World’s Largest Pharmaceutical Company, Eli Lilly, Acquires 5-MeO-DMT Developer AtaiBeckley for Up to $3.8 billion
World’s Largest Pharmaceutical Company, Eli Lilly, Acquires 5-MeO-DMT Developer AtaiBeckley for Up to $3.8 billion
This morning, Eli Lilly confirmed that it will acquire AtaiBeckley, following rumours circulated in Bloomberg yesterday, as well as our reporting last week that a deal was nearing completion.
AtaiBeckley’s lead candidate is intranasal 5-MeO-DMT (BPL-003) for treatment-resistant depression, which is now entering Phase 3. It has been competing fiercely with GH Research, which is developing an inhaled formulation of the drug for the same condition.
Lilly will pay $2.8 billion in cash upfront, with potential for an additional $1 billion in milestone-based biobucks over the coming years. That makes it the largest psychedelic buyout, by quite some margin, though some investors Psychedelic Alpha spoke with were disappointed by the terms.
Voices within the psychedelics field are mixed, too. Some have welcomed the acquisition as a sign of the field’s maturity, while others are skeptical of the pharmaceutical juggernaut’s fit for stewarding the development and potential roll-out of a potent psychedelic like 5-MeO-DMT.
The transaction is expected to close this quarter.