The potential of psychedelic substances for psychiatric treatments led Eli Lilly to strike a deal to acquire the biotechnology company AtaiBeckley, backed by billionaire Peter Thiel , founder of PayPal , Palantir, and the venture capital firm Founders Fund, for up to $3.8 billion.
The agreement provides for a payment of US$2.8 billion by AtaiBeckley, whose treatments are in the clinical trial phase, plus the possibility of an additional US$1 billion upon meeting targets related to the development of the medications.
The acquisition values AtaiBeckley, chaired by German billionaire Christian Angermayer, at a premium to its market capitalization of nearly $2 billion recorded on Wednesday, July 15, and 40% above the average price of the last 30 days.
Traded on NasdaqGM, a segment of Nasdaq focused on mid-sized companies, AtaiBeckley's shares were up 34.14% before the opening of trading, around 9:40 am (local time), quoted at US$ 7.19.
Founded in 2025 from the merger of Atai Life Sciences and Beckley Psytech, AtaiBeckley has focused on developing treatments derived from a synthetic substance administered via nasal spray to treat treatment-resistant depression, a condition in which patients do not improve even after using conventional antidepressants .
According to Eli Lilly, AtaiBeckley's treatments aim to restore these connections and stimulate the formation of new brain connections. The proposal is to act differently from traditional antidepressants, which primarily work by altering the levels of chemicals responsible for communication between neurons.
The acquisition is the latest in a series of deals closed by Eli Lilly this year. The pharmaceutical company has been leveraging the robust cash flows generated by weight-loss and diabetes medications, such as Zepbound and Mounjaro , to acquire early-stage biotechnology companies.
This year alone, Eli Lilly has invested up to US$28.8 billion in acquiring these companies, according to a survey by the Financial Times (FT) . Among the acquisitions are Centessa Pharmaceuticals, a manufacturer of sleep disorder medications, for up to US$7.8 billion, and Kelonia Therapeutics, an oncology biotechnology company, for up to US$7 billion.
The purchase of AtaiBeckley also comes at a time when psychedelics are losing their stigma and becoming increasingly accepted as substances with medicinal potential.
In recent years, scientists have resumed research begun in the 1940s on the therapeutic potential of these substances. Early results show that LSD, psilocybin—the main active substance in hallucinogenic mushrooms—and MDMA, one of the substances present in ecstasy, may help in the treatment of depression, post-traumatic stress, and other psychiatric illnesses.
Investments in this type of therapy also gained momentum after US President Donald Trump signed an executive order in April to expedite the approval of psychedelic-based medications. US Health Secretary Robert Kennedy Jr. is an enthusiast of the subject.
The acquisition also represents a return of Eli Lilly to the psychiatric treatment segment. Before launching weight-loss drugs, which led the company to reach a market value of US$1 trillion, the pharmaceutical company was one of the leading manufacturers of psychiatric medications, marketing treatments for depression, including Prozac and Cymbalta.
