Eli Lilly to acquire AtaiBeckley for up to $3.8B, betting on psychedelic drugs for mental health

Published Jul 19, 02:45 PM UTC

Eli Lilly announced it will acquire clinical-stage psychedelic drug maker AtaiBeckley for up to $3.8 billion, marking a major endorsement of psychedelic medications for mental health treatment. The deal follows positive clinical trial results and President Trump's April executive order fast-tracking FDA reviews of such drugs. AtaiBeckley's lead asset, BPL-003, a synthetic 5-MeO-DMT nasal spray for treatment-resistant depression, has Breakthrough Therapy Designation and is in Phase 3 trials. Analysts estimate a potential $1-2 billion market opportunity if approved by early 2029. The article notes that psychedelics like psilocybin, MDMA, and LSD are being tested for depression, PTSD, anxiety, and addiction, with experts calling them a potential paradigm shift in psychiatry. J&J's ketamine-derived Spravato remains the current market leader with $2 billion in projected annual sales.