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AtaiBeckley Soars on Acquisition Rumors
16 Jul
Summary
- Eli Lilly is reportedly in talks to acquire AtaiBeckley this week.
- AtaiBeckley's shares jumped 50% premarket on the acquisition news.
- US President's order aims to speed up access to psychedelic treatments.
Shares of psychedelic drug developer AtaiBeckley experienced a significant premarket surge of 50% on Thursday. This dramatic increase was reportedly driven by news that pharmaceutical giant Eli Lilly was in discussions to acquire the company. These acquisition talks were said to be ongoing as of Wednesday evening, with reports suggesting a deal could be finalized as early as this week.
AtaiBeckley, which focuses on mental health treatments using psychedelics, has seen its market value grow substantially this year. Its stock had already gained 31% prior to Thursday's trading. Analysts suggest the potential acquisition price could surpass $2 billion, with ongoing discussions involving other pharmaceutical firms possibly influencing a higher valuation.
The broader psychedelic drug sector has been bolstered by recent developments, including a U.S. presidential executive order issued in April. This order is intended to expedite access to treatments derived from psychedelic drugs, attracting further investment and fostering industry growth. Companies like Compass Pathways and GH Research also saw positive movement in their premarket trading.
Eli Lilly has recently been active in acquisitions, particularly within the neuroscience field, demonstrating a strategic interest in expanding its portfolio in this area. AtaiBeckley's lead candidate, BPL-003, is an intranasal formulation of 5-MeO-DMT being developed for treatment-resistant depression.
