Eli Lilly Acquires AtaiBeckley in $2.8 Billion Deal; Cathie Wood Favors Competitor Compass Pathways
Eli Lilly (NYSE: LLY) has agreed to acquire biotech firm AtaiBeckley (NASDAQ: ATAI) for an upfront payment of $2.8 billion, with up to $1 billion in potential milestone payments. The deal marks a significant shift as the pharmaceutical giant enters the psychedelic medicine space through Atai’s lead candidate BPL-003, currently in phase 3 trials for treatment-resistant depression (TRD). Cathie Wood's Ark Invest sold shares of AtaiBeckley and increased its stake in Compass Pathways (NASDAQ: CMPS), a psilocybin drug developer. This move reflects confidence that Compass is closer to commercialization, especially with recent regulatory changes under the FDA accelerating psychedelic therapy reviews. The acquisition highlights growing interest in psychedelics for mental health treatment, supported by policy shifts including an executive order from President Donald Trump and revised clinical trial guidance from the FDA.
Topics: biotech M&A investment strategy pharmaceuticals psychedelic drugs