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Eli Lilly to Boost Neuroscience Pipeline With AtaiBeckley Buyout
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Key Takeaways
Lilly will acquire AtaiBeckley for $2.8B upfront to strengthen its neuroscience pipeline.
Phase III activities for ATAI's lead candidate BPL-003 have begun. It has FDA Breakthrough Therapy tag in TRD.
LLY deal includes up to $2.50 per share in milestone-based CVRs tied to pipeline development and approvals.
Eli Lilly (LLY - Free Report) announced that it has entered into a definitive agreement to acquire New York-based clinical-stage biotech AtaiBeckley (ATAI - Free Report) for an initial upfront payment of $2.8 billion.
Shares of ATAI were up 33.4% yesterday following the announcement of the news.
Lilly's interest in AtaiBeckley appears to be driven by the latter's expanding pipeline of novel psychedelic therapies for mental health disorders. The potential acquisition of ATAI could provide LLY with a differentiated neuroscience pipeline in the rapidly evolving psychiatric disease space.
ATAI’s lead asset, BPL-003, an intranasal formulation of mebufotenin benzoate, is being developed as a potential treatment for people living with treatment-resistant depression (TRD). The candidate has shown encouraging mid-stage data and earned the FDA Breakthrough Therapy designation in TRD. Phase III activities for BPL-003 have been initiated.
AtaiBeckley’s other pipeline candidates include VLS-01, which is in mid-stage development for TRD, and EMP-01, which is being developed as a potential treatment for people living with social anxiety disorder in a phase II study.
The deal, which is expected to be closed in the third quarter of 2026, is likely to strengthen LLY’s neuroscience pipeline.
LLY & ATAI Price Performance
Year to date, shares of Lilly have risen 9.1% compared with the industry’s rally of 10.2%.
Image Source: Zacks Investment Research
Year to date, shares of AtaiBeckley have surged 74.8% compared with the industry’s rise of 2.5%.
Image Source: Zacks Investment Research
Financial Consideration of the LLY/ATAI Deal
Per the agreement, Lilly will pay AtaiBeckley shareholders $6.75 per share in cash upon closing, valuing the company at approximately $2.8 billion. Shareholders may also receive up to an additional $2.50 per share through contingent value rights (CVRs) if specified development and regulatory milestones for the BPL-003 and VLS-01 programs are achieved within set timelines.
The additional $2.50 per share has been split into three milestones – $1 per share if VLS-01 enters a phase III clinical study within four years after the deal closes, $0.50 per share if BPL-003 receives FDA approval and is rescheduled by the U.S. Drug Enforcement Administration (DEA) within five years of closing of the deal and another $1 per share if VLS-01 also receives FDA approval and DEA rescheduling within seven years of closing.
The CVRs could additionally increase the deal's value by up to $1.0 billion. However, these additional payments are not guaranteed and will only be made if the agreed milestones are successfully reached.
LLY's Recent Acquisition Spree
Lilly has embarked on an aggressive merger and acquisition (M&A) spree in 2026, acquiring and partnering with biotech companies across oncology, neuroscience, cardiovascular disease, gene editing and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies. The company has announced more than $20 billion in biotech deals this year.
Last month, Lilly completed the acquisition of Centessa Pharmaceuticals, a biotech developing orexin receptor 2 agonists for narcolepsy and other sleep-wake disorders, further expanding its neuroscience pipeline.
In 2026, Eli Lilly announced several proposed acquisitions, including Ajax Therapeutics, Kelonia Therapeutics, Orna Therapeutics, CrossBridge Bio and Ventyx Biosciences, to diversify beyond its GLP-1 franchise and strengthen its pipeline in oncology, neuroscience, RNA and cell therapies.
LLY also agreed to acquire three private vaccine developers in May 2026, adding programs targeting shingles, bacterial infections and Epstein-Barr virus.
LLY & ATAI’s Zacks Rank
Eli Lilly currently carries a Zacks Rank #3 (Hold) while AtaiBeckley currently has a Zacks Rank #2 (Buy).
Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 earnings per share have risen from $1.24 to $1.25, while estimates for 2027 have increased from $1.70 to $1.76 during the same time. KNSA shares have soared 48.1% year to date.
Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 1.53%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $4.92 during the same time. LQDA shares have surged 118.3% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
View the Zacks #1 Rank List
Image: Bigstock
Eli Lilly to Boost Neuroscience Pipeline With AtaiBeckley Buyout
Key Takeaways
Eli Lilly (LLY - Free Report) announced that it has entered into a definitive agreement to acquire New York-based clinical-stage biotech AtaiBeckley (ATAI - Free Report) for an initial upfront payment of $2.8 billion.
Shares of ATAI were up 33.4% yesterday following the announcement of the news.
Lilly's interest in AtaiBeckley appears to be driven by the latter's expanding pipeline of novel psychedelic therapies for mental health disorders. The potential acquisition of ATAI could provide LLY with a differentiated neuroscience pipeline in the rapidly evolving psychiatric disease space.
ATAI’s lead asset, BPL-003, an intranasal formulation of mebufotenin benzoate, is being developed as a potential treatment for people living with treatment-resistant depression (TRD). The candidate has shown encouraging mid-stage data and earned the FDA Breakthrough Therapy designation in TRD. Phase III activities for BPL-003 have been initiated.
AtaiBeckley’s other pipeline candidates include VLS-01, which is in mid-stage development for TRD, and EMP-01, which is being developed as a potential treatment for people living with social anxiety disorder in a phase II study.
The deal, which is expected to be closed in the third quarter of 2026, is likely to strengthen LLY’s neuroscience pipeline.
LLY & ATAI Price Performance
Year to date, shares of Lilly have risen 9.1% compared with the industry’s rally of 10.2%.
Image Source: Zacks Investment Research
Year to date, shares of AtaiBeckley have surged 74.8% compared with the industry’s rise of 2.5%.
Image Source: Zacks Investment Research
Financial Consideration of the LLY/ATAI Deal
Per the agreement, Lilly will pay AtaiBeckley shareholders $6.75 per share in cash upon closing, valuing the company at approximately $2.8 billion. Shareholders may also receive up to an additional $2.50 per share through contingent value rights (CVRs) if specified development and regulatory milestones for the BPL-003 and VLS-01 programs are achieved within set timelines.
The additional $2.50 per share has been split into three milestones – $1 per share if VLS-01 enters a phase III clinical study within four years after the deal closes, $0.50 per share if BPL-003 receives FDA approval and is rescheduled by the U.S. Drug Enforcement Administration (DEA) within five years of closing of the deal and another $1 per share if VLS-01 also receives FDA approval and DEA rescheduling within seven years of closing.
The CVRs could additionally increase the deal's value by up to $1.0 billion. However, these additional payments are not guaranteed and will only be made if the agreed milestones are successfully reached.
LLY's Recent Acquisition Spree
Lilly has embarked on an aggressive merger and acquisition (M&A) spree in 2026, acquiring and partnering with biotech companies across oncology, neuroscience, cardiovascular disease, gene editing and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies. The company has announced more than $20 billion in biotech deals this year.
Last month, Lilly completed the acquisition of Centessa Pharmaceuticals, a biotech developing orexin receptor 2 agonists for narcolepsy and other sleep-wake disorders, further expanding its neuroscience pipeline.
In 2026, Eli Lilly announced several proposed acquisitions, including Ajax Therapeutics, Kelonia Therapeutics, Orna Therapeutics, CrossBridge Bio and Ventyx Biosciences, to diversify beyond its GLP-1 franchise and strengthen its pipeline in oncology, neuroscience, RNA and cell therapies.
LLY also agreed to acquire three private vaccine developers in May 2026, adding programs targeting shingles, bacterial infections and Epstein-Barr virus.
LLY & ATAI’s Zacks Rank
Eli Lilly currently carries a Zacks Rank #3 (Hold) while AtaiBeckley currently has a Zacks Rank #2 (Buy).
Some top-ranked stocks in the biotech sector are Kiniksa Pharmaceuticals (KNSA - Free Report) and Liquidia Corporation (LQDA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 earnings per share have risen from $1.24 to $1.25, while estimates for 2027 have increased from $1.70 to $1.76 during the same time. KNSA shares have soared 48.1% year to date.
Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 1.53%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $4.92 during the same time. LQDA shares have surged 118.3% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.