INDIANAPOLIS (dpa-AFX) - Drug major Eli Lilly and Co. (LLY) and biopharmaceutical company AtaiBeckley, Inc. (ATAI) announced Thursday a definitive agreement for Lilly to acquire AtaiBeckley in an all cash deal valued up to $3.8 billion. The proposed deal expands Lilly's neuroscience pipeline to address some of the most challenging conditions in mental health.
AtaiBeckley's lead program, BPL-003 (mebufotenin benzoate), is designed to provide durable relief from treatment-resistant depression. It is also advancing a pipeline of rapid-acting neuroplastogens, including multiple clinical-stage programs and a discovery pipeline of next-generation compounds.
Under the terms of the agreement, Lilly will acquire all outstanding shares of AtaiBeckley common stock for $6.75 per share in cash upon closing; plus up to $2.50 per share in the form of a Contingent Value Right (CVR) entitling the holder to additional cash payments upon achievement of specified development and regulatory milestones related to the BPL-003 and VLS-01 programs.
The upfront cash consideration represents an aggregate equity value of approximately $2.8 billion and the CVR represents an additional potential aggregate equity value of approximately $1.0 billion.
The transaction is not subject to any financing condition and is expected to close in the third quarter, subject to approval by AtaiBeckley stockholders and satisfaction of other customary closing conditions, including regulatory approvals. The boards of directors of both companies have approved the transaction.
The purchase price payable at closing represents a premium of approximately 40% to the 30-day volume-weighted average trading price of AtaiBeckley's common stock ended on July 15, 2026.
Apeiron Investment Group, Ltd and all directors and officers of AtaiBeckley have signed voting and support agreements pursuant to which each has agreed to vote to approve the transaction. The shares subject to the voting agreements represent a total of approximately 15% of AtaiBeckley's outstanding common stock.
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