Lilly buys AtaiBeckley for $2.8B upfront to challenge J&J for psychedelic mental health market

(July 16, 2026 ) by Nick Paul Taylor

Eli Lilly has struck a deal to buy AtaiBeckley for $2.8 billion upfront, continuing its takeover spree to move into a psychedelic mental health sector targeted by companies including Johnson & Johnson.

AtaiBeckley’s lead candidate is BPL-003, a fast-acting intranasal formulation of the psychedelic substance 5-MeO-DMT. The substance, found in some plants and animals, stimulates the serotonin system, which regulates mood. A phase 2b trial linked BPL-003 to statistically significant improvements in patients with treatment-resistant depression (TRD) starting Day 2. The effects were maintained through Day 57.

Lilly has agreed to pay $6.75 per share in cash to buy AtaiBeckley, representing a 40% premium over the biotech’s 30-day volume-weighted average trading price. AtaiBeckley’s share price closed Wednesday at $5.36.