Eli Lilly to buy AtaiBeckley for up to $3.8B, stock soars
Eli Lilly acquisition Eli Lilly agreed to buy AtaiBeckley for $6.75 per share in cash plus up to $2.50 per share in milestone payments, valuing the deal at up to $3.8 billion. The stock jumped over 30% to a four-year high, as the buyout locks in a premium and validates the psychedelic medicine sector.
This is the single biggest driver of ATAI's price this period, directly setting a cash floor and re-rating the stock.
Pipeline milestone and analyst upgrade AtaiBeckley completed dosing in the Phase 2b trial of VLS-01 for treatment-resistant depression, with results due in late 2026. Canaccord raised its price target to $17, citing the trial staying on track. This progress supports the company's value and the milestone payments tied to the deal.
It shows the clinical progress that underpins the acquisition's contingent value and future payments.
Index inclusion AtaiBeckley was added to the Russell 2000 and Russell 3000 indices, which can bring in passive fund buying. While the acquisition news dominates, index inclusion adds a steady source of demand for the shares.
It is a separate positive event that increases demand for the stock, though its impact is smaller than the buyout.
Valuation and profitability concerns After the surge, AtaiBeckley trades at 13.2 times book value, far above industry averages, and the company lost $663 million on just $3.5 million of revenue. The market is pricing in huge future potential, but the stock now trades above Lilly's cash offer, leaving little upside if milestones fail.
It provides a fair counterweight: the deal caps near-term gains and the rich valuation could unwind if the acquisition or milestones disappoint.