Following its high-profile dealmaking spree in the first portion of 2026, Eli Lilly has struck again – this time through a multi-billion-dollar acquisition of psychedelic biotech, AtaiBeckley.
Through the deal, which will set Lilly back $2.8bn upfront, the pharmaceutical giant will absorb AtaiBeckley’s three-strong clinical-stage pipeline – including nasally administered treatment-resistant depression (TRD) candidate, BPL-003. The synthetic 5-methoxy-N,N-dimethyltryptamine (5-MeO-DMT)-based treatment-resistant depression (TRD) candidate, otherwise known as mebufotenin benzoate, recently entered Phase III development after it triggered a 19.0-point reduction in depression scores from baseline after two doses in a Phase IIa study.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
While BPL-003 is AtaiBeckley’s most developed asset, the company is also making headway in developing two other assets: VLS-01 and EMP-01.
Like BPL-003, VLS-01 is a DMT-based TRD therapy. Instead of the intranasal route harnessed by mebufotenin benzoate, the drug is delivered by an orally dissolving film, which holds the potential to mitigate patient compliance issues linked to nasal spray administration. VLS-01 is currently in Phase II development.
Also in mid-stage development is AtaiBeckley’s MDMA-based social anxiety disorder (SAD) therapy, EMP-01, which recently secured an efficacy and safety win in a Phase IIa trial.
AtaiBeckley formed after atai Life Sciences and Beckley Psytech merged in November 2025 – harmonising their pipelines of psychedelic therapies for mental health conditions.
As per terms of the deal, AtaiBeckley shareholders could receive a further $1bn on top of the upfront $2.8bn from Lilly through a contingent value right (CVR) if certain development and regulatory milestones are met.
Big pharma opens its eyes to psychedelics
Eli Lilly’s AtaiBeckley buyout marks the pharma giant’s first foray into the burgeoning realm of psychedelics – a space which rival big pharma company AbbVie also recently entered by buying the rights to Giglamesh’s next-generation psychedelic compound, bretisilocin, for $1.2bn.
According to Jefferies analysts, the Lilly acquisition supports its view that “big pharma’s interest in the space is rising”. They voice this opinion as traditional psychedelic compounds continue to demonstrate promise in late-stage clinical trials, with therapies like Compass Pathways’ psilocybin therapy, COMP360, demonstrating profound and durable responses in patients with TRD.
While a classic psychedelic is yet to secure the regulatory green light for any mental health condition, COMP360 could become the first to surpass this milestone, as the US Food and Drug Administration (FDA) is currently mulling over an approval decision for the drug in TRD based on positive Phase III results.
Definium Therapeutics’ DT120, a lysergic acid diethylamide (LSD)-based psychedelic for major depressive disorder (MDD), also recently posted Phase III success – putting the drug in a positive position as it awaits the readout from the other ongoing MDD trial. In a statement from the time of the readout, GlobalData neurology analyst Philippa Salter told Pharmaceutical Technology’s sister publication, Clinical Trials Arena, that DT120’s rapid efficacy from a single dose could especially appeal to patients looking to avoid locking themselves into long-term maintenance treatment.
Despite the promising efficacy signals of psychedelic therapies, some experts are concerned about global infrastructure readiness for such therapies, as they require in-clinic administration and monitoring. In a previous conversation with Pharmaceutical Technology, experts noted that psychedelic implementation and access challenges are likely to persist – potentially creating a risk of a “two-tiered system” developing, in which only those who can afford treatment through private markets receive them.
From the clinical study perspective, however, the FDA has published finalised guidance for sponsors conducting studies, which shines a light on the agency’s expectations as sponsors increasingly study such therapies in the clinic. The document focuses on recommendations for participant safety, trial design, abuse potential and best practices for data collection.
