Eli Lilly and Company built its fortune on Prozac. Now it’s getting groovy with a big bet on psychedelics. The pharma giant will acquire AtaiBeckley for $2.8 billion upfront, with up to $1 billion more if development milestones are hit, CNBC reports. AtaiBeckley shares spiked more than 32% on the news.
The deal gives Lilly access to a DMT-based nasal spray already in Phase 3 trials for treatment-resistant depression, administered in a clinic where patients are monitored for about two hours. “The goal here was to find a different type of medicine,” said Lilly Chief Scientific Officer Dan Skovronsky, explaining the drug changes neural connections rather than just brain chemistry, the way Prozac does.
The acquisition adds to Lilly’s aggressive buying spree, which already includes more than $10 billion committed across eight deals this year, with a potential $25 billion total.
Eli Lilly and Company built its fortune on Prozac. Now it’s getting groovy with a big bet on psychedelics. The pharma giant will acquire AtaiBeckley for $2.8 billion upfront, with up to $1 billion more if development milestones are hit, CNBC reports. AtaiBeckley shares spiked more than 32% on the news.
The deal gives Lilly access to a DMT-based nasal spray already in Phase 3 trials for treatment-resistant depression, administered in a clinic where patients are monitored for about two hours. “The goal here was to find a different type of medicine,” said Lilly Chief Scientific Officer Dan Skovronsky, explaining the drug changes neural connections rather than just brain chemistry, the way Prozac does.
The acquisition adds to Lilly’s aggressive buying spree, which already includes more than $10 billion committed across eight deals this year, with a potential $25 billion total.