Eli Lilly Near Deal for Psychedelic Drugmaker ATAI, Stock Soars 59% After-Hours

According to Bloomberg, Eli Lilly is nearing an acquisition agreement with clinical-stage biopharmaceutical company AtaiBeckley (ATAI) on Wednesday after-hours, sending ATAI shares up 59%. The pharmaceutical giant is negotiating the deal at a premium, though specific terms, deal value, and structure have not been disclosed.

The report indicated a possible announcement could come as soon as this week. AtaiBeckley develops rapid-acting mental health treatments using psychedelic compounds and is backed by billionaire Peter Thiel. Its lead asset, BPL-003, is in late-stage development for treatment-resistant depression and holds FDA Breakthrough Therapy Designation.