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Eli Lilly to Acquire AtaiBeckley for Up to $3.8 Billion to Expand Neuroscience Pipeline

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Eli Lilly to Acquire AtaiBeckley for Up to $3.8 Billion to Expand Neuroscience Pipeline

AtaiBeckley (ATAI) shares surged more than 30% on Thursday after Eli Lilly (LLY) said it agreed to acquire the clinical-stage biopharmaceutical company for up to $3.8 billion.

The purchase price comprises $2.8 billion in upfront cash and about $1 billion in contingent value rights, the pharmaceutical giant said Thursday.

New York-based AtaiBeckley is developing rapid-acting therapies for mental health conditions, with its BPL-003 lead program currently in phase 3 development as an intranasal therapy for treatment-resistant depression.

Under the agreement, Eli Lilly will pay $6.75 per share in cash upon closing and up to $2.50 per share in CVRs.

The CVR payment includes $1 upon starting a phase 3 trial for VLS-01, a dissolving oral film targeting treatment-resistant depression, within four years of closing and another $1 upon US regulatory approval and Drug Enforcement Administration rescheduling of the drug within seven years. The remaining $0.50 is tied to US regulatory clearance and rescheduling of BPL-003, within five years.

"Treatment-resistant depression persists even after multiple treatments have failed. Millions of people are still searching for relief and desperately need a therapy that works," Carole Ho, president of Lilly Neuroscience, said in a statement. "Advancing AtaiBeckley's investigational therapies gives us a real chance to change that."

Earlier this year, Eli Lilly agreed to acquire Centessa Pharmaceuticals for up to $7.8 billion, Kelonia Therapeutics for up to $7 billion, Orna Therapeutics for up to $2.4 billion, and three vaccine developers, Curevo, Vaccine Company, and LimmaTech Biologics for up to $1.5 billion, $1.55 billion, and $780 million, respectively.

In April, the drugmaker raised its full-year outlook and reported better-than-expected first-quarter results. The company's second-quarter results are scheduled for Aug. 5.

AtaiBeckley shares rose 33% in recent Thursday trading, while Eli Lilly was up 1.4%.

Price: $7.16, Change: $+1.80, Percent Change: +33.49%

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