AtaiBeckley’s lead asset addresses synaptic connectivity rather than neurotransmitter levels, as targeted by traditional antidepressants.
Through an initial $2.8 billion acquisition, Eli Lilly is targeting psychedelic therapy as a promising intervention in treatment-resistant depression (TRD).
The pharmaceutical giant is acquiring US biopharmaceutical company AtaiBeckley. The firm has an innovative pipeline of rapid-acting neuroplastogens, for application in mental health conditions.
Alongside its intranasally delivered, synthetic form of 5-MeO-DMT, BPL-003 (mebufotenin benzoate), AtaiBeckley’s second most advanced asset VLS-01, is a buccal film formulation of DMT, also in Phase II development.
Phase IIb study data shows that BPL-003 enabled rapid and durable reductions in depressive symptoms following approximately two-hour long clinic sessions, with its benefits lasting months.
Research suggests serious mental health conditions may involve a loss of synaptic plasticity, which is critical to ensuring mood regulation, the company’s highlighted.
AtaiBeckley’s therapies support restoration of synaptic connectivity and aim to promote the growth of new neural connections, offering a distinct mechanism of action compared to conventional antidepressants, which mainly target neurotransmitter levels.
Carole Ho, Executive Vice President and President, Lilly Neuroscience, said: “Treatment-resistant depression persists even after multiple treatments have failed. Millions of people are still searching for relief and desperately need a therapy that works. Advancing AtaiBeckley’s investigational therapies gives us a real chance to change that.”
“Treatment-resistant depression persists even after multiple treatments have failed… Advancing AtaiBeckley’s investigational therapies gives us a real chance to change that”
Carole Ho, Executive Vice President and President, Lilly Neuroscience
In addition to the initial sum of $2.8 billion, Eli Lilly could also pay approximately $1.0 billion, based on the contingent value right (CVR), representing an additional potential aggregate equity value.
Srinivas Rao, Co-Founder and Chief Executive Officer of AtaiBeckley added: “Across our portfolio, we’re seeking to demonstrate that psychiatric illness is treatable at its biological root, not just its symptoms. Lilly’s expertise and reach are expected to accelerate that work for people whose conditions have not responded to existing treatments.”
The deal is expected to close in Q3 of 2026, subject to customary closing conditions.
In other therapeutic developments, last March, psilocybin, another psychedelic drug, demonstrated sustained clinical benefit in treatment-resistant depression. Patients given 25mg had a longer time to relapse, compared to those given 10mg and 1mg doses.
Moreover, in January 2025, the FDA approved J&J’s Spravato, which has shown similar benefit. Rather than patients needing to take a daily oral antidepressant, the monotherapy small molecule nasal spray offers simpler, easier administration.
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