Eli Lilly to Acquire AtaiBeckley in Deal Worth Up to US$3.8 Billion

Shares of AtaiBeckley surged about 30% in premarket trading after Eli Lilly & Co. announced plans to acquire the clinical-stage biopharmaceutical company in a deal valued at up to US$3.8 billion, Yahoo Finance reported.

Eli Lilly announced plans to acquire psychedelic drug developer AtaiBeckley. (Photo: Eli Lilly)

Under the agreement, Lilly will pay US$2.8 billion upfront, with an additional US$1 billion tied to the achievement of specified development milestones.

The acquisition gives Lilly access to AtaiBeckley's experimental therapy for patients with treatment-resistant depression, strengthening the company's growing neuroscience and psychiatric drug portfolio.

"AtaiBeckley's therapies are designed to restore synaptic connectivity and aim to promote the growth of new neural connections, offering a distinct mechanism from conventional antidepressants," Eli Lilly said in a statement.