Psychedelic Medicine▲impact 4
Psychedelic stocks surge after Eli Lilly agrees to acquire AtaiBeckley
Shares of psychedelic drug developers are surging premarket after Eli Lilly announced a definitive agreement to acquire AtaiBeckley Inc., validating the sector. AtaiBeckley shares rose 30.8%, Compass Pathways gained 7.4%, and GH Research jumped 18.9%. Lilly will pay $6.75 per share in cash, plus up to $2.50 per share via a Contingent Value Right tied to milestones for lead programs BPL-003 and VLS-01, implying an upfront equity value of about $2.8 billion and additional potential value of roughly $1.0 billion. The deal is expected to close in the third quarter. RBC Capital said GH Research represents the most direct read-through given its lead asset GH001 is nearly identical to AtaiBeckley's BPL-003, both based on 5-MeO-DMT for treatment-resistant depression, and maintained an Outperform rating with a $40 price target.