition and is expected to complete in the third quarter, pending AtaiBeckley shareholder approval and satisfaction of customary closing conditions including regulatory clearances. The closing price payable represents a premium of roughly 40% to the 30-day volume-weighted average trading price of AtaiBeckley shares as of July 15, 2026. Both companies’ boards have given their approval to the transaction.

In a demonstration of commitment to the deal, Apeiron Investment Group and all directors and officers of AtaiBeckley have signed voting and support agreements, collectively covering approximately 15% of AtaiBeckley’s outstanding common stock.

Goldman Sachs is serving as exclusive financial advisor and Ropes and Gray as legal counsel to Lilly. Moelis and Company and Centerview Partners are acting as financial advisors and Latham and Watkins as legal counsel to AtaiBeckley, with Citi also providing financial guidance to the AtaiBeckley Board of Directors in connection with the transaction.

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Related Topics and Keywords

AtaiBeckley, clinical trial, depression, Lilly