Shares of AtaiBeckley soared as much as 50% in premarket trading on Thursday after a report said Eli Lilly is in advanced talks to acquire the psychedelic drug developer in a deal that could be announced as early as this week.
Eli Lilly is negotiating the acquisition at a premium, citing people familiar with the matter. Neither company immediately commented on the report.
Before Thursday's rally, New York-based AtaiBeckley had a market capitalisation of approximately $1.97 billion, according to LSEG data. The company's shares had already gained 31% in 2026 before the acquisition report emerged.
BMO Capital Markets analyst Evan Seigerman said the transaction could be worth more than $2 billion, adding that interest from other pharmaceutical companies could potentially push the acquisition price even higher.
Psychedelic Drug Stocks Rally
The acquisition report lifted sentiment across the broader psychedelic medicine sector.
- Compass Pathways rose around 7%
- GH Research jumped 15%
- Definium Therapeutics gained 6%
- Enveric Biosciences advanced 3%
The gains reflect growing investor optimism around psychedelic therapies as large pharmaceutical companies increase their interest in the emerging treatment area.
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Focus On Mental Health Treatments
AtaiBeckley is developing psychedelic-based therapies for mental health disorders.
Its lead drug candidate, BPL-003, is an intranasal formulation of 5-MeO-DMT being developed as a treatment for treatment-resistant depression, an area where demand for innovative therapies continues to grow.
Psychedelic medicines have attracted increasing attention in recent years as researchers explore their potential in treating depression, post-traumatic stress disorder (PTSD), anxiety and other psychiatric conditions.
Trump's Executive Order Boosts The Sector
The psychedelic drug industry received a significant boost in April, when U.S. President Donald Trump signed an executive order aimed at accelerating patient access to psychedelic-based treatments.
Analysts believe the order could shorten regulatory timelines, encourage clinical development and attract additional investment into the sector.
RBC Capital Markets analyst Brian Abrahams said the psychedelic medicine industry is likely to continue gaining momentum and could gradually become part of mainstream healthcare.
Lilly Continues Acquisition Spree
The reported talks are the latest in Eli Lilly's aggressive expansion strategy, particularly in neuroscience.
The pharmaceutical giant has been actively pursuing acquisitions to strengthen its pipeline. One of its recent major deals was the $7.8 billion acquisition of Centessa Pharmaceuticals' sleep-disorder drug business, underscoring its growing focus on neurological and mental health treatments.
If completed, the acquisition of AtaiBeckley would further expand Eli Lilly's presence in next-generation mental health therapies and highlight increasing interest from major pharmaceutical companies in the rapidly evolving psychedelic medicine market.
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